A bankruptcy of your employer is a drastic event. From one day to the next, you lose your job, your security and sometimes a large part of your income. Yet this does not have to be the end of a great career. On the contrary: for many people, it is the starting point of a new, better direction. In this article, we answer the most frequently asked questions about outplacement in case of bankruptcy, so you know exactly where you stand and what steps you can take.
Whether you have just been told that your employer has gone bankrupt or you have been worried about the future of your company for a while, the information below will help you get clear on what outplacement entails, what your rights are and how to get back to work as soon as possible.
What is outplacement and when are you entitled to it?
Outplacement is a counselling programme where a professional career coach helps you find a new, suitable position as quickly and purposefully as possible after losing your job. The path focuses on self-insight, career orientation, application skills and personal development. Outplacement is usually offered by employers in cases of reorganisations, dismissal or termination of employment.
In most cases, you are entitled to outplacement when you lose your job involuntarily. This could be via a settlement agreement, after a dismissal procedure via the UWV or the subdistrict court, or in the case of collective dismissal as a result of a reorganisation. Outplacement is then included as part of the redundancy agreement or social plan. In case of bankruptcy, however, the rules are slightly different; we explain this further in the following sections.
What happens to your job if your employer goes bankrupt?
If your employer goes bankrupt, in most cases your employment ends quickly. The receiver, who is appointed by the court to handle the bankruptcy, has the right to terminate employment contracts with up to six weeks' notice, regardless of the notice period in your contract.
This means that, as an employee, you may find yourself without a job in a short period of time. At the same time, the UWV takes over a number of financial obligations of the bankrupt employer through the so-called wage guarantee scheme. These include back wages, holiday pay and wages over the notice period. It is wise to apply for this with the UWV as soon as possible so that you do not miss out on any income during the transition period.
Are you entitled to outplacement in bankruptcy?
In the event of bankruptcy, you are not automatically entitled to outplacement in most cases. Outplacement is normally agreed in a social plan or settlement agreement, but in a bankruptcy there are rarely funds available to finance it. The trustee's task is to pay the creditors as well as possible, and an outplacement payment is not a priority in this.
Yet there are situations where outplacement is available. If a social plan was in place before the bankruptcy, the agreements laid down therein can sometimes still apply. In addition, the UWV offers support through the Unemployment Insurance Act (WW) and additional reintegration services in some cases. It always pays to investigate, as the possibilities are greater than many people think.
How does post-bankruptcy outplacement work in practice?
An outplacement process after bankruptcy works in the same basic way as other forms of dismissal. The process starts with an intake where, together with a career coach, you determine where you stand, what you want and which direction best suits you. From there, a personal plan is drawn up to suit your situation and pace.
The main components of an outplacement process
A good outplacement process usually consists of the following elements:
- Self-insight and talent research: You map out who you are, what you can do and what you want. This forms the basis for all subsequent steps.
- Career orientation: You explore which jobs and sectors suit you and what the job market looks like now.
- Practical job training: From writing a strong cover letter to practising interview techniques and strengthening your LinkedIn profile.
- Networking: You will learn how to actively use your network to discover opportunities that are not always publicly advertised.
- Guidance and coaching: A coach stands by you throughout the process, even at times when things get tough.
What sometimes makes an outplacement process after bankruptcy extra special is the emotional component. Bankruptcy is often unexpected and can bring feelings of uncertainty or loss. A good coach will help you not only with the practical steps, but also with regaining confidence in your own abilities.
Who pays for outplacement if your employer is bankrupt?
If your employer is bankrupt, in most cases there is no employer budget available for outplacement. Yet there are other funding options. The UWV sometimes offers reintegration support through the unemployment benefit. There are also sectoral funds, such as O&O funds (Training and Development Funds), which can finance career support for employees in certain industries.
Are you covered by a collective bargaining agreement (CBA)? If so, it is worth checking whether it contains agreements on career support in case of dismissal. In some situations, you can also buy an outplacement programme yourself and deduct the costs as a training expense in your tax return. Be well informed about the options that apply to your situation.
How to quickly find a new job after bankruptcy?
Acting quickly after bankruptcy is important, but it is equally important to act in a focused way. The key lies in combining clear direction with active steps in the job market. Start by updating your CV and LinkedIn profile, and get your story right: what have you done, what can you do and what are you looking for?
Practical tips to get started quickly
- Apply to the UWV for unemployment benefits as soon as possible, so that you have the financial room to make a targeted search.
- Activate your network. Tell those around you that you are available. Many vacancies are filled through via.
- Be open about the bankruptcy. Employers will understand that it was beyond your control and won't see it as a negative signal.
- Also use the period as an opportunity to reflect. Do you want to go in the same direction, or is this the time for a new step?
- Consider temporary work or an assignment as an intermediate step, so that you stay active while looking for the right next step.
Bankruptcy does not have to be a drag on your career. Many people look back on such a period in retrospect as a turning point that helped them choose more consciously for work that really suits them.
How Nieuwkans helps you after bankruptcy
At Nieuwkans, we understand that bankruptcy is a profound experience. We help you move from uncertainty to direction, with personal guidance that is fully tailored to your situation. Our outplacement programme for employees is always tailor-made: no standard programme, but an approach that suits who you are and what you want.
What we offer:
- A personal career coach to guide you from intake to new job
- Self-insight through evidence-based methods, including the BrainsFirst methodology
- Practical support on CV, LinkedIn, job interviews and networking
- Guidance at your own pace, focusing on both practical and personal aspects
- Coaching aimed at sustainable employability, so that you are also strong in the labour market in the long term
Want to know what we can do for you after bankruptcy? Contact us and we will discuss together what opportunities are available to you. Your next step starts here.