Dismissing an employee in the Netherlands - the correct procedure
Dismissing an employee in the Netherlands is legally complex. Unlike many countries, Dutch law does not allow employers to dismiss employees simply by giving notice. Depending on the ground for dismissal, the employer must follow one of several prescribed routes. Choosing the wrong route, or following the right route incorrectly, can result in the dismissal being void, the employee being reinstated, or the employer being ordered to pay significant additional compensation. Getting the procedure right from the start is therefore essential.
The main dismissal routes under Dutch law are:
- UWV permission: Required for redundancy (bedrijfseconomisch ontslag) and long-term incapacity (more than 2 years of illness). The employer applies to the UWV for permission to give notice. The UWV assesses the ground and gives or refuses permission.
- Subdistrict court dissolution: Required for grounds related to the employee's person - performance (disfunctioneren, d-ground), culpable conduct (verwijtbaar handelen, e-ground), impaired working relationship (verstoorde arbeidsrelatie, g-ground), and others. The employer applies to the subdistrict court to dissolve the contract.
- Mutual consent (settlement agreement): The employer and employee agree to end employment through a vaststellingsovereenkomst. No third-party authorisation required, but the agreement must meet legal requirements.
- Summary dismissal: Only for urgent reasons - see ontslag op staande voet. High risk if the requirements are not strictly met.
Common employer mistakes under Dutch dismissal law
The most common mistakes are: choosing the wrong dismissal route; failing to build an adequate dismissal dossier before starting proceedings; dismissing during a prohibited period (illness, pregnancy); and underestimating the transition payment liability. Before initiating any dismissal, consult an employment lawyer to ensure the procedure is watertight.
The UWV dismissal permit route (Articles 7:671a-671b BW) applies to redundancy for economic reasons and dismissal after two years of illness; a sector committee established by collective agreement may replace the UWV for economic dismissals in certain sectors (Article 7:671a(2) of the Dutch Civil Code). The subdistrict court dissolution route (Article 7:671b of the Dutch Civil Code) covers grounds related to the employee person, including performance (d-ground), culpable conduct (e-ground), impaired working relationship (g-ground), and the cumulation ground (i-ground, Article 7:669(3)(i) BW), and the court cannot dissolve the contract unless at least one reasonable ground is established and redeployment has been assessed. An employer who chooses the wrong route, or follows the correct route without adequate substantiation, risks the court refusing the request and ordering the employer to pay the employee legal costs.
The UWV dismissal permit route (Articles 7:671a-671b BW) applies to redundancy for economic reasons and dismissal after two years of illness; a sector committee established by collective agreement may replace the UWV for economic dismissals in certain sectors (Article 7:671a(2) of the Dutch Civil Code). The subdistrict court dissolution route (Article 7:671b of the Dutch Civil Code) covers grounds related to the employee person, including performance (d-ground), culpable conduct (e-ground), impaired working relationship (g-ground), and the cumulation ground (i-ground, Article 7:669(3)(i) BW), and the court cannot dissolve the contract unless at least one reasonable ground is established and redeployment has been assessed. An employer who chooses the wrong route, or follows the correct route without adequate substantiation, risks the court refusing the request and ordering the employer to pay the employee legal costs.