What is the reference date?
The reference date is more than an administrative formality. An organization's workforce changes over time. Applying the mirroring principle may yield different results at an earlier or later time. That’s why a reference date is necessary. It’s your reference point to determine which data and circumstances are considered when determining the personnel impact of a restructuring. This includes contract type (temporary/permanent), years of service, job function (per interchangeable job group), salary, and disability status. These data points determine who becomes redundant according to the mirroring principle. This date forms the basis for the rest of the restructuring process.
Which date can you use as the reference date?
The default for the reference date is the day you file a dismissal application with the UWV. However, this may not always be practical due to preparation time, workforce changes, or effective redeployment efforts. Therefore, you may choose an earlier objectively determinable date if:
there is a reasonable basis to use this date, and
this date falls after notifying employees that positions will be eliminated.
The UWV cites the date of redundancy declaration (after which redeployment/mobility starts) as an example of an earlier reference date. Note: in the temp sector, see Article 12 paragraph 3 of the Dismissal Regulation.
What else should you consider?
Choose carefully, not arbitrarily. Ensure alignment with the restructuring schedule. Substantiate your choice and document it. Use a consistent reference date. Engage in timely consultation with the works council and/or unions.
What if changes occur after the reference date?
Changes after the reference date are generally not considered. However, specific provisions in an applicable (or to be agreed upon) social plan should be noted. More on this later in the blog series! Also, consider employees who are of retirement age at the time of the dismissal application.
Clear communication: how do you approach it?
Ensure employees are informed in time about the reference date. Explain how this date was chosen and what it means for individual employees.
Tip of the day
A carefully chosen reference date and clear communication prevent problems. Once again: “preparation, transparency, and clear explanation” make the difference. Fewer discussions or procedures, less delay, and more clarity.
Would you like advice on your restructuring? Feel free to send me a message.
