Dismissal Procedure in the Netherlands — Complete Overview

Dutch employment law provides employees with strong protection against unfair dismissal. Your employer cannot simply fire you — they must follow one of several legally prescribed routes, each with its own rules, procedures, and safeguards. Understanding these routes is essential for protecting your rights and making informed decisions. This article provides a comprehensive overview of all dismissal procedures in the Netherlands, explains when each route applies, and outlines your rights at every stage.

Overview of dismissal routes in the Netherlands

Under Dutch employment law, there are six main ways in which an employment contract can be terminated. The applicable route depends primarily on the reason for dismissal. Since the Work and Security Act (Wet werk en zekerheid) of 2015, the law prescribes specific grounds for dismissal (listed in Article 7:669 paragraph 3 BW), and each ground is linked to a specific procedure.

The six routes are:

• UWV dismissal permit: for economic reasons (redundancy) and long-term illness (after 2 years).
• Subdistrict court procedure: for personal grounds such as dysfunction, disrupted working relationship, frequent absenteeism, or a combination of grounds.
• Settlement agreement: termination by mutual consent — the most common route in practice.
• Summary dismissal: immediate dismissal for an urgent reason (dringende reden).
• Dismissal during probationary period: termination during the trial period.
• End of fixed-term contract: expiry of a temporary contract.

Route 1: UWV dismissal permit (ontslagvergunning)

The UWV (Employee Insurance Agency) handles dismissal applications for two specific grounds: economic reasons (bedrijfseconomische redenen, Article 7:669 lid 3 sub a BW) and long-term incapacity for work (langdurige arbeidsongeschiktheid, Article 7:669 lid 3 sub b BW). This route is detailed in our separate article on the UWV dismissal permit.

Economic dismissal

Your employer may seek a UWV permit if economic circumstances require a reduction in the workforce. This includes situations such as financial decline, loss of orders, reorganisation, closure of a business unit, or technological changes that eliminate positions. The employer must demonstrate that the economic necessity is genuine and that the correct selection criteria (the "reflection principle" or afspiegelingsbeginsel) have been applied to determine which employees are selected for dismissal.

Long-term illness

If you have been unable to perform your work due to illness for at least two years, and there is no prospect of recovery within 26 weeks, your employer may apply for a UWV dismissal permit. The employer must also demonstrate that they have fulfilled their reintegration obligations during the two-year period and that no suitable alternative work (herplaatsing) is available. All three conditions must be met.

Procedure and timeline

The UWV aims to complete the procedure within 4 to 8 weeks, but complex cases or a second round of submissions may take longer. The employer submits a written application with supporting documents. You are given the opportunity to submit a written defence (usually within 14 days). In some cases, the UWV allows a second round of written submissions. The UWV's Dismissal Committee evaluates the application and issues a decision. If the permit is granted, the employer must terminate the contract with due observance of the applicable notice period (minus the procedure duration, with a minimum of one month).

Your rights

• You have the right to submit a written defence.
• You are entitled to the transitievergoeding (statutory severance pay).
• You can appeal to the subdistrict court within two months after termination.
• If the UWV denies the permit, the employer cannot terminate your contract through this route.

Route 2: Subdistrict court procedure (ontbinding door de kantonrechter)

For all other "personal" dismissal grounds, the employer must apply to the subdistrict court (kantonrechter) for dissolution of the employment contract. The personal grounds include:

• c. Frequent absenteeism (regelmatig ziekteverzuim): the employee is frequently ill (not long-term but repeatedly), causing unacceptable consequences for the business, and improvement is not expected.
• d. Dysfunction (disfunctioneren): the employee is unable to perform the work satisfactorily, the employer has informed the employee and provided opportunities for improvement, and the dysfunction is not caused by insufficient training or poor working conditions.
• e. Culpable conduct (verwijtbaar handelen): the employee has acted in a culpable manner such that the employer cannot reasonably be expected to continue the employment.
• f. Conscientious objections (gewetensbezwaren): the employee has conscientious objections to performing the work, and it is not possible to accommodate this within the existing position.
• g. Disrupted working relationship (verstoorde arbeidsverhouding): the working relationship has been severely and permanently disrupted, and restoration is not possible.
• h. Residual ground (restgrond): other circumstances that make it unreasonable for the employer to continue the employment (rarely used).
• i. Cumulation ground (cumulatiegrond): a combination of two or more of the above grounds (c through h), where each individual ground may be incomplete but the combination makes continuation unreasonable. Introduced on 1 January 2020 by the WAB.

