Dutch employment law imposes stringent requirements for terminating employment contracts, ensuring balance and fairness.
Preventive Dismissal Assessment
Employers cannot unilaterally terminate a contract without prior approval from the Employee Insurance Agency (UWV) or the Subdistrict Court. Grounds for termination include economic necessity, long-term illness, inadequate performance, or misconduct. Each ground has specific legal criteria, and approvals are not granted lightly.
Transition Allowance
Employees dismissed at the employer’s initiative are entitled to a transition allowance. This allowance is calculated as one-third of the monthly salary per year of service.
Immediate Dismissal
For urgent reasons, such as gross misconduct, employers can terminate the contract without notice. This requires immediate action and detailed documentation. Courts review such dismissals strictly, given their significant consequences for employees.
Termination by Mutual Consent
Mutual consent provides a flexible alternative to formal dismissal procedures. Arrangements such as severance pay, notice periods, and post-contractual clauses are documented in a settlement agreement. Employees have a statutory reflection period to reconsider their consent.
Preventive Dismissal Assessment
Employers cannot unilaterally terminate a contract without prior approval from the Employee Insurance Agency (UWV) or the Subdistrict Court. Grounds for termination include economic necessity, long-term illness, inadequate performance, or misconduct. Each ground has specific legal criteria, and approvals are not granted lightly.
Transition Allowance
Employees dismissed at the employer’s initiative are entitled to a transition allowance. This allowance is calculated as one-third of the monthly salary per year of service.
Immediate Dismissal
For urgent reasons, such as gross misconduct, employers can terminate the contract without notice. This requires immediate action and detailed documentation. Courts review such dismissals strictly, given their significant consequences for employees.
Termination by Mutual Consent
Mutual consent provides a flexible alternative to formal dismissal procedures. Arrangements such as severance pay, notice periods, and post-contractual clauses are documented in a settlement agreement. Employees have a statutory reflection period to reconsider their consent.
This blog was written by Jordi Rosendahl, attorney-at-law and partner at Lexence.
Jordi Rosendahl specialises in employment law and dismissal law. He advises employers, directors and employees on their position under employment law and assists them in negotiations and during procedures at UWV or the District Court.
For inquiries, contact Jordi Rosendahl at j.rosendahl@lexence.com or +31 6 5176 2726.
Jordi Rosendahl
