Dismissal Due to a Disrupted Working Relationship (Verstoorde Arbeidsverhouding)

A disrupted working relationship is one of the most frequently used grounds for dismissal in the Netherlands. If the relationship between you and your employer has deteriorated to such an extent that it is no longer possible to continue working together, your employer may request the subdistrict court to dissolve your employment contract. However, not every workplace conflict qualifies as a ground for dismissal. In this article you will read what constitutes a disrupted working relationship under Dutch law, what your employer must demonstrate, what role employer culpability plays, and what compensation you may be entitled to.

What is a disrupted working relationship?

A disrupted working relationship (verstoorde arbeidsverhouding) refers to a situation in which the relationship between the employee and the employer (or direct supervisor, or colleagues) has deteriorated to such an extent that productive collaboration is no longer possible. The disruption may have various causes: a personal conflict with a manager, a fundamental disagreement about the direction of the department, a breakdown in trust, allegations of misconduct that were not substantiated, or a conflict that has escalated over time.

It is important to understand that a disrupted working relationship is distinct from other dismissal grounds. It is not the same as underperformance (disfunctioneren, sub d), although the two can overlap in practice. Sometimes employers attempt to present a relationship conflict as underperformance, or vice versa. The distinction matters because different requirements apply to each ground.

A disrupted working relationship can be one-sided (only the employer considers the relationship to be disrupted) or mutual (both parties agree that the situation is untenable). In either case, the legal question is whether the disruption is so severe that the employment can no longer reasonably be continued.

Legal basis: Article 7:669 lid 3 sub g BW

The legal ground for dismissal due to a disrupted working relationship is found in Article 7:669 lid 3 sub g of the Dutch Civil Code (BW). This article provides that the employer may request dissolution of the employment contract if there is a disrupted working relationship to such an extent that the employer cannot reasonably be expected to continue the employment.

The key legal elements are:

• Severe disruption: the disruption must be serious. Ordinary workplace tensions, a single argument, or temporary disagreements are not sufficient. The disruption must be of such a nature and severity that normal professional collaboration is genuinely impossible.
• Permanent nature: the disruption must be durable. If there is a realistic possibility that the relationship can be repaired, for example through mediation or a change in working arrangements, dismissal is premature.
• No reasonable alternative: the employer must demonstrate that continuation of the employment cannot reasonably be expected, and that reassignment to a different position within the organisation is not possible or not reasonable (Article 7:669 lid 1 BW).

Unlike underperformance, the disrupted working relationship ground does not require the employer to have followed a lengthy improvement plan. However, the employer is still expected to have made reasonable efforts to resolve the situation before resorting to dismissal.

When does this ground for dismissal apply?

The subdistrict court assesses on a case-by-case basis whether the disruption is severe enough to justify dissolution of the employment contract. Factors that the court considers include:

• The nature and cause of the conflict: what triggered the disruption? Is it a personal conflict, a difference of professional opinion, or a response to the employee raising legitimate concerns?
• The duration: how long has the disruption persisted? A conflict that has lasted for months or years and has shown no sign of improvement is more likely to be considered permanent.
• Efforts to resolve: have both parties made genuine attempts to repair the relationship? Has mediation been attempted? Has the employer explored alternative solutions?
• The severity: has the disruption affected the employee's ability to perform their work? Have colleagues or clients been affected? Is there still any trust between the parties?
• Who is at fault: while the disrupted working relationship ground does not require that the employee is at fault, the question of fault is relevant for determining whether equitable compensation should be awarded.
• Reassignment possibilities: especially in larger organisations, the court will assess whether the employee can be reassigned to a different department or location where the disruption does not affect the working situation.

Courts are generally reluctant to dissolve an employment contract when the disruption is primarily or entirely caused by the employer's actions. In such cases, the court may still grant the dissolution but award substantial equitable compensation to the employee.

Employer obligations before dismissal

Although the employer does not need to follow a formal improvement plan (as is required for underperformance), the employer is not free to simply claim a disrupted relationship and proceed to dismissal. The employer has several obligations:

Duty to be a good employer

Under Article 7:611 BW, the employer must act as a "good employer" (goed werkgeverschap). This means the employer should take reasonable steps to address and resolve workplace conflicts before concluding that the relationship is irreparably disrupted. Simply allowing a conflict to escalate, or worse, actively contributing to the escalation, will count against the employer.

Attempt to resolve the conflict

The employer is expected to have made genuine attempts to resolve the situation. This includes having open conversations about the issues, adjusting working arrangements if possible, and offering mediation. The employer cannot create a conflict and then use it as a ground for dismissal.

