What Is Summary Dismissal under Dutch Law?
Summary dismissal (ontslag op staande voet) is the termination of an employment contract with immediate effect for an urgent reason. Under Article 7:677(1) of the Dutch Civil Code, either party may use it, but only if three conditions are met: there is an urgent reason, the contract is terminated immediately, and the reason is communicated to the other party immediately. No permission from UWV and no court decision is needed. That is what makes it attractive to employers, and also what makes it the riskiest form of dismissal.
An urgent reason is conduct, or a circumstance, so serious that the employer cannot reasonably be expected to let the contract continue even for the notice period. The courts assess it against all the circumstances of the case, including the consequences of the dismissal for the employee. When a summary dismissal fails, the employer is usually left with an employment contract that never ended, salary arrears with a statutory increase, and often a claim for fair compensation.
Summary dismissal at a glance
- Three requirements: an urgent reason, immediate termination, and immediate communication of the reason. All three must be met.
- Urgent reason: Article 7:678 of the Dutch Civil Code gives examples such as theft, fraud, violence, serious threats and persistent refusal of reasonable instructions. The list is not exhaustive and none of the examples is automatically enough.
- All circumstances count, first the nature and seriousness of the conduct, and also the length of service, the employee's record and personal circumstances such as age and the consequences of dismissal.
- No permission needed from UWV or the court, and the dismissal prohibitions for illness and pregnancy do not apply.
- Transition payment: not lost automatically. Only seriously culpable conduct by the employee excludes it.
- Two months for the employee to ask the court to annul the dismissal or to award compensation.
- Both ways: an employee can also leave with immediate effect for an urgent reason on the employer's side, such as wages not being paid on time.
On this page
What Are the Requirements for a Valid Summary Dismissal?
Article 7:677 of the Dutch Civil Code (1) allows each party to terminate the contract immediately for an urgent reason, with immediate communication of that reason to the other party. Three requirements follow from that single sentence, and a summary dismissal that misses any one of them fails.
| Requirement | What it means | Basis |
|---|---|---|
| Urgent reason | Conduct or circumstances such that the employer cannot reasonably be expected to let the contract continue | Article 7:677 (1) and Article 7:678 (1) |
| Immediate termination | The dismissal follows promptly once the employer knows the facts; waiting undermines the claim that continuing was impossible | Article 7:677 (1) |
| Immediate communication of the reason | The employee must understand straight away why the dismissal is given | Article 7:677 (1) |
References are to the Dutch Civil Code. The statute prescribes no form. An oral dismissal is valid, but the employer carries the burden of proving all three requirements, so a written confirmation handed over or sent at the same time is the only practical way to do it.
Summary dismissal is one of the routes by which an employment contract can end without UWV permission or a court decision: Article 7:671 of the Dutch Civil Code (1)(c). That exemption only applies if the dismissal is actually valid. For the other routes, see the overview of termination of employment in the Netherlands.
What Counts as an Urgent Reason for Summary Dismissal?
For the employer, urgent reasons are acts, characteristics or conduct of the employee that mean the employer cannot reasonably be expected to let the contract continue: Article 7:678 of the Dutch Civil Code (1). Paragraph 2 gives examples, and the Supreme Court decides each case on all its circumstances.
The statutory examples include cases where the employee:
- misled the employer when the contract was concluded, with false or forged certificates, or deliberately gave false information about how the previous employment ended;
- turns out to lack, to a serious degree, the ability or fitness for the work agreed;
- engages in drunkenness or other dissolute conduct despite a warning;
- commits theft, embezzlement, fraud or other crimes that make the employee unworthy of the employer's trust;
- assaults, grossly insults or seriously threatens the employer, the employer's family or household, or colleagues;
- deliberately, or recklessly despite a warning, damages the employer's property or exposes it, the employee or others to serious danger;
- discloses details of the employer's household or business that should have been kept confidential;
- persistently refuses to comply with reasonable orders or instructions;
- otherwise grossly neglects the duties the employment contract imposes;
- deliberately or recklessly becomes or remains unable to do the work agreed.
The list is illustrative. Conduct that is on it is not automatically an urgent reason, and conduct that is not on it can be one. A clause in the employment contract that leaves it to the employer to decide what counts as an urgent reason is void (paragraph 3). A code of conduct or a list of "zero tolerance" offences therefore helps to show that the employee knew the rule, but it does not bind the court.
