Dismissal Procedure

In the Netherlands, an employer cannot simply dismiss an employee. Strict rules and procedures apply that protect the employee. In this article you will learn which dismissal routes exist, which steps each route involves and what your rights are as an employee.

Overview of dismissal routes

Dutch dismissal law provides several routes for terminating an employment contract. The route the employer must follow depends on the ground for dismissal (ontslaggrond):

• UWV procedure — for economic reasons (reorganisation) or long-term incapacity for work (dismissal after 2 years of illness)
• Subdistrict court procedure (kantonrechterprocedure) — for personal grounds for dismissal (underperformance, disrupted working relationship, culpable conduct)
• Mutual consent — employer and employee enter into a settlement agreement (vaststellingsovereenkomst)
• Summary dismissal — only for an urgent reason (immediate termination)
• Probationary dismissal — during the probationary period, both employer and employee can terminate the contract immediately

Dismissal via the UWV

The employer must apply for a dismissal permit from the UWV in the following cases:

• Economic reasons — reorganisation, cutbacks, business closure
• Long-term incapacity for work — the employee has been ill for more than 2 years, recovery is not expected within 26 weeks, redeployment in a suitable position is not possible, and the employer has fulfilled their reintegration obligations

Steps in the UWV procedure

1. Application for a dismissal permit — the employer submits a written application to the UWV, including substantiation of the ground for dismissal.
2. Employee's defence — you are given 14 days to submit a written defence. In this defence you can contest the validity of the ground for dismissal.
3. Possible second round — the UWV may initiate a second round of hearing and counter-hearing.
4. Decision — the UWV aims to decide within 4 to 8 weeks, but in complex cases or with a second round the procedure may take longer. The permit is either granted or refused.
5. Termination — after the permit is granted, the employer may terminate the employment contract, observing the applicable notice period.

In case of reorganisation: the reflection principle (afspiegelingsbeginsel)

In the event of dismissal for economic reasons, the employer must apply the reflection principle (afspiegelingsbeginsel). This means that within each interchangeable position, employees are dismissed proportionally per age group. The "last in, first out" principle applies within each age group.

Dismissal via the subdistrict court (kantonrechter)

The employer must submit a dissolution request to the subdistrict court (kantonrechter) for personal grounds for dismissal:

• d-ground: underperformance (disfunctioneren)
• e-ground: culpable conduct or omission by the employee
• f-ground: refusal to work due to conscientious objection
• g-ground: disrupted working relationship (verstoorde arbeidsrelatie)
• h-ground: other circumstances (residual ground)
• i-ground: cumulative ground (combination of multiple partially established grounds)

Steps in the subdistrict court procedure

1. Petition — the employer submits a dissolution request to the subdistrict court (kantonrechter).
2. Statement of defence — you are given the opportunity to submit a written defence. In this defence you contest the ground for dismissal or file a counterclaim (for example, an equitable compensation).
3. Oral hearing — both parties are heard by the subdistrict court judge. This is your opportunity to present your case.
4. Ruling — the subdistrict court judge delivers a decision, typically within 2 to 4 weeks after the hearing. The judge either dissolves the employment contract or rejects the request.

In the case of dissolution on the i-ground (cumulative ground), the judge may award an additional compensation of up to 50% of the statutory severance pay (transitievergoeding), on top of the regular statutory severance pay.

Dismissal by mutual consent

The most common form of dismissal is via a settlement agreement (vaststellingsovereenkomst or VSO). Employer and employee jointly reach agreement on the termination and its terms.

