send mail
  • Dutch contract law
    • Contract law in the Netherlands
      Dutch contract law
      Precontractual liability in the Netherlands
      Acceptance under Dutch contract law
      Battle of forms under Dutch law
      Nullity and annulment of a contract
      Contract error under Dutch law
      Joint liability under Dutch law
      Surety agreements
      Contents of a contract
      Reasonableness and fairness
      General terms under Dutch law
      Penalty clauses under Dutch law
      Assignment of a claim
      Actio Pauliana under Dutch law
      Contract interpretation
      Performance, breach, remedies
      Breach under Dutch contract law
      Force majeure
      Termination for breach
      Exemption clauses
      Limitation of actions
      Corona and contracts
      Types of contract under Dutch law
      Licenses under Dutch law
      Franchise under Dutch law
      Sale of Goods under Dutch law
      Lease under Dutch law
      Commercial Agency under Dutch law
      Distribution contracts
  • Dutch employment law
    • Employment law in the Netherlands
      Dutch employment law - 101
      Employment attorney
      Non-competition
      Non-compete clause
      Employment probation period
      Employment trial period
      Employment contract under Dutch law
      Employment duration
      Fixed-term and permanent
      Employment termination
      Termination of employment
      Ways to terminate employment
      Employment contract termination
      Employee termination
      Termination by mutual consent
      Dismissal of an employee
      Dismissal procedures
      Dismissal of an ill employee
      Summary dismissal under Dutch law
      Dismissal protection under Dutch law
      Dismissal payment in the Netherlands
      Employment law - miscellaneous
      Obligations of employers
      Sick pay
      Dutch employment lawyer
      Dutch works councils
      Business reorganization
      Collective redundancy
      Dutch freelance contracts
      Recruitment agency contracts
  • Litigation
    • Court proceedings in the Netherlands
      Litigation in the Netherlands
      Dutch legal proceedings
      Civil proceedings in the Netherlands
      NCC - Commercial Court proceedings
      Appeals in the Netherlands
      Decisions & rulings
      Preliminary relief in Dutch law
      Freezing orders in the Netherlands
      Remedies in Dutch litigation
      Conservatory arrest of assets
      Limitation periods in Dutch law
      Jurisdiction & scope
      Dispute resolution under Dutch law
      Jurisdiction of the NCC
      Personal jurisdiction of the NCC
      Arbitration in the Netherlands
      Costs & claims
      Debt collection in the Netherlands
      Commercial debt colection
      Debt collection compliance
      Consumer rights in debt recovery
      Cross-border debt recovery
      Claiming damages under Dutch law
      Extrajudicial costs under Dutch Law
      Costs of litigation in the Netherlands
  • Dutch lawyers
    • Best litigation, ICT & IP lawyers
      Best litigation lawyers in the Netherlands
      Best employment litigation lawyers
      Best ICT lawyers in the Netherlands
      Best IP lawyers in the Netherlands
      Best family lawyers in the Netherlands
      Best divorce lawyers in the Netherlands
      Best business and employment lawyers
      Best business lawyers in the Netherlands
      Best corporate lawyers in the Netherlands
      Best contract lawyers in the Netherlands
      Best M&A lawyers in the Netherlands
      Best labour lawyers in the Netherlands
      Best dismissal lawyers in the Netherlands
      Best Dutch immigration lawyers
      Finding & hiring a lawyer in the Netherlands
      Choosing a lawyer in the Netherlands
      Finding a Dutch employment lawyer
      Lists of lawyers in the Netherlands
      Hiring a Dutch attorney
      Resources about Dutch lawyers
      Dutch Bar Association
      Ranking litigation attorneys
      Top ranked civil litigation lawyers
      About lawyers in the Netherlands
  • About us
  • Contact us

Termination of employment - in the Netherlands

  • Dutch law
  • Employment law
  • Termination of employment in the Netherlands

How do you terminate employment in the Netherlands?

Termination of employment in the Netherlands

Dutch employment law offers far reaching protection to employees with respect to dismissal and termination of their employment. Generally there are four ways to terminate an employment contract:

  1. by mutual consent
  2. by permission from the Dutch Employment Insurance Agency (UWV WERKbedrijf)
  3. by dissolution of the contract by the cantonal court
  4. by summary dismissal for urgent cause.

Termination of employment under Dutch law by mutual consent

In many cases employer and employee agree to terminate the employment contract by mutual consent and agree to an amicable settlement. In such cases, no prior permission is required from the authorities. Employer and employee must agree a written settlement agreement regarding termination and severance pay to satisfy the employment authorities that dismissal is not due to the fault of the employee, thus curtailing his or her right to unemployment benefit. The employee has a reflection period of 14 days from signing an agreement to terminate employment within which the employee may rescind the agreement.


Termination of employment under Dutch lawby permission of the UWV

If the employer wants to give notice to an employee on economic grounds or after a period of illness of more than two years, the employer will first have to obtain permission to terminate the contract from the Employment Insurance Agency (UWV WERKbedrijf). Notice given without such permission is null and void.

