What grounds of dismissal are permitted?
You can dismiss your employee:
Find more information (in Dutch) here about reasons for dissmissal.
Transition payment upon dismissal
Upon dismissal, you often have to pay a transition payment (ontslagvergoeding). This is a payment as compensation for dismissal. The amount depends on the monthly salary and the number of years the employee worked for you. Does the subdistrict court (kantonrechter) terminate the employment agreement based on cumulative grounds (in Dutch)? The court can award an additional compensation in addition to the transition compensation. This additional compensation is a maximum of 50% of the transition compensation.
When can you dismiss your employee without grounds?
- when your employee has reached the statutory or any other retirement age;
- when you dismiss your employee during a trial period.
When are you not allowed to dismiss your employee?
There are a number of situations in which you cannot dismiss your employee, namely:
- in the first 2 years that your employee is sick or unfit for work;
- if, during sick leave, you have not done enough to facilitate your employee’s return to work;
- during pregnancy, pregnancy and maternity leave and 6 weeks thereafter;
- in the first 6 weeks after incapacity for work due to pregnancy or childbirth;
- because your employee wants to take parental leave;
- during membership in a staff representative body;
- during compulsory military or alternative service in the country of origin;
- if your employee is a member of a trade union or a political organisation;
- for reasons of discrimination on grounds of religion, race, age or disability;
- if your employee refuses to work on Sundays;
- if your company is taken over;
- if your employee works for you as an expert (arbodeskundige) under the Working Conditions Act (Arbeidsomstandighedenwet);
- if your employee is a data protection officer under the Dutch Data Protection Act (Wet bescherming persoonsgegevens).
Employee dismissal procedures and notice period
Are you going to dismiss your employee? If so, you must comply with the dismissal procedures. Think about the notice period, for example. The notice period depends on the duration of the contract. Does your employee have a permanent contract? Then the notice period is 1 month. Your employee must give 1 month's notice. You can make other agreements with your employee. Does your employee have a fixed-term contract? For example, for 1 year or 6 months? Then the contract ends on the agreed end date. You can agree that your employee can give notice earlier. This agreement must be included in the contract. Which steps you take next may vary. It depends, for example, on whether your employee agrees to the dismissal.
Read more about dismissal procedures.
What if your employee resigns?
An employee does not have to give a reason for resigning. If your employee resigns of their own volition, you do not have to pay a transition payment. However, if your employee leaves due to your own serious wilful misconduct or negligence, which has impaired the working relationship, then your employee is entitled to transition payment.