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Smart restructuring blog #5: The WMCO

Writer's picture: Muriel Hartjes-GovaertMuriel Hartjes-Govaert
Een minimalistische illustratie van een netwerk met cirkels en lijnen die dynamisch zijn herordend, tegen een lichtblauwe achtergrond. De afbeelding symboliseert reorganisatie en structuur.

Are you expecting a major reorganization with redundancies? In this blog, you'll find accessible information about situations where the WMCO applies!


What is the WMCO?

The WMCO (Collective Redundancy Notification Act) regulates legal obligations if you intend to:

  • Dismiss 20 or more employees,

  • Within a period of three months,

  • Within one work area.


What counts toward the first condition?

Dismissal is interpreted broadly. Included are:

  • Termination after approval from the UWV,

  • Dissolution through the subdistrict court,

  • Termination by mutual agreement (settlement agreement).


Not included are:

  • Termination of the employment contract for personal reasons (e.g., underperformance),

  • Dismissal during the probationary period,

  • Expiry of a fixed-term employment contract.


Helpful facts:

  • Under certain circumstances, part-time dismissal and an offer for transfer or reassignment under the threat of dismissal can be considered termination under the WMCO.

  • On-call agreements also count as employment contracts and can be included.


Note: Some collective labor agreements (CLAs) require notifying unions even if fewer than 20 employees are affected. Always check!


How do you determine the time frame?

The three-month period in which 20 or more employment contracts are terminated is not limited to before or after an individual dismissal. It can partially overlap with or extend beyond specific dismissals.


What are the work areas?

The work areas are divided as follows:


a. Friesland, Groningen, and Drenthe


b. Overijssel and Gelderland


c. North Brabant and Limburg


d. South Holland and Zeeland


e. Flevoland and Utrecht


f. North Holland


How do you determine the work area?

The default is the work area where the employee performs or has performed their duties.

  • For highly variable locations: the employee's place of work.

  • If unavailable: the employer’s establishment from which the notification is filed.

  • If none of the above applies: the employee's place of residence.


Tip of the Day: Think in possibilities!


In blog #6, I’ll discuss the obligations under the WMCO.

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