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Dismissal in the Netherlands, what are your rights and options?

Laatst bijgewerkt: 28-08-2024 10:44:03

Persbericht - When you have to deal with a dismissal, a lot comes at you and you have the necessary questions. When is dismissal possible in the Netherlands? Is there a right to severance pay?

Options for dismissal in the Netherlands

The following text will briefly address when and in what manner an employment contract in the Netherlands can end. If you have any questions or need legal assistance, for instance in case of a redundancy dismissal, do not hesitate to email or call our specialists. The first consultation is FREE.

a. Probationary period
During the agreed probationary period, either party can unilaterally terminate the employment contract with immediate effect and without giving a reason.
If a probationary period is agreed upon, the employment contract can also be terminated by either party before the actual commencement of work. For termination during the probationary period, it is essential that the agreed probationary period is valid. Please contact us by phone or email for more information.

b. Fixed-term employment contract
The fixed-term employment contract ends automatically when the agreed period has expired, unless termination is prescribed by a collective labor agreement (CAO) or an individual agreement.
The extended fixed-term contract also ends automatically. The contract can be extended twice, provided that the total duration does not exceed three years. On the third extension or if the total duration exceeds three years, the employment contract is automatically converted into an indefinite contract, and termination with the corresponding approval from the Employee Insurance Agency (UWV) is necessary.

c. Retirement age
If termination of the employment contract at the retirement age is agreed upon in the contract, this will generally suffice to state that the employment contract ends automatically when the person reaches the retirement age.

d. Mutual agreement
If both parties explicitly agree to terminate the employment contract and wish to do so, it is considered a termination by mutual agreement. Usually, a written settlement agreement is entered into by the parties. If properly drafted, such an agreement is eligible for unemployment benefits (ww-veilig). You can order a legally correct example of a settlement agreement from us.

e. Termination by notice
Both parties can generally terminate the employment contract by giving notice. However, a valid dismissal permit is required for the employer to give notice. After obtaining the permit, termination is possible, and the applicable notice period must be observed. Failure to observe this notice period does not make the dismissal void but may lead to a liability for damages.
The dismissal permit can be requested from the Employee Insurance Agency (UWV). It goes without saying that this request must be well substantiated. A dismissal permit can be requested for economic reasons or if the employee has been sick for more than two years. Dismissal due to poor performance of the employee can only be requested from the subdistrict court.

f. Summary dismissal
If there is a compelling reason, the employment contract can be unilaterally terminated with immediate effect without observing the notice provisions. This is called summary dismissal.
For a valid summary dismissal, the reason must be immediately communicated to the employee, and the dismissal must be granted immediately afterward. However, the “compelling reason” must also withstand strict scrutiny by the court. In other words, the employee must have seriously breached the employment contract (e.g., theft, violence, or fraud) for the court to uphold a summary dismissal. Therefore, always seek advice from our specialists.

g. Termination of the employment contract by the court
In case of a dismissal procedure, either party is authorized to request the subdistrict court to terminate the employment contract. However, this cannot be done for economic reasons, as that falls under the jurisdiction of the UWV. The subdistrict court can, for example, terminate the contract in case of a disrupted working relationship, misconduct by the employee, or poor performance. In most cases of termination based on these grounds, the subdistrict court will award compensation in favor of the employee and at the expense of the employer. This compensation is usually determined in accordance with the rules of the transition payment.

Avoid costly mistakes, seek legal assistance from our dutch dismissal specialists

Our office Recht & Raad can provide legal assistance to employees and employers through our employment lawyers and jurists. We have extensive experience (over 25 years) in dismissal cases and have helped many clients effectively. Do you want to receive professional assistance too?   Or do you want to have your settlement agreement checked?          Call 020 6890 863 or email us.