Performance Improvement Plan (Verbetertraject) in the Netherlands
A verbetertraject (performance improvement plan, or PIP) is a structured programme used by Dutch employers to address inadequate employee performance before initiating dismissal proceedings. Under Article 7:669(1) sub d BW, dismissal on grounds of underperformance is only permissible if the employer can demonstrate that the performance was deficient, that the employee was informed of the deficiencies, and that the employer offered a realistic opportunity to improve. The verbetertraject is the instrument through which this opportunity is formally provided.
Dutch courts apply a strict test. A PIP must be genuine - not a paper exercise designed to manufacture a dismissal file. The Sub-district Court (kantonrechter) regularly refuses dissolution requests or awards a billijke vergoeding (fair compensation) on top of the statutory transition payment where the improvement plan was unrealistic, too short, or lacked proper support from the employer.
Key elements of a valid verbetertraject under Dutch law
- Clear performance targets: Specific, measurable objectives linked to the job description. Vague targets such as "improve your attitude" are insufficient.
- Realistic timeframe: Courts generally expect a minimum of two to three months for most roles, longer for complex or senior positions. A plan of two weeks will almost never suffice.
- Active employer support: Coaching, training, regular feedback meetings, and removal of obstacles within the employer's control. Passive monitoring is not enough.
- Documented progress reviews: Written records of each review meeting, signed or acknowledged by the employee.
- Clear consequence: The plan must state explicitly that failure to meet the targets may result in dismissal.
After the PIP: dismissal procedure in the Netherlands
If performance does not improve after a genuine verbetertraject, the employer may submit a dismissal request to the UWV or seek dissolution of the employment contract via the subdistrict court. The entire PIP dossier - meeting notes, written feedback, the improvement plan document itself - forms the core of the employer's evidence. See our pages on written warnings, dossier building, and dismissal for poor performance for the broader procedural context.
Employers should also consider whether underperformance may be linked to illness or disability, which triggers separate obligations under the Wet verbetering poortwachter. Mixing performance and sick-leave procedures is a common and costly mistake. Consult an employment lawyer in the Netherlands if the situation is complex.
Dutch disciplinary law requires courts to consider whether lesser sanctions - such as a written warning - were applied before escalating to more serious measures, and to examine whether the sanction was proportional to the conduct. For the specific ground of underperformance (the d-grond), Article 7:669(3)(d) BW requires that the employer demonstrate the employee was given sufficient opportunity to improve and that the underperformance cannot be attributed to inadequate training or poor working conditions.