AI as a Reorganisation Catalyst

AI is advancing rapidly into organisations. It functions not only as an efficiency tool, but also as a driving force for drastic changes in processes, jobs and organisational structures. In the media we find more and more reports of AI constituting an important reason for collective redundancies. General Counsel are faced with the challenge of guiding this technological transformation in a way that is legally correct as well as strategically well-considered. 

The Dutch dismissal system is a strict and closed system. Rules for dismissal for commercial reasons are defined in Section 7:669 subsection 3 under (a) of the Dutch Civil Code. AI does not constitute a new ground for dismissal, but a representation of the commercial ground of ‘technological or organisational changes’. It appears from the UWV Implementation Rules (July 2025) that this ground includes, for example, other working processes such as digitisation, automation or mechanization. Although AI is not mentioned in so many words here, in practice it is included. 

In the event of a reorganisation on the basis of technological or organisational changes, an employer has to make a plausible case for it to the UWV that jobs will structurally become redundant in order to guarantee effective business operations. Proving this is sometimes hard, because headcount reduction as such is not a valid objective, but only a potential consequence. This requires meticulous documentation of market developments, customer behaviour, internal inefficiency, financial prognoses, and a clear explanation of the working process after the implementation. 

Here, the UWV will also apply the regular review framework for dismissals for commercial reasons, as specified in the Implementation Rules (July 2025 version). Concretely, this means that the employer has to demonstrate the following:

1. Structural job redundancies (rather than, for example: “AI makes us more efficient”, but which jobs will disappear concretely, why, and why is this sustainable?);
2. Causal link between AI and redundancy (e.g. which tasks are taken over by AI and why does this result in fewer FTE, rather than just in a shifting of tasks?);
3. Correct application of the principle of proportionality; and
4. Compliance with the statutory re-employment obligation. Incidentally, AI may contribute to the performance of the principle of proportionality and education (if any) as part of that re-employment. 

We know from practice that the UWV will not step into the entrepreneur’s shoes by performing a technical review of the AI business case. However, this does not mean that automating work leads automatically to jobs becoming redundant. The latter follows also from case law. Courts require a direct and concrete link between the problem in the organisation, the technological solution chosen, and the impact on the specific job. Another aspect to this review is that AI systems tend to eliminate tasks not fully; human oversight remains mandatory, and sometimes new jobs come into being. 

AI impacts reorganisations in various ways. Examples are replacing tasks or allowing tasks to be replaced, but also a shift in the necessary skills profile, for example from generalist to specialist. These developments may lead to efficiency gains, with fewer people doing more or different jobs. A key role in this is reserved for General Counsel. Not only to assess whether the reorganization will stand up in court, but also to steer strategic choices in certain directions. 

It is important to mention here that AI may support the reorganization by document analyses, scenario models, job comparisons and calculations, but that it is not suitable for legal decision-making, for example. Data quality, bias, and a lack of context make human checks essential. 

AI is not only changing organisations, but also the profession of General Counsel. Reorganisations are becoming more data-driven and strategically more complex. This calls for a multidisciplinary role: that of legal advisor, risk director, data consultant and sparring partner of the business. Everyone who invests in data management, AI literacy and a future-resistant job matrix now will come out stronger, in both legal and organisational terms.