News item | 11-07-2025 | 15:00
If a company goes bankrupt, it has major consequences for employees. With the bill on the transfer of business in Bankruptcy (WOVOF), State Secretary for Legal Protection Struycken and Minister of Social Affairs and Employment of Hijum employees want to better protect employees if a bankrupt company makes a restart. The bill also creates an extra threshold against abuse of bankruptcy to bypass dismissal protection of employees. The Council of Ministers today agreed to submit the bill for advice to the Council of State.
State Secretary Struycken: “At the moment, employees are well protected outside of a bankruptcy, but employees are losing this protection in the event of a bankruptcy. With this law we bring these differences more balanced with each other in the event of a restart from bankruptcy.”
Better protection of employees
It is mandatory to take most employees with a restart. In this way, employees are better protected and there will be an extra threshold for the abuse of the bankruptcy procedure. The restart may no longer be a reason for not offering employees an employment contract. At the moment it also applies that entrepreneurs who take over a bankrupt company can choose which employees they take with them. Entrepreneurs can now also in principle determine which employment conditions they offer these employees. That changes with the new bill. The bill also regulates the right of the works council, staff representation and the personnel meeting to provide advice on the intended transfer of the company.
Objective selection
Business economic reasons such as a reduction in the number of customers, relocation of the company or automation may still be a reason to take fewer employees. In these cases there is also extra protection with the bill. If not all employees are included, selection must take place based on objective criteria. The selection thus takes place in a similar way as if dismissal for business economic reasons outside a bankruptcy. The most vulnerable employees are also eligible for an employment contract, where they often fall outside the boat. The examining magistrate who is involved in the bankruptcy determines whether the selection is objectively and transparent. This gives the employee the same protection as much as possible as outside of bankruptcy. The rules do not apply to small companies with fewer than 20 employees, unless the purchasing entrepreneur chooses for this.
Automatically expiry of non -competition clause
The bill also includes the automatic expiration of a non -competition clause at the end of an employment contract if an employee is not offered an employment contract before that time. This way, employees who do not receive an employment contract can work in a different place as quickly as possible. At the moment, a contractual competition clause does not lapse in the event of bankruptcy.