Timing is everything: how the Dutch redundancy notification act can help organisations struggling with the pace of restructuring
Many employers in the Netherlands will face far-reaching decisions in 2026, including restructuring and reorganisation, driven by factors that include digitalisation, AI, cost increases, pressure on margins, strategic realignment, changing market demand and economic uncertainty. In the face of these challenges, even financially healthy organisations are implementing restructuring measures to future proof their business models.
When considering intervention, employers in the Netherlands must be able to explain why intervention is necessary, and carefully determine when and how to implement a response. Timing will be crucial, and for larger reorganisations the one-month statutory delay under the Dutch Collective Redundancy Notification Act (WMCO) can determine the pace of the process.
The following article discusses what the WMCO waiting period means for employers, how to avoid settlement agreement (VSO) processes becoming stalled, and how to build a timeline in which the WMCO notification, trade unions, works councils and internal communications are logically aligned.
The WMCO notification obligation and waiting period
The WMCO requires employers to notify a proposed collective redundancy if, within a three month period, twenty or more employees are dismissed within the same UWV labour market region. This notification must be submitted in writing to both the UWV and the relevant trade unions, which are defined as those active within the undertaking (i.e. their members work there or are party to the applicable collective labour agreement). The notification obligation applies regardless of the chosen termination route. Notification is also required where termination by mutual consent (VSO) is envisaged.
Notification must be specific, including the reasons for the collective redundancy and the details regarding the number and categories of employees concerned, the proposed timing, the selection method applied and the route by which employment contracts will be terminated. Only when the UWV has confirmed that the notification is complete does the one-month statutory delay begin.
The one-month statutory delay is not a formality. During this period, employment contracts may not be terminated, including through a settlement agreement. The waiting period may only be reduced or waived, in whole or in part, if the relevant trade unions consent.
Why the waiting period determines your planning
In practice, the WMCO statutory delay functions as the pivot point of the entire reorganisation process. Once the waiting period has commenced, it becomes clear when implementation is legally permissible. As a result, almost all other steps must be aligned with this moment, including the works council consultation process, discussions with trade unions, internal and external communications and the preparation of individual employee files.
An incomplete or premature notification will delay the timeline. This can lead to postponement of implementation and to internal unrest and discussions about expectations already raised. By contrast, a well prepared WMCO notification contributes to clarity and predictability.
Settlement agreement processes: where things often go wrong
As termination by mutual consent falls within the scope of the WMCO, the one-month statutory delay also applies to settlement agreements. Settlement agreements may only be concluded after the statutory delay has expired, unless the trade unions have agreed to a shortening of that period. Individual conversations with employees are permitted during the statutory delay, provided these do not result in concrete termination arrangements.
In practice, this phase often results in tension as management seeks progress, employees request clarity and HR tries to move forward. A careful approach requires that the waiting period is used as a preparation phase (e.g. by finalising documentation, aligning mandates and communications, and reviewing individual cases). Formal individual termination processes should only begin when the waiting period has ended, or before if the trade unions consent to a reduction.
Greater control over planning: a timeline that provides structure
A workable timeline requires clear direction and sequencing. In practice, it is often best to plan the timeline in reverse. The starting point is the moment at which implementation must be legally possible. From there, the timeline begins with a clearly defined intended reorganisation decision and a realistic assessment of the personnel impact. The works council consultation process and discussions with trade unions are organised in parallel, ensuring that the substantive choices and communication frameworks necessary for an effective WMCO notification are in place.
During the one-month statutory delay, the social plan, internal communications and individual termination processes are further developed, enabling implementation to commence immediately once the waiting period has expired. This approach prevents unnecessary delays and provides structure for managing legal and organisational risks.
For advice on the preparation and submission of a WMCO notification, the development of realistic timelines and how to structure works council, trade union and settlement agreements, contact your CMS client partner or the CMS experts who contributed to this article.