The test is the one the Supreme Court restated in 2021: all circumstances of the case are taken into account together. First come the nature and seriousness of what the employer treats as the urgent reason. Then, among other things, the nature and length of the employment, how the employee performed, and the employee's personal circumstances, such as age and the consequences a summary dismissal would have. In the case decided in 2021 the court of appeal had failed to examine whether the employer was entitled to refuse the employee's leave request, which was relevant to how serious his absence was. That is how the test works in practice: the conduct is assessed in its context, including the employer's own behaviour.
The statute does mention a serious lack of ability or fitness for the work, but ordinary underperformance belongs to the ordinary dismissal route, where the employee must first be warned and given an opportunity to improve; see dismissal for poor performance.
How Quickly Must the Employer Act?
The statute requires the dismissal to be given "immediately" (onverwijld). The idea is simple: an employer that can wait cannot claim that continuing the contract for the notice period was unacceptable. How much time is reasonable is decided case by case.
An employer does not have to act before it knows the facts, but every day between learning of the conduct and the dismissal has to be explainable. Time used to establish what happened is easier to explain than a delay without a reason, or than letting the employee continue working for weeks while the matter rests. An employer that needs time is well advised to tell the employee what is being investigated and, where appropriate, to suspend the employee on full pay in the meantime, so that the delay cannot later be read as acceptance.
How Must the Reason Be Communicated?
The reason must be communicated to the employee immediately, and in such a way that the employee understands at once why the dismissal is given. An employer that later changes or expands the reason weakens its own position.
In 2023 the Supreme Court overturned a judgment that had found the communication requirement not met. The dismissal letter described the allegations under general headings, but the footnotes gave concrete examples of the remarks the employee was accused of making, and the employer had argued that the employee's own emails showed he understood the accusations. The court of appeal should have dealt with that. The Supreme Court also stressed that whether the reason was properly communicated and whether an urgent reason exists are two separate questions.
The practical lesson is to describe the conduct concretely: what happened, when, and why it is regarded as an urgent reason. A reason that is too vague, or that is changed or expanded later in court, is one of the most common reasons summary dismissals fail.
Does the Employer Have to Investigate and Hear the Employee First?
The statute does not require a formal investigation or a hearing before the dismissal. The Supreme Court held in 2023 that the absence of a proper investigation does not in itself prevent an urgent reason from existing.
That does not make investigation optional in practice. The employer must prove the facts, and a dismissal based on an incomplete picture risks resting on facts that later turn out to be wrong or less serious. Hearing the employee's side before deciding is the most effective safeguard against that, and it often shows whether the reason is urgent at all. Where an investigation is carried out, it also helps the employer to formulate the reason concretely, which is what the communication requirement demands.
Can an Employee Be Summarily Dismissed While Sick or Pregnant?
Yes, in principle. The dismissal prohibitions in Article 7:670(1) to (4) and (10) of the Dutch Civil Code, which protect an employee during illness, pregnancy, military service and works council membership, do not apply to a summary dismissal: Article 7:670a of the Dutch Civil Code (2)(c).
The other prohibitions do apply. A summary dismissal may not be given because of trade union membership, statutory leave or the other circumstances in Article 7:670 (5) to (9), and the bans on discrimination apply in full. A summary dismissal of an employee who has just reported sick or announced a pregnancy will be examined closely for that reason. See dismissal prohibitions.
What Are the Consequences of Summary Dismissal for the Employee?
If the dismissal is valid, the contract ends on the spot and the salary stops. Whether the employee keeps the transition payment depends on a separate question: was the conduct seriously culpable?
Transition payment. The employer is not required to pay it if the end of the contract results from seriously culpable conduct by the employee (Article 7:673 of the Dutch Civil Code (7)(c)). That is a different test from the urgent reason. In Dräger the Supreme Court held that the existence of an urgent reason does not in itself mean that the dismissal results from seriously culpable conduct. A valid summary dismissal can therefore still leave the employer owing the transition payment. Even where the conduct was seriously culpable, the court can award all or part of the payment if withholding it would be unacceptable (paragraph 8). See seriously culpable conduct by the employee.
