Advocate General: collective redundancy notification already required when negotiating the transfer of a hotel operation
On 29 October 2026 the opinion delivered by Advocate General De Bock on 23 October in a cassation case on collective redundancy in the transfer of a hotel operation was published (ECLI:NL:PHR:2026:1016). The Supreme Court will rule later.
The case
A hotel operator transferred the lease of the hotel building to another operator through an asset transaction and assumed a transfer of undertaking. That turned out not to be the case; dismissals followed after permission from the Employee Insurance Agency (UWV). According to the 's-Hertogenbosch Court of Appeal (ECLI:NL:GHSHE:2025:2925), the decision to negotiate the transfer already obliged the employer to consider a collective redundancy, so it should have notified at the latest on signing (Article 3 Collective Redundancy Notification Act, WMCO). An information meeting was moreover not a staff meeting in which staff could give advice (Article 35b(5) Works Councils Act, WOR). The court awarded fair compensation of two months' salary, increased by a factor of 2.
The Advocate General's opinion
According to the Advocate General, this is in line with the strict case law of the Court of Justice of the EU: certainty about the collective redundancy is not required, and the expectation of a transfer of undertaking does not change that. The compensation also stands: breaching the WMCO and the WOR must not be cheaper than a lawful termination. He advises dismissing the appeal.
Practical tips
Assess the WMCO already in the deal phase, not only after signing.
Do not simply assume a transfer of undertaking; prepare for the scenario without a transfer.
In a small company, organise a genuine staff meeting in which staff can give advice.
Read the opinion: ECLI:NL:PHR:2026:1016
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This blog provides general information and is not legal advice. For advice on a specific situation, please contact us.