Investigate reassignment

Before requesting dismissal, the employer must investigate whether the employee can be reassigned to a different suitable position within the organisation. In a large company with multiple departments or locations, the options for reassignment are greater, and the court will expect the employer to have made serious efforts in this regard.

Avoid creating a self-fulfilling prophecy

Courts are alert to situations where the employer has deliberately orchestrated the disruption. For example, if the employer suspends the employee, excludes them from meetings, or takes other measures that make it impossible for the employee to function, and then claims the relationship is disrupted, the court will take this into account. The employer cannot benefit from a disruption that it has caused or worsened.

The role of mediation

Mediation plays an important role in disrupted working relationship cases. The subdistrict court will typically assess whether the employer has offered mediation before requesting dismissal. If the employer has not done so, this can weaken the employer's case.

Mediation is a process in which an independent third party (the mediator) helps the parties communicate and explore solutions. In employment disputes, mediation can serve two purposes:

1. Restoring the relationship: the mediator helps the parties understand each other's perspectives and find a way to continue working together.
2. Facilitating departure: if restoration is not possible, the mediator can help the parties agree on the terms of the employment termination, potentially leading to a settlement agreement.

As an employee, you should generally be willing to participate in mediation. Refusing mediation without a valid reason can weaken your legal position, as the court may conclude that you did not cooperate in resolving the conflict. However, you are not obliged to agree to mediation if the circumstances make it pointless — for example, if the employer has already made clear that they want you to leave regardless of the outcome.

If mediation has taken place but was unsuccessful, this actually strengthens the employer's case for dismissal, as it demonstrates that reasonable efforts to resolve the conflict have been exhausted. For this reason, it is wise to approach mediation genuinely and constructively, and to document your participation and efforts.

Employer culpability and equitable compensation

One of the most important aspects of dismissal for a disrupted working relationship is the question of employer culpability. Under Article 7:671b lid 9 sub c BW, the court may award equitable compensation (billijke vergoeding) in addition to the statutory severance pay if the dissolution is primarily the result of seriously culpable conduct or omissions by the employer.

Employer culpability may be present in situations such as:

• The employer deliberately provoked or escalated the conflict.
• The employer made unfounded accusations against the employee without proper investigation.
• The employer suspended or isolated the employee without legitimate reason.
• The employer failed to address harassment or bullying by a manager or colleagues.
• The employer refused to offer or participate in mediation.
• The employer unilaterally changed the employee's working conditions (demotion, transfer) without proper justification.
• The employer used the disrupted relationship ground as a pretext to dismiss an employee who raised legitimate concerns (e.g. about safety or compliance).

The amount of equitable compensation is not fixed by law. The court determines the amount based on all circumstances of the case, including the severity of the employer's culpable conduct, the consequences for the employee (loss of income, damage to career prospects), and what the employee would have earned if the employment had continued. In practice, equitable compensation in disrupted working relationship cases can be substantial, ranging from several months' salary to more than a year's salary in serious cases.

The landmark Dutch Supreme Court decision in New Hairstyle (2017) established that the equitable compensation should reflect the actual consequences for the employee rather than serving as a punitive measure. The court must consider all relevant circumstances, including the employee's chances on the labour market, their age, and the duration of the employment.

The court procedure

Dismissal for a disrupted working relationship is handled by the subdistrict court (kantonrechter). The procedure is as follows:

1. Petition: your employer files a petition with the subdistrict court requesting dissolution of the employment contract on the ground of a disrupted working relationship (sub g). The petition must describe the disruption, the efforts made to resolve it, and why continuation of the employment is not reasonable.
2. Defence: you receive the petition and have the opportunity to submit a written defence. In this defence, you can challenge the employer's claims, provide your perspective on the conflict, argue that mediation has not been properly attempted, and request equitable compensation if employer culpability is present.
3. Counter-request: you may also file a counter-request (tegenverzoek), for example requesting equitable compensation or arguing that the dissolution should not be granted.
4. Hearing: both parties present their arguments at an oral hearing. This is your opportunity to explain your side of the story and respond to the employer's claims.
5. Decision: the court decides whether to grant the dissolution. If granted, the court determines the end date of the employment, awards the statutory severance pay, and may award equitable compensation if the employer acted culpably.

The subdistrict court procedure is relatively fast. The hearing is typically scheduled within a few weeks to months after the petition is filed, and the decision usually follows within a few weeks after the hearing. However, the procedure can be stressful and emotionally demanding. Having experienced legal representation is strongly recommended.

Settlement agreement as common outcome

In practice, many disrupted working relationship cases are resolved through a settlement agreement (vaststellingsovereenkomst) rather than a court procedure. This is often the most pragmatic solution for both parties. The employer avoids the uncertainty and cost of a court procedure, while the employee can negotiate terms that may be more favourable than what the court would award.