Compensation to the employer. A party that intentionally or through its own fault gave the other an urgent reason owes compensation if the other party used it (Article 7:677 of the Dutch Civil Code (2)). For a permanent contract, it equals the salary for the period the contract should have lasted with regular notice (paragraph 3(a)). The court can reduce it, but not below the salary for the statutory notice period (paragraph 5(a)).
Can an Employee Resign with Immediate Effect?
Yes. Summary termination works in both directions. For the employee, urgent reasons are circumstances that mean the employee cannot reasonably be expected to let the contract continue: Article 7:679 of the Dutch Civil Code (1).
The statutory examples include assault, gross insults or serious threats by the employer, the employer failing to pay wages on time, gross neglect of the employer's duties, and continued employment involving serious dangers to life, health, morality or reputation that were not clear when the contract was concluded (paragraph 2). The same three requirements apply: the employee must leave immediately and state the reason immediately.
An employee who leaves for an urgent reason caused by the employer can claim compensation under Article 7:677(2), which the court can set higher where that is fair (paragraph 5(b)). If the employer's conduct was seriously culpable, the employee is also entitled to the transition payment (Article 7:673(1)(b)). An employee who is not sure the reason is strong enough can ask the court to dissolve the contract instead (Article 7:671c of the Dutch Civil Code), which avoids the risk of resigning on a reason the court does not accept.
How Can an Employee Contest a Summary Dismissal?
An employee who disputes the dismissal can ask the subdistrict court to annul it, or can accept that the contract has ended and claim compensation instead. Both routes must be taken within two months after the contract ended: Article 7:686a of the Dutch Civil Code (4)(a).
| Claim | Basis | Deadline |
|---|---|---|
| Annulment of the dismissal, so that the contract continues and the salary is owed | Article 7:681 (1)(a) | 2 months after the contract ended |
| Fair compensation instead of annulment | Article 7:681 (1) | 2 months |
| Salary for the notice period that was not observed | Article 7:672 (11) | 2 months |
| Fixed-term contract without an early termination clause: salary for the rest of the term, which the court can reduce to no less than three months | Article 7:677 (4) | 2 months |
| Transition payment | Article 7:673 | 3 months |
All references are to the Dutch Civil Code. A summary dismissal without a valid urgent reason falls outside the exemption in Article 7:671(1)(c), so it is a notice given without the employee's consent, without UWV permission and without a court decision. That is why Article 7:681(1)(a) is the basis for annulment. Where the dismissal is annulled, the salary for the intervening period is owed, and salary that is paid late can carry a statutory increase of up to half the amount owed, which the court can limit (Article 7:625 of the Dutch Civil Code (1)).
Annulment and compensation are alternatives: the employee chooses. The deadlines are forfeiture periods, and a letter to the employer does not stop them. See deadlines for contesting a dismissal and fair compensation.
What Are the Risks of Summary Dismissal for the Employer?
A failed summary dismissal is usually more expensive than the ordinary route would have been. The contract has not ended, the salary has continued to accrue, and the employer's conduct may be treated as a reason for fair compensation.
- Salary arrears from the day of the dismissal, with the statutory increase under Article 7:625 of the Dutch Civil Code.
- Fair compensation under Article 7:681, on top of any transition payment.
- The transition payment itself, unless the employee's conduct was seriously culpable.
- Salary for the notice period that was not observed, if the employee chooses compensation.
An employer that has given a summary dismissal can also ask the subdistrict court, in the alternative, to dissolve the contract under Article 7:671b of the Dutch Civil Code on one of the reasonable grounds, such as culpable conduct. If the summary dismissal fails, the contract can then still end by court order. Whether the facts carry an urgent reason, or only a reasonable ground for ordinary dismissal, is exactly the judgment that is worth having checked by a Dutch employment lawyer before acting.
What Should a Summary Dismissal Letter Contain?
The letter confirms a dismissal that has usually already been given orally. It has one job: to set out the reason so concretely that the employee knows at once what the dismissal is based on.
[Place], [date]
Subject: summary dismissal
Dear [name],
In our meeting today at [time], attended by [names], we informed you that we are terminating your employment agreement with immediate effect for an urgent reason within the meaning of Articles 7:677 and 7:678 of the Dutch Civil Code. We confirm that decision in this letter.
The urgent reason is the following. On [date], at [place], you [concrete description of the conduct]. We established this on [date] through [how the employer found out, for example camera images, witness statements or documents]. On [date] you were given the opportunity to respond, and you stated [summary of the response].
