Planning on a merger, acquisition or division of (part of) a business in the Netherlands or any other EU country? Then be aware of the EU law which sets out the strong position of employees in case of a transfer of undertaking (Directive 2001/23/EC). Russell Advocaten will inform you of the EU law on transfer of undertaking and the consequences thereof by a series of newsletters. This time: Obligation to inform employees.
The employer is obliged to inform the employees who are involved in the transfer of undertaking “in good time” on the following matters:
The information obligation extends to all employees concerned, including those who are not transferred themselves. The information obligation rests on the transferor as well as the transferee.
Dutch law does not prescribe a particular term which is considered to be “in good time”. However, it is relevant that the employees are informed at such a time when the decision on the transfer is not yet definitive and the date of transfer has not yet been fixed (depending on the circumstances of the case, even a term of approximately two months might be sufficient).
Failing to inform the employees in good time will not have any consequences for the validity of the transfer of undertaking, but might result in liability of the employer (transferor and/or transferee) to pay damages due to an unlawful act. Furthermore the employees are allowed to derive rights from the given information regarding the transfer of undertaking and can address the employer based on “good employment practice” in case the information appears to be incorrect.
Would you like to receive more information about the EU law on transfer of undertaking and the consequences thereof? Or do you have any other questions on employment law? Please contact us:
The salary thresholds for highly skilled migrants and European Blue Card holders are adjusted annually. What will be the amounts for 2026? Also, stricter rules for the highly skilled migrant scheme are proposed. What might change?
On-call contracts offer many advantages for both employers and on-call employees. However, there are also a few rules that they need to take into account. What are they?
What shall we do with the drunken employee? Sack him? That isn’t always allowed. Alcohol abuse may be the result of an addiction and in that case the prohibition on termination during illness may apply. What do you have to take into account when dismissing an employee due to alcohol consumption?
24 November 2025 was Equal Pay Day in the Netherlands: the day of the year when men have earned on average as much as women in a whole year. How can the European Directive on wage transparency ensure that men and women are paid equally?
Almost all companies now use some form of AI. This means that they may be subject to the prohibitions and regulations set out in the European AI Act. How can you ensure that you comply with these rules?
The statutory minimum hourly wage changes every six months. What are the new amounts as of 1 January 2026?
