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Relocation Clause in Dutch Employment Law

Relocation Clause (Verplaatsingsbeding) in Dutch Employment Law

A verplaatsingsbeding is a contractual clause providing that the employer may require the employee to perform their work at a different location - whether a different office, city, or country - as a condition of employment. The relocation clause is relevant in a variety of practical situations: corporate restructuring concentrating operations in one location, merger integration, or simply a business decision to move premises. Its enforceability depends on the interplay of contractual drafting, the goed werkgeverschap norm, and the applicable cao.

Under Dutch law, an employer generally has discretion to direct where work is performed (the instruction power, Article 7:660 of the Dutch Civil Code), within the bounds of reasonableness. A relocation clause formalises and extends this discretion. However, even with a valid relocation clause, the employer must exercise the right reasonably and in good faith. Requiring an employee with young children to relocate to another country on two weeks' notice, for example, would likely be found to violate Article 7:611 of the Dutch Civil Code regardless of the contractual language.

Requirements for a valid relocation clause under Dutch law

  1. Written agreement: The clause should be included in the employment contract or a separate written agreement.
  2. Scope: The clause should specify the geographic range of potential relocation - within the Netherlands, within the EU, or worldwide. An unlimited global relocation obligation is subject to heightened reasonableness scrutiny.
  3. Notice: Adequate notice of a required relocation must be given. Courts assess what is reasonable in light of the impact on the employee's personal circumstances.
  4. Cost reimbursement: The employer must reimburse reasonable relocation costs. A clause that requires relocation without cost reimbursement will be found unreasonable.

Employee refusal and consequences under Dutch law

An employee who refuses a reasonable and lawfully invoked relocation instruction may face disciplinary measures. Continued refusal can give grounds for dismissal, though courts assess the proportionality of dismissal in the specific circumstances - including family situation, housing, and the availability of alternatives. Employees should seek advice before refusing a relocation. See related pages on change of employment conditions and good employer practices. Consult an employment lawyer in the Netherlands for specific relocation disputes. Where the employment contract contains a written provision expressly authorising unilateral alteration of working conditions including the place of work, Article 7:613 of the Dutch Civil Code provides that the employer may only invoke this clause if it has such a weighty interest in the alteration that, by standards of reasonableness and fairness, the employee's countervailing interest must yield. For all other cases, the Hoge Raad applies the standard of Article 7:611 of the Dutch Civil Code (goed werkgeverschap): the employee is only justified in refusing a proposed change if acceptance cannot in all fairness be required from them, taking into account the employer's genuine business reasons and the proportionality of the proposed change.



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