Dismissal

Employers and employees may become embroiled in industrial disputes, for example about how the employee should perform their work. We recommend that you first try resolving the dispute, either together or guided by a mediator. If you are still unable to resolve the situation, terminating the employment contract may be the best solution for both parties.

An employer may decide to terminate the employment contract if there are reasonable grounds to do so and redeployment to another suitable position is not possible within a reasonable period of time. Alternative procedures must be followed in this case depending on the situation, e.g. taking legal action or contacting UWV (the Employee Insurance Agency in the Netherlands). Termination of employment through a settlement agreement is possible in all situations, provided both parties agree on the terms and conditions.

Employees are entitled to a transition allowance if the employment contract:

• expires following termination by the employer;

• expires following termination at the employer's request;

• is not renewed following expiry by operation of law (i.e. automatic expiry) at the employer's instigation.

All employees are entitled by law to a transition payment, irrespective of whether they have a temporary or permanent employment contract. We can provide you with the expertise required to determine whether a transition payment applies in your case and the amount of this payment.

If an employee has engaged in serious misconduct, their employer may terminate their employment with immediate effect. This is known as ‘summary dismissal’, and under Dutch law it is possible only if there are compelling reasons (dringende reden). This is also known as ‘dismissal for cause’. One condition is that the employer must terminate the employment shortly after the misconduct took place.

Employees who disagree with their summary dismissal and intend to fight this decision in order to retain their job must submit a request to the subdistrict court (kantongerecht) to have the dismissal annulled (i.e. rendered legally invalid).  Summary dismissal is the most severe measure available to employers under Dutch employment law, as employees whose employment is terminated in this way lose their income as of immediately and are not entitled to unemployment (WW) benefits. If you are unsure whether summary dismissal is the best option in a particular case, feel free to contact us for advice.