Characteristics of mutual consent

• No review by the UWV or subdistrict court required
• Terms are freely negotiable
• You have a statutory cooling-off period of 14 days
• With correct wording, you retain your right to unemployment benefits (WW-uitkering)
• Generally faster and less burdensome than a formal procedure

Summary dismissal (ontslag op staande voet)

Summary dismissal (ontslag op staande voet) is the most drastic form of dismissal. The employment contract ends immediately, without a notice period. Summary dismissal is only valid if three conditions are met:

1. There is an urgent reason (dringende reden) (such as theft, fraud, violence, refusal to work)
2. The dismissal was given without delay (onverwijld) (immediately after discovery of the urgent reason)
3. The urgent reason was communicated without delay to the employee

If the summary dismissal stands and there is seriously culpable conduct on your part, you have no right to statutory severance pay (transitievergoeding) and possibly no right to unemployment benefits. However, if the dismissal is annulled or declared invalid by the court, the right to compensation may be restored. You can challenge the dismissal at the subdistrict court within 2 months.

Dismissal during the probationary period

During the probationary period (proeftijd), both employer and employee can terminate the employment contract immediately, without a dismissal permit. The employer does not need to give a reason in advance, but as an employee you can request a written explanation (Article 7:676(2) of the Dutch Civil Code). The probationary period is:

• Maximum 1 month for a contract of 6 months to 2 years
• Maximum 2 months for a permanent contract or a contract of more than 2 years
• No probationary period for a contract of 6 months or shorter

Dismissal bans (opzegverboden)

Statutory dismissal bans prohibit the employer from terminating the contract in certain situations:

• During illness — the first 2 years of illness (unless the employee refuses to cooperate with reintegration)
• During pregnancy and maternity leave
• During military service
• As a (former) member of the works council or employee representative body — this dismissal ban applies during membership and for up to 2 years after its end
• On account of trade union membership
• On account of taking parental leave

Dismissal bans do not apply during the probationary period and are formally not applicable in the case of a settlement agreement (but be extra vigilant if a dismissal ban applies). In the case of summary dismissal, dismissal bans do not apply in principle, but if the stated urgent reason is connected to the protected situation (for example illness), the dismissal may be voidable on that ground. There must be no abuse of the right of dismissal in order to circumvent a dismissal ban.

Compensation upon dismissal

Upon dismissal, you may be entitled to the following forms of compensation:

• Statutory severance pay (transitievergoeding) — 1/3 of your gross monthly salary per year of service (statutory right)
• Equitable compensation (billijke vergoeding) — additional compensation in the event of seriously culpable conduct by the employer
• Compensation in the settlement agreement — freely negotiable, typically at least equal to the statutory severance pay
• Fixed compensation (gefixeerde schadevergoeding) — if the employer does not observe the notice period

Read more in our article on dismissal compensation (ontslagvergoeding).

Objecting to dismissal

As an employee, you have several options to object to dismissal:

After the UWV procedure

If the UWV has granted the dismissal permit and the employer has terminated the employment contract, you can submit a request to the subdistrict court within 2 months after the day on which the employment contract ended to annul the termination or claim equitable compensation (Article 7:686a(4) of the Dutch Civil Code).

After a subdistrict court ruling

You can lodge an appeal against a ruling of the subdistrict court within 3 months after the date of the ruling at the Court of Appeal (gerechtshof) (Article 7:683 of the Dutch Civil Code).

After summary dismissal

You can submit a request to the subdistrict court within 2 months to annul the dismissal or claim equitable compensation.

In the case of a settlement agreement

After signing a settlement agreement, you have a cooling-off period of 14 days to revoke the agreement in writing.

Practical tips

1. Never sign under pressure — you are not obliged to sign immediately. Take the time to assess the situation.
2. Seek legal assistance — have your situation assessed by a lawyer or employment law attorney (arbeidsrecht advocaat).
3. Keep everything — save all correspondence, emails, WhatsApp messages and letters. This may serve as evidence later.
4. Know your deadlines — short statutory deadlines apply in dismissal cases. Do not let them expire.
5. Check your unemployment benefit rights — make sure the dismissal procedure does not jeopardise your unemployment benefit rights.
6. Calculate your statutory severance pay (transitievergoeding) — know the minimum amount you are entitled to.

Frequently asked questions