Key negotiation points in a settlement agreement for a disrupted working relationship include:

• Severance payment: the amount of compensation. If the employer is (partially) at fault for the disruption, this strengthens your negotiating position considerably. The statutory severance pay is the minimum starting point, but higher compensation is often achievable.
• End date: the date on which the employment ends. The correct notice period must be observed to protect your unemployment benefit rights.
• Release from duties: being released from work with continued pay during the remaining period.
• Certificate of employment: agreements about a positive or neutral certificate of employment and references.
• Non-compete clause: lifting or limiting any restrictive covenants.
• Legal costs: a contribution from the employer towards your legal advice costs.
• Communication: agreements about how the departure will be communicated to colleagues and external parties.

The strength of your negotiating position depends on the circumstances. If the employer's case is strong (genuine disruption with proper documentation and mediation attempted), your position is weaker. If the employer bears significant responsibility for the disruption, or has failed to offer mediation, your position is considerably stronger.

Severance pay

If the employment is terminated on the ground of a disrupted working relationship, you are entitled to the statutory severance pay (transitievergoeding). This applies regardless of who caused the disruption. The statutory severance pay is calculated as one-third of a monthly salary per year of service.

In addition to the statutory severance pay, you may be entitled to equitable compensation if the employer acted culpably (as discussed above). In a settlement agreement, the total compensation is negotiable and will depend on your specific circumstances and bargaining position.

It is worth noting that if the court finds that the employee acted culpably (ernstig verwijtbaar), the court may decide not to award the statutory severance pay. However, this is an exceptional measure that is only applied in cases of serious misconduct by the employee, such as deliberate provocation of the conflict or persistent refusal to cooperate with resolution efforts.

Practical tips

If you are facing dismissal due to a disrupted working relationship, consider the following:

• Stay professional: even if the situation is emotionally charged, maintain a professional attitude. Emotional outbursts or aggressive behaviour can be used against you and may weaken your claim for equitable compensation.
• Document everything: keep a detailed record of events, conversations, emails, and any actions by the employer that have contributed to the disruption. This documentation is essential for your legal position.
• Accept mediation: if mediation is offered, participate genuinely. Refusing mediation without good reason weakens your position. If the employer refuses mediation, this strengthens your case.
• Seek legal advice early: do not wait until the situation has fully escalated. A lawyer can help you navigate the conflict strategically and protect your rights from the outset.
• Do not resign: never resign in the heat of the moment. Resigning means you lose your right to severance pay and likely your right to unemployment benefits. If you want to leave, negotiate a proper settlement agreement instead.
• Report to the company doctor: if the workplace conflict is affecting your health, report this to your employer and visit the company doctor (bedrijfsarts). Illness-related protections may apply if you become unfit for work due to the conflict.

Frequently asked questions

Can my employer dismiss me simply because we do not get along?

Not necessarily. A mere difference of opinion or personality clash is not sufficient for dismissal. The disruption must be so severe that continued employment is genuinely impossible. The court will assess whether the employer has made reasonable efforts to resolve the conflict, including offering mediation and considering reassignment.

Is the employer always obliged to offer mediation first?

The law does not explicitly require mediation, but in practice the subdistrict court will assess whether the employer has made sufficient efforts to resolve the conflict. Offering mediation is considered a key part of these efforts. If the employer has not offered mediation without a valid reason, this weakens the employer's case for dismissal.

Can I receive equitable compensation if the relationship is disrupted?

Yes, if the disruption is primarily caused by seriously culpable conduct or omissions by the employer. Examples include the employer deliberately escalating the conflict, making unfounded accusations, or failing to address harassment. The court determines the amount based on all circumstances of the case.

What if my employer suspends me and then claims the relationship is disrupted?

This is a situation courts view critically. If the employer suspends you without proper justification and then uses your absence as evidence of a disrupted relationship, this constitutes creating a self-fulfilling prophecy. The court will take this into account and may award equitable compensation. Document all communications and seek legal advice immediately if you are suspended.

Am I entitled to unemployment benefits after dismissal for a disrupted relationship?

If the employment is terminated through a properly drafted settlement agreement or by court decision, you are generally entitled to unemployment benefits (WW-uitkering), provided you meet the standard conditions. The UWV will assess whether you became culpably unemployed. In most disrupted relationship cases, unemployment benefits are not refused, as the dismissal initiative lies with the employer.

What if I am partly at fault for the disruption?

The court may still dissolve the employment contract even if both parties contributed to the disruption. However, the question of fault primarily affects the compensation. If the employer bears the main responsibility, equitable compensation may be awarded. If both parties are equally at fault, you will typically receive the statutory severance pay but not equitable compensation. Only in cases of serious employee culpability may the severance pay be reduced or denied.