Procedure steps

The court procedure typically proceeds as follows:

1. Petition: the employer files a petition (verzoekschrift) with the subdistrict court, setting out the grounds for dismissal and the supporting evidence.
2. Defence: you receive a copy of the petition and have the opportunity to file a written defence (verweerschrift). You can also file a counter-petition, for example requesting equitable compensation (billijke vergoeding) or reinstatement.
3. Hearing: the court schedules an oral hearing (mondelinge behandeling) where both parties present their positions and the judge asks questions. The hearing typically takes 1 to 2 hours.
4. Decision: the court issues its decision (beschikking), usually within 2 to 4 weeks after the hearing. If the court dissolves the contract, it determines the end date and awards the transitievergoeding and, if applicable, the billijke vergoeding.

Timeline

The total duration from petition to decision is typically 6 to 12 weeks, though this varies by court location and case complexity.

Your rights

• You have the right to file a written defence and be heard at the oral hearing.
• You can file a counter-petition for equitable compensation if the employer acted culpably.
• You are entitled to the transitievergoeding if the court dissolves the contract.
• If the court uses the i-ground (cumulation), it may award an additional compensation of up to 50% of the transitievergoeding on top of the regular transitievergoeding.
• You can appeal the court's decision to the Court of Appeal within three months.

Route 3: Settlement agreement (vaststellingsovereenkomst)

The settlement agreement is by far the most common way to end employment in the Netherlands. Rather than going through the UWV or the court, the employer and employee negotiate the terms of the departure and formalise these in a written agreement.

Why employers prefer settlement agreements

The settlement agreement offers advantages for the employer: it avoids the uncertainty of a court procedure, saves time and legal costs, and allows the parties to agree on terms that a court might not be able to impose (such as confidentiality clauses, non-compete arrangements, or specific reference provisions). For these reasons, many employers will propose a settlement agreement before initiating a formal procedure — or even instead of one, when they know their case is not strong enough for court.

Your position

You are never obliged to accept a settlement agreement. If you refuse, the employer must use one of the other routes (UWV or court) if they still wish to terminate the employment. This gives you significant negotiating leverage, because the employer knows that the alternative is more costly, time-consuming, and uncertain.

Key protections

• The agreement must be in writing (Article 7:670b BW).
• You have a 14-day cooling-off period to dissolve the agreement without giving reasons.
• The compensation is negotiable — the transitievergoeding is typically the minimum starting point.
• The agreement should be structured to preserve your unemployment benefit rights.

For a detailed discussion of settlement agreements, including what they contain, your rights, risks, and how to negotiate, see our comprehensive article on the settlement agreement.

Route 4: Summary dismissal (ontslag op staande voet)

Summary dismissal (ontslag op staande voet) is the most drastic form of dismissal in Dutch employment law. It is regulated in Articles 7:677 and 7:678 BW. The employer terminates the employment contract with immediate effect, without notice period and without severance pay.

Requirements for valid summary dismissal

For a summary dismissal to be valid, three strict conditions must be met:

1. Urgent reason (dringende reden): there must be a reason so serious that the employer cannot reasonably be expected to continue the employment even for a single day. Examples include theft, fraud, violence against colleagues, persistent refusal to work, or gross insubordination. Article 7:678 BW provides an indicative (non-exhaustive) list.
2. Immediacy (onverwijld): the employer must dismiss the employee immediately (or as soon as practically possible) after discovering the urgent reason. If the employer waits too long, the urgency is undermined and the summary dismissal may be invalid.
3. Simultaneous notification of the reason: the employer must inform the employee of the specific reason for the summary dismissal at the moment of dismissal (or immediately thereafter).

