UWV Dismissal Permit (Ontslagvergunning)

In the Netherlands, an employer cannot simply dismiss an employee. For dismissals based on economic reasons or after two years of long-term illness, the employer must first obtain a dismissal permit from the UWV (Employee Insurance Agency). This article explains the complete procedure, the grounds on which a permit can be granted, your rights as an employee, and what you can do to defend yourself.

What is a UWV dismissal permit?

A UWV dismissal permit (ontslagvergunning) is an authorisation granted by the UWV that allows an employer to terminate an employment contract. The legal basis is found in Article 7:671a of the Dutch Civil Code (BW) in conjunction with the Dismissal Decree (Ontslagregeling).

The UWV route is one of the two main formal dismissal procedures in the Netherlands. The other is dismissal via the subdistrict court (kantonrechter). Which route the employer must follow depends on the reason for dismissal:

• UWV: for economic reasons (bedrijfseconomische redenen) and long-term illness (langdurige arbeidsongeschiktheid)
• Subdistrict court: for personal reasons such as underperformance, disrupted working relationship, or culpable conduct

The employer may not choose freely between these routes — the dismissal ground determines the procedure.

When is a UWV permit required?

A UWV dismissal permit is required in two specific situations:

1. Economic reasons (bedrijfseconomische redenen)

This includes situations where the employer needs to reduce staff due to:

• Poor financial results or declining turnover
• Reorganisation or restructuring
• Business closure (full or partial)
• Technological changes making positions redundant
• Outsourcing of activities
• Relocation of the business

2. Long-term illness (langdurige arbeidsongeschiktheid)

After two years of illness (104 weeks), if the employee is still unable to perform their work and there is no prospect of recovery within 26 weeks, the employer can request a dismissal permit. The employer must demonstrate that:

• The employee has been ill for at least 104 weeks
• Recovery is not expected within 26 weeks
• There is no possibility of structural resumption of work in the employee's own or an adapted role
• The employee cannot be reasonably reassigned to other suitable work within the company, including with the aid of training or retraining
• The employer has fulfilled all reintegration obligations under the Gatekeeper Improvement Act

All of these conditions must be met cumulatively.

Grounds for a UWV dismissal permit

The specific dismissal grounds handled by the UWV are laid down in Article 7:669 paragraph 3 of the Dutch Civil Code:

• Ground a: economic reasons — the elimination of jobs due to business economic circumstances. The employer must demonstrate that the redundancy is necessary, that the correct selection method has been applied, and that redeployment is not possible.
• Ground b: long-term illness — the employee has been incapacitated for work for at least two years without prospect of recovery. The employer must have fulfilled all statutory reintegration obligations.

The reflection principle (afspiegelingsbeginsel)

For economic dismissals, the employer must apply the reflection principle (afspiegelingsbeginsel) to determine which employees are selected for dismissal. This works as follows:

1. The employer identifies which positions are interchangeable (positions with similar tasks, knowledge, skills and competencies)
2. Employees in interchangeable positions are divided into five age groups: 15-24, 25-34, 35-44, 45-54, and 55+
3. Within each age group, in principle the employee with the shortest tenure is dismissed first (last in, first out). Exceptions include indispensable employees, employees with an occupational disability, and situations involving temporary agency workers or payroll employees, for which different rules may apply.
4. The dismissals are distributed proportionally across the age groups to maintain a balanced age profile

The application procedure

The UWV dismissal procedure follows a structured process with clear steps:

Step 1: Application by employer

The employer submits a written application to the UWV, including a detailed justification for the dismissal. For economic dismissals, this must include financial documents, organisational charts, a detailed explanation of why the position is being eliminated, the application of the reflection principle, and evidence that redeployment is not possible.

Step 2: Employee defence (verweer)

You receive a copy of the employer's application and are given 14 days to submit a written defence. This is your opportunity to challenge the employer's arguments. You can argue that the economic grounds are insufficient, the reflection principle was incorrectly applied, redeployment was not adequately explored, or that dismissal bans apply (such as illness or pregnancy).

Step 3: Employer response (optional)

The employer may submit a response to your defence within 7 days.

Step 4: Second round (optional)

In complex cases, the UWV may allow a second round of written arguments from both sides.

Step 5: Decision

The UWV issues its decision, granting or refusing the dismissal permit.

