Common use of Redundancy scheme Clause in Contracts

Redundancy scheme. Redundancy scheme 1. A redundancy scheme is any scheme that mitigates for potential economic, social and/or legal consequences for employees arising from an organizational change. 2. The employer can agree in advance with the trade associations involved in the collective labour agreement that the discussions of a redundancy scheme will be left to the employer and the employee representatives. 3. Provided that the redundancy scheme is given the status of a collective labour agreement, agreements can also be made as part of the redundancy scheme, duly considering the opportunities offered by the Dutch Work and Security Act. Deviations from the law can concern such aspects as the 'age bracket' principle (redundancies affecting all age groups of employed staff equally) (up to a maximum of 10% of the employees), the amount of the transition allowance and possibly other allowances, provisions about education, outplacement, terms of notice, supplementary agreements etc. 4. If a redundancy scheme has been agreed in a company in consultation with the trade association(s) involved in the collective labour agreement, article 9.3 does not apply.