Consequences for the employee

• The employment ends immediately — no notice period, no salary from the date of dismissal.
• No entitlement to the transitievergoeding if the summary dismissal is upheld by the court and you are found to have been seriously culpable. However, if the dismissal is overturned or declared invalid, your right to compensation may be restored.
• Potential loss of unemployment benefit rights — the UWV may consider the dismissal as culpable unemployment.
• The employer may claim damages from the employee equal to the salary over the notice period that was not observed.

Challenging summary dismissal

If you believe the summary dismissal is unjustified, you can challenge it in court. You must file a petition with the subdistrict court within two months of the date of dismissal (Article 7:686a lid 4 sub a BW). You can request:

• Annulment of the dismissal and reinstatement.
• Alternatively, equitable compensation (billijke vergoeding) if you do not want reinstatement.
• The transitievergoeding.

Courts apply strict criteria to summary dismissals. In practice, a significant percentage of summary dismissals are overturned because the employer failed to meet one of the three requirements (particularly the urgency and immediacy requirements).

Route 5: Dismissal during probationary period

During the probationary period (proeftijd), both the employer and the employee can terminate the employment contract with immediate effect, without a notice period (Article 7:676 BW). The employer does not need to state a reason in advance, but if you request it, the employer must provide the reason in writing. This is the simplest form of termination.

Rules for the probationary period

• The probationary period must be agreed in writing (in the employment contract).
• Maximum duration: 1 month for contracts of 6 months to 2 years; 2 months for indefinite contracts or contracts of 2 years or more. A probationary period is not permitted for contracts of less than 6 months.
• The probationary period must be equal for both the employer and the employee.
• A probationary period is not allowed in a subsequent contract with the same employer (unless the new position requires clearly different skills or responsibilities).

Your rights

Even during the probationary period, there are some protections:

• If the employer dismisses you during the probationary period and you request it, the employer must provide the reason for the dismissal in writing.
• Discrimination-based dismissals during the probationary period are unlawful (for example, dismissal because of pregnancy, ethnicity, or disability).
• Since 1 January 2020, you are technically entitled to the transitievergoeding even if dismissed during the probationary period (though the amount is typically very small given the short duration).

Route 6: End of fixed-term contract

A fixed-term (bepaalde tijd) employment contract ends automatically on the agreed end date. The employer does not need permission from the UWV or the court to let a fixed-term contract expire. However, several rules apply.

Notification obligation (aanzegtermijn)

For fixed-term contracts of 6 months or more, the employer must notify you in writing at least one month before the end date whether the contract will be renewed and, if so, under what conditions (Article 7:668 BW). If the employer fails to give this notification on time, you are entitled to compensation equal to one month's salary (or a proportional amount for each day of delay).

Chain rule (ketenregeling)

Under Article 7:668a BW, a chain of temporary contracts converts into a permanent contract after:

• Three consecutive temporary contracts (the fourth becomes permanent); or
• Temporary contracts that together span more than 36 months (including gaps of 6 months or less between contracts).

The chain is broken by a gap of more than 6 months. Collective labour agreements may deviate from these rules within certain limits. If your employer has exceeded the chain rule, your contract may already be a permanent one, which means it cannot simply expire.

Severance pay

If the employer decides not to renew your fixed-term contract, you are entitled to the transitievergoeding from the first day of employment onwards. This applies even for short contracts of only a few months.

Dismissal bans (opzegverboden)

Dutch employment law contains a number of dismissal bans (opzegverboden) that prohibit the employer from terminating the employment contract in specific situations. These bans are listed in Articles 7:670 and 7:670a BW and include:

• During illness: the employer cannot dismiss you during the first two years of illness, except in specific circumstances (such as dismissal during the probationary period or summary dismissal).
• During pregnancy and maternity leave: from the start of pregnancy until 6 weeks after the end of maternity leave.
• During military service.
• Works council membership: members and former members of the works council (during and up to 2 years after membership).
• Because of marriage or registered partnership.
• Because of transfer of undertaking: dismissal because of a transfer of the business (TUPE) is prohibited.
• Because of union membership or activities.

