In the event that an employer wishes to dismiss one or more employees for economical reasons it is required to comply with the rules stipulated in the Dutch Dismissal Decree Article 4.2 of the Dismissal Decree requires that the reflection principle is applied if employees are dismissed on economic grounds. On the basis of the reflection principle, employees who hold interchangeable positions are divided into four age groups, within which it is necessary to determine which employees entered the company’s employment most recently. Those employees will be first that qualify to be made redundant.
As from April 1, 2014 the reflection principle has changed: the highest age group (55 years and over) now includes ages 55 up to the state pension age. Further to this amendment old age pension beneficiairies are the first employees to be eligible for dismissal.
The amendment to the Dismissal Decree prevents that employees will have to make way for old age pension beneficiairies, who do not rely on employment to generate income. According the notes to the amendment the distinction by age is thus justified on objective grounds.