From 75,000 in 2003, the number of layoffs
challenged in court went down to less than 21,000 in 2008, in spite of the
crisis. Indeed, according to the study commissioned by the Ministry of Labor
and Social Affairs, the judges terminate the employment contract in 83% of
cases. In two in three cases, he grants benefits to employees amounting to
€19,000 in average. In 14% of cases, this average amounts to €75,000 but
employees usually only receive 34% of the benefits they are entitled to. Going
to court to object to layoffs is common practice in the Netherlands. In
spite of legal fees, employers view it as a good way to confirm the layoff and
make the procedure faster. In theory, labor contract terminations are managed
by the Labor and Income Center (CWI), the employment agency competent to object
to layoffs. In that case, employers rarely go to court because they are afraid
judges will confirm the CWI’s decision. In court, the “magistrates’ method”
(one month’s pay per year of seniority) is usually used to calculate layoff
pay. In the Netherlands,
layoffs are not a tragedy and employees are not stigmatized, on a labor market
where mobility is the rule and where people change jobs often.
es’ method”
(one month’s pay per year of seniority) is usually used to calculate layoff
pay. In the Netherlands,
layoffs are not a tragedy and employees are not stigmatized, on a labor market
where mobility is the rule and where people change jobs often.
Planet Labor, September 30, 2009, No. 090887 – www.planetlabor.com
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