The dismissal bans do not apply in all situations. They generally do not apply during the probationary period or when the employment is terminated with the employee's consent (settlement agreement). With summary dismissal, dismissal bans do not apply in principle, but if the stated urgent reason is connected to the protected situation (for example, if the reason relates to the illness itself), the dismissal may be voidable. There must be no abuse of the dismissal right to circumvent a ban. Signing a settlement agreement during illness carries significant risks for your benefit entitlements.

Appeal and legal remedies

Dutch employment law provides several options for challenging dismissal decisions, depending on the route that was used.

After UWV dismissal

If the UWV grants the dismissal permit and your employer terminates the contract, you can appeal to the subdistrict court within two months after the day on which the employment contract ended (not from the date of the dismissal notice itself; Article 7:686a lid 4 BW). The court can order reinstatement or award equitable compensation. If the UWV denies the permit, the employer can appeal to the subdistrict court to request dissolution of the contract.

After court dissolution

If the subdistrict court dissolves your employment contract, you can appeal to the Court of Appeal (gerechtshof) within three months from the date of the court's decision (beschikking), as specified in Article 7:683 BW. The appeal procedure reviews the full case. Further appeal to the Supreme Court (Hoge Raad) is possible on questions of law.

After summary dismissal

You must challenge the summary dismissal within two months at the subdistrict court. The court can annul the dismissal and order reinstatement, or award equitable compensation if reinstatement is not desired.

After settlement agreement

Challenging a settlement agreement after the cooling-off period has expired is very difficult. You would need to prove fraud, mistake, or abuse of circumstances (Articles 3:44 and 6:228 BW), which are high legal thresholds. This is why having the agreement reviewed before signing is so important.

Frequently asked questions about dismissal procedures

Can my employer simply fire me in the Netherlands?

No. Dutch employment law provides strong protection against unfair dismissal. Your employer must follow one of the legally prescribed routes: UWV permit (for economic reasons or long-term illness), subdistrict court petition (for personal grounds), or settlement agreement (mutual consent). Each route has specific requirements, and your employer must demonstrate a valid legal ground. Exceptions are dismissal during the probationary period, summary dismissal for an urgent reason, and bankruptcy (where the trustee can terminate the contract without prior UWV or court approval).

Which dismissal route is most common?

The settlement agreement is by far the most common route. Employers prefer it because it is faster, more predictable, and less confrontational than a court or UWV procedure. For you as an employee, this means you have significant negotiating power — the employer needs your agreement to use this route.

What are my rights if I am dismissed for economic reasons?

Your employer must obtain a UWV dismissal permit, demonstrate genuine economic necessity, and apply the correct selection criteria (reflection principle). You have the right to submit a written defence. You are entitled to the transitievergoeding and can appeal the dismissal to the subdistrict court within two months.

How long does a dismissal procedure take?

The UWV aims to decide within 4 to 8 weeks, but complex cases may take longer. The subdistrict court procedure takes 6 to 12 weeks from petition to decision. A settlement agreement can be concluded in a matter of days or weeks, depending on the negotiation. Summary dismissal takes effect immediately, but challenging it in court takes several weeks.

Can I be dismissed while I am ill?

In principle, no. A dismissal ban applies during the first two years of illness. However, there are exceptions: dismissal during the probationary period, summary dismissal for an urgent reason, and dismissal for reasons unrelated to the illness (for example, during a reorganisation that affects your position). After two years of illness, the employer can apply for a UWV dismissal permit. A settlement agreement during illness is technically possible but carries significant risks. Always seek legal advice if you are ill and facing dismissal.

What is the cumulation ground (i-ground)?

Introduced on 1 January 2020, the cumulation ground (Article 7:669 lid 3 sub i BW) allows the subdistrict court to dissolve the employment contract based on a combination of two or more incomplete dismissal grounds (c through h). This means the employer does not need to fully prove a single ground — the combination must be such that it is unreasonable to continue the employment. If the court uses the i-ground, it may award an additional compensation of up to 50% of the transitievergoeding, on top of the regular transitievergoeding.