An employer may only terminate an employment contract if there is areasonable groundandreinstatementis not possible (Article 7:669 of the Dutch Civil Code). In this article we list thegrounds for dismissal, theroutes(UWV or subdistrict court),alternatives(settlement agreement) and importantpitfallsfor you.
the legal grounds for dismissal (overview)
The law lists the following grounds exhaustively. Often one main ground is put forward per case; Sometimes the judge can apply acumulative ground (i-ground)if several grounds together are insufficient but in combination they are sufficient.
dismissal for economic reasons (a-ground)
Reorganization, structural decay of work, cost reduction, business closure, automation, location closure.long-term disability (b-ground)
Illness > 2 years, reintegration obligation fulfilled, relocation not possible.dysfunction (d-ground)
Inadequate performance despite timely identification, improvement plan, coaching and real chance of improvement.culpable act or omission of employee (e-ground)
For example, theft, fraud, serious violation of regulations, refusal to work, violation of privacy/confidentiality, aggression.disrupted employment relationship (g-ground)
Durable, serious disruption; recovery is not expected; mediation/measures without results.other grounds (h-ground)
Residual category for situations that do not fit into the other boxes but still justify termination.cumulative ground (i-ground)
The sum of, among other things, d/e/g can lead to dismissal; judge may awardfair increase.
In addition, there are:frequent absenteeism due to illness with unacceptable consequences(c-ground) andconscientious objections(f-ground).
Immediate dismissalis a separate, immediate termination forurgent reason(see below).
routes for termination
1) termination with permission from the UWV
When?Business economics (a) or long-term disability (b).
Requirements:correct business economics substantiation or reintegration file,reflection principle,redeployment investigation,termination prohibitionsrespect.
After permission:cancellation withnotice period(can be settled).
2) dissolution by the subdistrict court judge
When?Dysfunction (d), culpable conduct (e), disturbed relationship (g), other (h) or accumulation (i).
Requirements:well-constructed file (performance reviews,improvement process, warnings, mediation, etc.).
Consequences:award oftransition compensation; possibly alsofair compensationin the event of seriously culpable actions by the employer.
3) termination by mutual consent (settlement agreement)
When?If the parties want to divorce by mutual agreement.
Note to employee:reflection period 14 days, neutral wording of reason, correct final settlement,Unemployment Insurance(no culpable unemployment), agreement abouttransition compensation, exemption from work, non-competition/solicitation clause, certificate.
4) cancellation without permission (special cases)
Probationary period: both parties can cancel immediately.
Immediate dismissal: forurgent reason(immediately, without delay, weighing of interests). High risk of procedures; evidence is crucial.
Pension/AOW: cancellation against the AOW/pension date if legally stipulated.
Bankruptcy: curator can terminate with a shortened term.
end by operation of law: fixed term
A contract for a fixed term endsautomaticallyon the end date. Please note:
notification obligationat ≥ 6 months (at least 1 month in advance).
chain arrangement: after a maximum of 3 temporary contracts or 3 years, apermanentcontract is often created (unless there is a collective labor agreement deviation).
interim terminationis only possible ifhas been agreed in writingand with the correct route/term.
transition compensation and reimbursements
Transition compensation: due in the event of termination/dissolution or non-renewal at the employer's initiative (also in the event of reorganization).
No transition paymentin the event of seriously culpable conduct by the employee (subject to fairness).
Fair compensation: in addition to transition compensation in the event ofseriously culpableactions of the employer or unfair summary dismissal.
Final settlement: holiday days/money, overtime, bonus scheme in accordance with agreements.
termination prohibitions and reassignment
Termination prohibitionsincluding during illness (first 104 weeks), pregnancy and maternity leave, works council member, discriminatory grounds.
Reassignment obligation: suitable position within a reasonable period (training if necessary). Without a demonstrable relocation investigation, the case fails.
practical examples (short)
dysfunction without a plan→ dissolution refused: no concrete improvement plan, no evaluations.
disturbed relationship→ dissolution assigned: long-term escalated conflict, failed mediation, recovery unlikely.
cumulation (i-ground)→ dissolution +extra compensation: combination of moderate dysfunction and disruption.
frequently asked questions
Is an employee always entitled to unemployment benefits with a settlement agreement?
Not automatic. Formulate the VSOWW-proof(no urgent reason, neutral reason, correct date/term).
Can I be immediately dismissed in the event of theft?
Only if there is aurgent reasonandimmediatelywill action and communication be taken. Have the file tested immediately.
Do I always have to do an improvement process in case of dysfunction?
Yes, unless the shortcomings are so obvious and serious that improvement is not realistic — that is exceptional. Usually required: plan, guidance, evaluations.
What if an employee becomes ill during a UWV procedure?
Checkcancellation prohibitions. The trajectory can be hit or stopped; alternatives are relocation or continuing later.
help from Arslan Advocaten
We help employers and employees withadvice, negotiation and procedures: UWV files, dissolution requests, VSOs, transition and fair compensation, and strategic file construction. Want to spar quickly? Contact us via the website; We immediately think along and determine the best route.