We regard this conduct as an urgent reason because [why it makes continuing the contract unacceptable, for example the breach of trust in view of your position].
Your employment ends today. You will receive your final settlement, including salary up to and including today and any untaken holiday, within [period].
Yours sincerely,
[Name and position]
Where these letters go wrong in practice:
- The reason is described in general terms ("integrity breach", "unacceptable behaviour") without the facts.
- The letter adds reasons that were not given in the meeting, or the employer adds new ones in court.
- The letter is sent days after the facts were known, without explaining the delay.
- The facts in the letter cannot be proved.
This model is a starting point and not legal advice. Whether particular conduct is an urgent reason depends on all the circumstances.
Summary Dismissal in the Netherlands: A Checklist
For employers, before the decision is taken:
- What exactly happened, and can each fact be proved?
- Has the employee been heard, and does the explanation change the picture?
- Is the conduct, in all the circumstances including length of service, record, age and the consequences of dismissal, serious enough that even the notice period cannot be worked?
- Was the rule known to the employee, for example through a code of conduct or an earlier warning?
- Has the employer acted without undue delay since learning the facts, and can any delay be explained?
- Can the reason be stated concretely, in one or two paragraphs, today?
- Is there any link with illness, pregnancy, trade union activity, leave or a protected characteristic that could make the dismissal look like something else?
- Would an ordinary dismissal route, or a settlement agreement, achieve the same result with less risk?
For employees, after a summary dismissal: ask for the reason in writing if it was not given, keep every document and message, note the date the contract ended, and decide within two months whether to seek annulment or compensation. A Dutch employment lawyer can assess the chances quickly; the short deadline makes delay costly.
Worked Examples
Each example assumes Dutch law governs the employment contract.
Theft with evidence. A warehouse employee is filmed taking goods home. The employer reviews the images the same day, hears the employee the next morning, and dismisses him in that meeting, confirming the reason in a letter handed over at the end. The three requirements are met. Whether the dismissal holds depends on all the circumstances, but theft is a statutory example and the employer acted promptly. Whether the transition payment is lost is a separate question of serious culpability.
A delay. An employer discovers expense fraud in March, discusses it internally, lets the employee continue working, and dismisses her summarily in May. Unless the employer can show that the two months were needed to establish the facts, the dismissal was not given immediately, and the employee can ask the court within two months to annul it.
A vague reason. A dismissal letter says only "serious breach of integrity". The employee does not know which conduct is meant. The communication requirement is not met, and explaining in court afterwards what was meant does not cure that.
A dismissal during sick leave. An employee who is on sick leave is found to be working for a competitor. The prohibition on dismissal during illness does not stand in the way of a summary dismissal, so the question is only whether the conduct is an urgent reason and whether the requirements were met.
Unpaid wages. An employer repeatedly pays wages weeks late despite written reminders. The employee resigns with immediate effect, stating the reason in writing. Failure to pay wages on time is a statutory example of an urgent reason for the employee, and if the court accepts it the employee can claim compensation from the employer.
Leading Dutch Authority
Three judgments of the Supreme Court of the Netherlands shape how summary dismissal is assessed. Each is linked to the official text.
| Issue | Authority | Rule |
|---|---|---|
| How an urgent reason is assessed | Supreme Court of the Netherlands, 16 April 2021, ECLI:NL:HR:2021:596 | All circumstances of the case are taken into account together: first the nature and seriousness of the conduct, and further the nature and length of the employment, how the employee performed, and personal circumstances such as age and the consequences of a summary dismissal. |
| The communication requirement and the role of an investigation | Supreme Court of the Netherlands, 30 June 2023, ECLI:NL:HR:2023:1008 | Whether the reason was properly communicated and whether an urgent reason exists are separate questions. The absence of a proper investigation does not in itself prevent an urgent reason from existing. |
| Whether summary dismissal excludes the transition payment | Supreme Court of the Netherlands, 30 March 2018, ECLI:NL:HR:2018:484 (Dräger) | An urgent reason does not in itself mean that the dismissal results from seriously culpable conduct of the employee, which is the test for losing the transition payment. |
The rest of this page rests on Articles 7:677 to 7:679 of the Dutch Civil Code and the provisions on remedies and deadlines, each linked above to the current text on wetten.overheid.nl.