SØRENSEN LAWYERS works with US-led organizations to translate global restructuring decisions into Dutch-compliant execution.
When U.S. headquarters announces layoffs: what Dutch law requires
A global headcount reduction decided in the United States does not arrive in the Netherlands as an instruction to be carried out on the same timeline. Dutch employment law defines a sequenced process that must be completed before any dismissal notice can be issued. The earlier that process is understood and built into the planning, the more predictably the restructuring proceeds.
What the WMCO requires, and when it applies
The Wet Melding Collectief Ontslag (WMCO), the Dutch Collective Redundancy Notification Act, applies when an employer plans to dismiss 20 or more employees within a three-month period within a single UWV employment district. A UWV district corresponds broadly to a regional labor market area. Organizations with operations across multiple locations should assess the threshold separately for each district, a group-wide decision does not automatically trigger the WMCO at every Dutch location.
When the threshold is met, two obligations apply before any dismissal notice can be issued. First, a formal notification must be submitted to the UWV, the Dutch Employee Insurance Agency. Second, the relevant trade unions must be genuinely consulted, before the decision is final, not after the outcome has already been communicated. Informing unions of a completed decision does not satisfy the consultation requirement. Where that requirement is not met, affected employees can seek nullification of their dismissals, which carries reinstatement claims and continued salary obligations.
The one-month standstill period
Once the WMCO notification is filed, a mandatory standstill period of one month begins. No dismissal notices can be issued during this period. The UWV uses this time to assess whether the procedure is being followed correctly and whether the selection of employees is based on the statutory afspiegelingsbeginsel, a proportional, seniority-linked selection method applied within comparable job groups in the organization.
Departing from this method without adequate justification leaves individual dismissal decisions open to challenge.
The works council runs in parallel
Where the Dutch entity has a works council, a restructuring that triggers the WMCO will in many cases also require the works council’s prior advice under Article 25 of the WOR. These two processes, WMCO union consultation and works council procedure, typically run concurrently. Each carries its own requirements and timeline. Both must be planned from the outset if the restructuring is to proceed on schedule.
U.S. vs. Netherlands: key differences in collective dismissal
| United States | Netherlands | |
| Threshold | WARN Act: 50+ employees (100+ employer) | WMCO: 20+ employees within one UWV district |
| Notice period | 60 days advance notice to employees | 1-month UWV standstill; no dismissal notices during this period |
| Union consultation | Required where union contract exists | Required under WMCO regardless of union membership |
| Selection method | Employer discretion (subject to discrimination law) | Statutory afspiegelingsbeginsel applies |
| Works council | No equivalent statutory obligation | Article 25 WOR advice right for significant decisions |
Quick answers
Does the WMCO apply to Dutch subsidiaries of US companies?
Yes. The WMCO applies to any employer operating in the Netherlands, regardless of where the parent company is headquartered.
What is a UWV employment district?
A regional administrative area used by the UWV. The WMCO threshold of 20 dismissals is assessed per district. Organizations with employees across multiple districts must assess each separately.
What happens if WMCO notification is filed too late?
Individual employees can seek nullification of their dismissals. Courts can order reinstatement and continued salary payment where the procedural requirements were not met.
How long does the full WMCO procedure take?
The mandatory standstill period is one month from the date of notification. The total timeline, including works council advice where required, is typically eight to twelve weeks from the point at which planning begins.
When to involve legal counsel
Before the global announcement goes out: This is the right moment. The WMCO process must start before employees are informed of final decisions. Informal signals from managers can be treated as premature notice and create procedural complications before the formal process has begun.
Before the UWV notification is filed: The notification triggers the standstill period and sets the formal timeline. The content (including the grounds, selection method and union consultation approach) should be reviewed before filing.
Before dismissal notices are issued: Confirm that the standstill period has elapsed, that the afspiegelingsbeginsel was correctly applied, and that union consultation was substantive.
SØRENSEN LAWYERS works with US-led organizations to translate global restructuring decisions into Dutch-compliant execution. That means WMCO notifications, union consultation strategy, works council procedures, UWV filings and dismissal documentation, structured so the Dutch process runs in parallel with the global timeline, not after it.