What are the dismissal procedures under employment law in the Netherlands?
Dismissal procedures under Dutch employment law follow strict rules set out in the Dutch Civil Code (Burgerlijk Wetboek). Employers who want to dismiss an employee in the Netherlands must follow specific procedures depending on the grounds for dismissal. This article explains the main dismissal procedures, notice periods and protections under employment law in the Netherlands.
When dismissing employees, employers must adhere to the regulations set forth by Dutch employment law. This includes being aware of their obligations under local legislation when terminating contracts or reducing hours. Employers must also be mindful of potential liabilities if they fail to comply with these rules. Understanding how different types of dismissals affect employees' rights is important for making informed decisions. For definitions of the Dutch dismissal terminology used below, see our employment law glossary.
Employees too should understand their rights under Dutch law so that they can take appropriate action if necessary. They should be familiar with both the legal framework governing termination procedures and the protection against dismissal put in place to shield them from unfair treatment from employers during the process. With this knowledge in hand, both parties can move forward confidently while safeguarding their respective interests throughout the dismissal procedure.
What Are the Grounds for Dismissal in the Netherlands?
Under Article 7:669 of the Dutch Civil Code, an employer must rely on one of eight statutory grounds to dismiss an employee: redundancy, long-term disability of more than two years, unsatisfactory job performance, culpable behaviour, a disturbed employment relationship (verstoorde arbeidsverhouding), frequent absenteeism due to illness, conscientious objections, and a combination of grounds. The employer must prove that one of these grounds fully applies before terminating the contract.
Special rules apply to the dismissal of a sick employee who has been unable to work for an extended period. In the case of serious misconduct, an employer may resort to summary dismissal (ontslag op staande voet) without prior notice. Employers must justify their decision with valid evidence before they can lawfully terminate an employee's contract, and the UWV or the subdistrict court must validate the termination. Dismissals based on discrimination or arbitrary decisions are strictly prohibited and will result in significant legal repercussions for the employer.
For a dismissal to qualify as lawful, it must meet the regulations and criteria set forth by Dutch law. This includes clear documentation confirming that there is sufficient justification for termination and that alternative solutions were considered first. For practical guidance on assembling such a file, see our article on building a dismissal case file under Dutch law. If multiple employees are affected by layoffs or restructuring, seniority and the reflection principle (afspiegelingsbeginsel) should be taken into consideration during the selection process.
What Severance Payments Are Due under Dutch Employment Law?
When an employment contract is terminated, the employee is generally entitled to the statutory transition payment (transitievergoeding), and in certain cases also to fair compensation (billijke vergoeding).
The transition payment is based on the employee's length of service with the employer. Since January 2020, it equals one-third of the monthly salary for each year of service. Employees are entitled to this payment from the first day of employment when they are involuntarily dismissed, regardless of the grounds for dismissal, unless the employee's conduct was seriously culpable.
What Notice Periods Apply to Dismissal under Dutch Employment Law?
The statutory notice period for employers depends on the employee's length of service: one month for up to five years, two months for five to ten years, three months for ten to fifteen years, and four months for fifteen years or more. The employment contract or collective labour agreement may specify different periods, and no notice is required where the employer dismisses for urgent cause (summary dismissal).
Employers must provide employees with written notification regarding their dismissal along with all relevant information such as reasons for dismissal and effective date of termination. This document can also include details about any applicable severance pay or other benefits due upon the end of employment.
How Can an Employee Protest Against a Dismissal?
An employee can contest a dismissal by filing a request with the subdistrict court (kantonrechter). The deadline depends on the type of dismissal: two months for a summary dismissal, and generally two to three months for other types of dismissal. The burden of proof lies with the employer to show that it acted lawfully in dismissing the employee.
The kantonrechter will consider all evidence presented by both parties and make a determination based on applicable laws and regulations. If it finds that the dismissal lacked legal justification, it may order reinstatement or compensation for any losses suffered as a result of the wrongful dismissal.
Once notified of an employee's challenge, employers should ensure that proper documentation such as contracts, warnings and disciplinary records are readily accessible to support their case before the kantonrechter.
What Are the Collective Dismissal Procedures in the Netherlands?
Collective dismissal regulations are strictly enforced in the Netherlands to protect workers from mass dismissals. Employers must adhere to a number of requirements when reducing their workforce due to economic or technological circumstances. These include:
- complying with all applicable collective redundancy rules;
- negotiating with trade unions prior to any planned dismissals; and
- notifying the UWV and the relevant trade unions of any collective redundancies, after which a one-month waiting period (wachttijd) applies before individual dismissal applications can be submitted.
Employers must also treat employees fairly throughout the procedure by providing them with sufficient information about the reasons for the dismissal and allowing them to express their opinion on proposed measures. Additionally, employers must draft individual severance agreements (vaststellingsovereenkomsten) outlining termination terms as well as details regarding post-termination benefits such as unemployment compensation.
Failure to comply with collective dismissal procedures could result in costly legal proceedings against the employer. Organisations operating in the Netherlands should familiarise themselves with the legislation surrounding collective dismissal notifications (melding collectief ontslag) and meet all associated requirements before putting forward proposals involving large-scale redundancies under Dutch labor law.
What Protection Against Discrimination and Harassment Applies under Dutch Law?
Discrimination on the basis of race, gender, religion, disability or sexual orientation is prohibited across all employment sectors in the Netherlands. Employers are legally bound to provide a safe environment free from discrimination or harassment, including access to effective grievance procedures for addressing such behaviour.
Employees who experience discrimination or harassment can file complaints with the Netherlands Institute for Human Rights (College voor de Rechten van de Mens) and/or seek legal assistance through civil court proceedings if needed. In addition to this, workers may also be able to lodge a complaint directly with their employer about any violations of Dutch law pertaining to discrimination or harassment.
Employers in the Netherlands should take proactive steps in preventing and responding to instances of discrimination or harassment, including policies outlining what constitutes inappropriate behaviour, disciplinary measures, and reporting procedures. These steps help protect everyone's rights under Dutch employment law and maintain a safe working environment.
Key legal sources
- Article 7:669 of the Dutch Civil Code - exhaustive list of statutory grounds for dismissal
- Article 7:671a of the Dutch Civil Code - UWV permit route for redundancy and long-term illness
- Article 7:671b of the Dutch Civil Code - subdistrict court route for other dismissal grounds
- Wet melding collectief ontslag (WMCO) - statutory basis for the collective redundancy notification to the UWV and trade unions
- UWV: informing us of a collective redundancy - official notification procedure, including the one-month waiting period