Labor Laws
Netherlands
Termination of Employment Contracts

Termination of Employment Contracts

  1. What are the grounds for legally terminating an employee?
    Employees can be terminated for reasons such as economic necessity, performance issues, or misconduct, but the employer must follow strict procedural requirements .

  2. Do employees need to be informed about termination?
    Yes, an employer must provide adequate notice and may need to obtain permission from the Employee Insurance Agency (UWV) if the termination is for economic or incapacity reasons .

  3. What notice periods must employers follow when terminating employees?
    The notice period varies based on employee tenure, ranging from 1 month (for <5 years of service) to 4 months (for >15 years) .

  4. Can employers dismiss an employee without notice?
    Yes, if the employee has committed serious misconduct (e.g., fraud, violence), the employer can immediately terminate the contract without notice .

  5. What is the transition (severance) payment requirement?
    Employees are entitled to a transition payment if they are terminated without cause. This payment is based on length of service and salary .

  6. How long does an employee have to challenge a termination?
    Employees must file a challenge within 2 months after receiving the termination notice. If they fail to act, the dismissal is deemed accepted .

  7. Are there any restrictions on dismissing sick employees?
    Yes, an employee on sick leave cannot be dismissed within 2 years of the sickness unless the employer can prove redeployment is impossible .

  8. Can employers dismiss employees during probation?
    Yes, during the probationary period, employers may dismiss employees without cause, following the contract’s terms .

  9. What steps should an employer take before dismissing an employee?
    Employers must first ensure that procedures are followed, such as obtaining a dismissal permit from the UWV or approval from the court for certain reasons .

  10. Can an employer dismiss an employee who is pregnant?
    No, pregnant employees are protected from dismissal during pregnancy and for a period after birth (up to 6 months post-birth) .

  11. What is the process for terminating employees for performance issues?
    Employers must document the performance issues, give the employee an opportunity to improve, and seek UWV approval if necessary for the termination .

  12. Can an employee challenge their dismissal?
    Yes, employees have the right to appeal the dismissal, typically through the Cantonal Court or by submitting a complaint to the Human Rights Institute for discrimination-based dismissals .
  13. How can employers avoid wrongful dismissal claims?
    Employers should follow due process (e.g., warnings, performance reviews, consultation) and ensure the dismissal is for a lawful reason, with adequate proof .

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