Your defence as an employee

Your written defence is crucial. This is your main opportunity to present arguments against the dismissal. Common defence strategies include:

• Challenging the economic grounds: arguing that the financial situation does not justify redundancies, that the employer's projections are too pessimistic, or that the decline is temporary
• Disputing the reflection principle: arguing that positions have been incorrectly identified as interchangeable, that the age groups have been applied incorrectly, or that you should not be the one selected for dismissal
• Redeployment possibilities: pointing to suitable alternative positions within the company or group that the employer has not offered you
• Dismissal bans: if you are ill, pregnant, on parental leave, or a member of the works council, special dismissal protection may apply
• Procedural errors: if the employer has not followed the correct procedure, such as not consulting the works council (Article 25 WOR) when required
• Reintegration failures (ground b): for illness-related dismissals, arguing that the employer failed to meet reintegration obligations

Timeline

The UWV aims to reach a decision within 4 to 6 weeks after receiving the complete application. However, the actual timeline depends on the complexity of the case and whether additional rounds of arguments are needed. In practice, the full process from application to decision typically takes:

• Simple cases: 4-6 weeks
• Complex cases: 6-10 weeks
• Cases with additional rounds: up to 12 weeks

The UWV decision

The UWV can either grant or refuse the dismissal permit:

Permit granted

If the UWV grants the permit, the employer may terminate the employment contract. However, the employer must still observe the applicable notice period, minus the time the UWV procedure took (in principle with a minimum of one month remaining, pursuant to Article 7:672 lid 5 BW). The permit is valid for 4 weeks after the date of the decision — if the employer does not give notice within this period, the permit lapses.

Permit refused

If the UWV refuses the permit, the employer cannot dismiss you via this route. The employer may then try to reach a settlement agreement with you or, in some cases, apply to the subdistrict court.

What happens after the permit is granted

If the UWV grants the dismissal permit, the following happens:

• Your employer gives notice of termination in writing
• The applicable notice period must be observed (minus the UWV procedure duration, minimum 1 month)
• Your employment ends on the last day of the notice period
• You are entitled to severance pay (transitievergoeding)
• You can apply for unemployment benefits (WW)

Severance pay

After dismissal with a UWV permit, you are entitled to the statutory severance pay (transitievergoeding). This amounts to one-third of a monthly salary per year of service. The employer must pay this within one month after the end of the employment contract.

In addition to the statutory severance pay, you may be entitled to equitable compensation (billijke vergoeding), but only if the employer acted seriously culpable (ernstig verwijtbaar). This must be claimed through the subdistrict court. Simply disagreeing with the severance amount is not sufficient — you must demonstrate serious culpable conduct by the employer. Equitable compensation is rare in UWV dismissals but can apply if, for example, the employer deliberately created the economic circumstances to justify the dismissal.

Appealing the decision

There is no formal administrative appeal against the UWV's decision. However, you can have the decision indirectly reviewed by the subdistrict court (kantonrechter): within 2 months after the end of your employment contract, you can file a petition requesting:

• Reinstatement (herstel van de arbeidsovereenkomst): the court orders the employer to re-employ you
• Equitable compensation (billijke vergoeding): financial compensation on top of the statutory severance pay

The court will reassess the case independently and can reach a different conclusion than the UWV. Professional legal representation is strongly recommended for court proceedings.

Settlement agreement as alternative

In many cases, employers prefer to avoid the UWV procedure entirely by offering a settlement agreement (vaststellingsovereenkomst). This can have advantages for both parties:

• For the employer: a faster and more certain outcome, no risk of the permit being refused
• For you: negotiable compensation (which may be equal to, lower or higher than the statutory transitievergoeding depending on the circumstances), control over the terms, and the 14-day cooling-off period

If you receive a settlement agreement in the context of a potential UWV procedure, your negotiating position is important. Key factors include whether the employer has a strong case, whether the reflection principle has been correctly applied, and whether there are redeployment possibilities. A lawyer can assess your position and help you negotiate the best possible terms.

Frequently asked questions

How long does the UWV dismissal procedure take?

The UWV aims to decide within 4 to 6 weeks. Complex cases may take longer, up to 10-12 weeks. The total time from application to actual end of employment also includes the notice period.

Can I be dismissed during illness via the UWV?

Only after two years of illness, provided the employer has met all reintegration obligations and there is no prospect of recovery within 26 weeks. During the first two years, a dismissal ban applies. There is an exception if you became ill after the UWV application was submitted.

What if my employer also offers a settlement agreement?

Many employers offer a settlement agreement alongside or instead of the UWV procedure. This can be advantageous as it may result in higher compensation and gives you more control over the terms. Have the agreement checked by our lawyers before deciding.

Am I entitled to severance pay after a UWV dismissal?

Yes, after dismissal with a UWV permit you are in principle entitled to the statutory severance pay (transitievergoeding), which amounts to one-third of a monthly salary per year of service. In exceptional cases involving seriously culpable conduct by the employee, the court may reduce or deny the transitievergoeding.

Can I receive unemployment benefits after a UWV dismissal?

A dismissal with a UWV permit is in principle considered involuntary, which means you generally meet the main condition for unemployment benefits. You must also meet the weeks and years requirements and register at werk.nl on the first working day after your employment ends. Note: if there are additional circumstances suggesting culpable conduct on your part (such as structural refusal of suitable work), the UWV may still refuse or reduce your benefit.

What if I think the reflection principle was applied incorrectly?

You should raise this in your written defence during the UWV procedure. If the UWV still grants the permit, you can appeal to the subdistrict court within 2 months after the end of your employment. Incorrect application of the reflection principle is one of the most common grounds for overturning a dismissal.