The UWV reviews whether there are valid reasons for termination, such as company restructuring or closure. The grounds for termination must be substantiated with sufficient evidence, such as recent company accounts, prognoses etc.

The employee may file objections to the request and in total it takes 8 to 12 weeks for the UWV to decide whether to grant permission. Unless there are clear grounds for dismissal, the UWV may, however, refuse permission.
Once permission has been obtained, the employer may give notice. At the end of the notice period, the contract will be officially terminated and no further compensation is due.

If the employee has been employed by the company for more than two years severance pay is due to the employee upon termination of the employment contract..


Dissolution of employment under Dutch law by the cantonal court

If an employer has other grounds for terminating the employee's contract, the employer must apply for leave to dissolve the employment contract through the courts. If, for example, an employee is structurally underperforming or has been accused of gross negligence, then the courts must be applied to for a dissolution.

Severance pay is due to the employee with over two years of service unless the employee is to blame for the circumstances leading to the request, in which case compensation can be set at zero.


Severance pay under employment law in the Netherlands

As of 2015 severance pay has been set by the government and is due irrespective of which route termination takes (via agreement, permission or court order).

The calculation of severance pay is as follows:

  1. 1/6 gross monthly salary (including holiday pay, fixed bonuses etc.) for every six months service during the first 10 years of employment;
  2. 1/4 monthly salary for every six months service thereafter;
  3. If an employee is over 50, they are entitled to one full months' salary per year served over the age of 50 (this rule will expire in 2020).

The award is capped at € 75,000 (plus indexation as of 2016) or a years (gross) salary, whichever is greater. There are also some special rules for small employers and companies in serious financial difficulty, but in most cases the above will be applicable.

In cases of unfair dismissal or gross misconduct by the employer, the courts may award an equitable amount of extra severance pay to compensate the employee. As this legislation is relatively new, there are no exact guidelines in place yet as to when an equitable award will be granted. These damages are not capped.


Summary dismissal of an employee in the Netherlands for urgent cause

Employment attorney in the Netherlands

Under Dutch emplyment law, an employer may dismiss an employee for an urgent cause with immediate effect, in case of serious misconduct. Summary dismissal is used in cases of theft, fraud, situations immediately endangering others, repeatedly refusing to follow urgent instructions etc.

Summary dismissal is the heaviest sanction that an employer can invoke, so the reasons for dismissal must warrant that the employer in all reasonableness cannot tolerate the employee on the work floor anymore. In such cases no prior permission by the courts or Employee Insurance Agency is required. However, the employee must be notified forthwith about the dismissal and can dispute the urgent cause. As the employee will forfeit all rights to unemployment benefit if the dismissal stands, in most cases the employee will contest the dismissal. In such cases, it is often wise to file a conditional petition for dissolution of employment, in case the employee is reinstated by the court.

As an experienced employment lawyer in the Netherlands, I am able to advise clients on all aspects of termination of employment under Dutch law. I would be happy to discuss further details regarding this.


Eva Jongepier - employment lawyer in the Netherlands
June 20th, 2024

About the author

Employment lawyer in the Netherlands - Eva Jongepier

Eva Jongepier is an acclaimed employment lawyer in the Netherlands with more than 22 years of experience.

With specializations in employment termination and litigation under Dutch employment law, Eva stands out as employment attorney for her keen analytical abilities and sound legal advice she provides to clients. Eva's clients range from individuals and small/medium-sized enterprises to large corporations.

As Dutch employment attorney, she is highly regarded for her professionalism and efficiency when resolving complex employment disputes. With an in-depth knowledge of Dutch employment law, Eva stays current on legal developments and changes within this field.


Contact Eva

Please feel free to contact Eva if you have any question regarding employment law in Holland.


Dutch employment law
Employment contract law
Dutch employment law Non-competition Non-competition clauses Probation period Trial periods Dutch employment contract Employment duration Fixed-term and permanent
Employment termination
Termination of employment How do you terminate? Employment contract termination Termination by mutual consent
Dismissal
Dismissal procedures Employee termination Dismissal of an ill employee Summary dismissal Dismissal protection Dismissal payment
Employment -miscellaneous
Obligations of employers Sick pay Dutch employment lawyer Works council Business reorganization Collective redundancy Dutch freelance contracts Recruitment agency contracts
Questions about Dutch employment law? Contact Eva
Terms of use and privacy policy:

The content provided on www.dutch-law.com is offered by the Dutch Law Institute for general information purposes only.
It cannot deal with the specific details of any particular situation ... [read more]

Address:
Dutch Law Institute
Beethovenstraat 124-3
1077 JR Amsterdam
The Netherlands
Telephone:

+31 65224 2503

Hours:

Monday 9am–5pm
Tuesday 9am–5pm
Wednesday 9am–5pm
Thursday 9am–5pm
Friday 9am–5pm
Saturday Closed
Sunday Closed

Dutch Law Institute
  • About the Dutch Law Institute
  • Dutch Law Intitute on LinkedIn
  • Netherlands employment law
Published by the Dutch Law Institute - edited by Jan Willem de Groot, lawyer in the Netherlands - © 2021 - 2025, Dutch Law Institute | Sitemap [XML]