Dutch dismissal law - what are the rules?

Reasons for dismissal under dutch law

There can be various reasons why an employer wants to dismiss an employee. Examples of dismissal reasons in dismissal law:

• business economic reasons;
• Dysfunctional employee;
• disturbed working relationship;
• breach of trust;
• illness/burnout
• theft, frequent tardiness, aggressive behavior, alcohol use (summary dismissal).

It is important to note that the employee (almost) always has the opportunity to defend against the dismissal. The dismissal case will be reviewed by the (subdistrict) court or the UWV. Ask our specialists whether dismissal is possible in your case.
Below we will briefly discuss when and how employment contracts can end in the Netherlands. If you have any questions about this or would like help, you can always ask our specialists for advice. First advice = Free

a. Probationary period in dismissal law

During the stipulated probationary period, either party may unilaterally terminate the employment contract with immediate effect without cause. If a probationary period has been stipulated, the employment contract may also be terminated by either party before the actual commencement of work.

b. End of the fixed-term employment contract in dismissal law

The fixed-term employment contract ends by operation of law when the time for which it was entered into has expired, unless notice of termination is prescribed by collective or individual agreement.
The extended fixed-term contract also ends by operation of law. The
contract may be extended twice provided that the total contract duration does not exceed three years. With a third extension, or if the duration of the contract exceeds three years, the employment contract is automatically converted into an employment contract for an indefinite period of time and notice of termination is required.

c. Retirement age in dismissal law

The employment contract ends by operation of law if this is included in the employment contract when the person concerned has reached retirement age. If this has not been agreed upon, the employer can terminate the employment contract with due observance of the applicable notice period towards or after the day of retirement age. Permission from the UWV is not required for this termination.

d. Mutual agreement, settlement agreement.

If employer and employee expressly agree to a termination of the employment contract and both wish to do so, there is a termination by mutual agreement. For this purpose, the parties usually enter into a written termination agreement or settlement agreement.

e. Instant dismissal in dismissal law

If an urgent reason has occurred, the employment contract can be terminated unilaterally with immediate effect without having to comply with the notice provisions. This is called summary dismissal. For summary dismissal to be valid, the employee must be informed of the reason immediately and the dismissal must be granted immediately thereafter.
However, the "urgent reason" must also pass the judge's strict test. In other words, the employee must have made a very serious mistake in order for the judge to honor the immediate dismissal. This could include theft or violence in the workplace. A summary dismissal given too lightly does not lead to the end of the employment contract. In the event the latter happens to you as an employee, notify the employer by registered letter that you dispute the legality of the summary dismissal and that you remain available to perform the work. If the employer does not withdraw the dismissal, you can initiate wage claim proceedings with the help of our lawyers.

f. Termination - The UWV procedure

In principle, either party can terminate the employment contract by giving notice. However, for a legally valid termination, our dismissal law requires the employer to obtain a dismissal permit. Once a permit has been obtained, termination is possible and the applicable notice period must be observed. Failure to comply with this term does not lead to nullity of the dismissal, but to liability for damages.

The dismissal permit is applied for by the employer at the UWV ( see also UWV Dismissal ). The employer must properly substantiate the dismissal request. Reasons for the dismissal request can be business economic circumstances or the employee being sick for more than 2 years.

For each reason, dismissal law imposes certain requirements. For example, in the case of a request for dismissal for business economic reasons, the request must comply with what is called the separation principle. This means that of the employees with the same position in the same age group, in principle, the one with the shortest employment is the first to be considered for dismissal.
It goes without saying that the employee must study the permit applications carefully (or have them studied) to check the defense possibilities. Our legal experts can help you with this and, if necessary, put up a defense for you. Notice: employee's who are ill can not be dismissed in most cases. Read: dismissal while being ill.

g. Dissolution of the employment contract by the court in dismissal law

Both the employee and the employer are entitled to apply to the subdistrict court with the request to dissolve the employment contract on a date to be determined by the subdistrict court. However, there must be a legally recognized reason for dissolution. Ask our attorneys and lawyers whether this is the case for you.

Common misconceptions about dismissal law

Finally, below are four common misconceptions about dismissal law. These examples show that a good knowledge of dismissal law can prevent (expensive) mistakes.
1. the ww benefit is always 70% of the last salary. It is not: the first two months of unemployment it is 75%. Moreover, there is a maximum to the monthly ww benefit.
2. in case of instant dismissal, employee is entitled to ww benefit. This is emphatically not the case!
3. If the UWV grants a dismissal permit, the UWV also determines a severance payment. A (painful) misunderstanding. The UWV does not grant severance pay.

Go for the best result! Ask our specialists for advice

For assistance with dismissal and questions about dismissal law, please contact our lawyers and attorneys. To do so, call 0900 - 123 73 24 or email us. We will achieve the optimal result for you. The first advice = FREE.