LABOUR LAW
Outplacement
An employee is leaving after a dismissal, a reorganisation, or a settlement agreement, and needs support finding a new role. Outplacement combines career coaching, job-search support and sometimes training, usually organised and paid for by the employer. Sørensen Advocaten advises on outplacement clauses, budgets and how outplacement connects to the transition payment.
In brief
- Outplacement is career support for an employee who is leaving, aimed at finding new work.
- It is usually agreed in a settlement agreement or a social plan, not required by law by default.
- Outplacement costs can sometimes be set off against the transition payment, under conditions.
- A CAO or social plan can make outplacement mandatory in a reorganisation.
What is outplacement?
Outplacement is guidance toward new work for an employee whose employment is ending: CV and interview coaching, a search strategy, sometimes psychological support and training. A specialised outplacement agency usually carries out the actual coaching; the employer arranges and funds it.
Outplacement is not a legal right on its own. It becomes binding once it is agreed, for example in a settlement agreement, an individual arrangement, or a social plan tied to a reorganisation.
Outplacement in a settlement agreement
Outplacement is a common negotiating point alongside the transition payment, the notice period and references. Employers use it to support a smooth exit; employees use it to strengthen their position for finding new work quickly.
We draft and review the wording: budget, provider, duration and what happens if the employee finds new work before the outplacement programme ends.
Outplacement and the transition payment
Under strict statutory conditions, employers can deduct costs for measures aimed at preventing unemployment or shortening it, including outplacement, from the transition payment. The costs must be specified in advance and agreed with the employee in writing.
We check whether a proposed deduction meets those conditions, for employers who want to apply it correctly and for employees who want to know whether a deduction is valid.
Who pays, and how much?
There is no fixed price for outplacement; budgets vary with seniority, sector and the scope of the programme. The employer typically pays directly to the outplacement agency, separate from the transition payment, unless the parties agree to a deduction.
Employer obligations and best efforts
Once outplacement is agreed, the employer generally has an obligation of best efforts: arranging a suitable programme and paying for it, not guaranteeing a new job. We record that distinction clearly, so expectations on both sides match what was actually promised.
Choosing a provider
Employers sometimes work with a fixed outplacement partner; employees sometimes prefer to choose their own agency. Both are possible, provided the budget and scope are agreed in writing beforehand.
Outplacement in a reorganisation or social plan
In a collective reorganisation, a social plan often makes outplacement standard for affected staff, sometimes negotiated with the works council or a trade union under the applicable CAO. We help employers design a social plan that is workable and defensible, and help employees understand what a social plan actually entitles them to.
When should you involve Sørensen?
When negotiating a settlement agreement or social plan that includes outplacement, when assessing whether outplacement costs can be deducted from the transition payment, or when a dispute arises over what was promised versus what was delivered.
We advise both employers and employees, and connect outplacement to the broader dismissal or reorganisation file.
A practical first step
Negotiating an exit that should include outplacement, or unsure whether a proposed deduction is valid? Get in touch via contact or call +31 10 249 24 44.
Frequently asked questions
Is outplacement mandatory?
Not by default. It becomes an obligation once it is agreed in a settlement agreement, individual arrangement, CAO or social plan.
Can outplacement costs be deducted from the transition payment?
Sometimes, under strict statutory conditions and only when agreed with the employee in writing beforehand. We check whether a proposed deduction is valid.
What if outplacement does not lead to a new job?
The employer's obligation is normally one of best efforts, not a guaranteed result, unless the parties agreed otherwise.
Can I choose my own outplacement agency?
Often yes, provided the budget and scope are agreed with the employer in advance.
Do you review outplacement clauses?
Yes, for both employers and employees, as part of a settlement agreement or social plan.