Are you confronted with dismissal? Employees who are laid off under Dutch law, are well protected. Make sure you know about your legal rights if you're getting dismissed. Here is how to secure your unemployment benefits and increase your severance payment.
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If you are employed by a Dutch company, you can basically only be dismissed if your employer has a valid reason to do so. For example, if you perform poorly or misbehave despite several warnings. Dutch labor law prescribes which grounds for dismissal are permitted. You'll find the most common reasons here.
There are exceptions though. Dismissal by mutual consent is one of them. If you and your employer mutually agree to end your employment contract, you can do so by drafting a settlement agreement. In some occasions your employer might offer you a settlement agreement, even though there is no valid dismissal reason. If that happens, you are in a strong negotiating position.
In some cases you can't be laid off at all. That might occur if you're ill or pregnant. In others, there is no reason required to fire you. For instance if you have reached retirement age or if you're still in your trial period.
If no dismissal procedure has yet been initiated, there is little you can do legally. Of course you can read up and try to turn the tide based on our tips below, assuming you want to stay employed. If your employer doesn't take the first step towards your dismissal, but you are fed up with the uncertainty or the negative atmosphere, you could initiate dismissal yourself. Call us first to obtain free legal advice.
Let's imagine you've had it with your employer and you're willing to cooperate towards termination of your employment contract. It could actually turn out to be a positive thing when you're able to shift focus to a new job and enjoy a fair severance package.
The optimal way of termination a labour agreement is through dismissal by mutual consent. What this procedure boils down to is that both you and your employer mutually agree to end your employment contract. You need to draw up a settlement agreement to record the terms of dismissal. You are not entitled to a transition payment, but you do need to reach a final settlement. A final settlement contains agreements about unused vacation days, dismissal compensation or severance payment. Make sure to take the notice period into account.
Another possibility to end a labour contract is through termination with consent. This means that your employer initiates the dismissal, but you agree to it in writing. Although you are entitled to a transition payment, you are not able to negotiate about your dismissal terms. We discourage employees to agree to this procedure. It makes negotiating impossible and limits your rights to unemployment benefits after your dismissal.
Dismissal by mutual consent as well as termination with consent don't need approval by the Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen) or a sub-district court. You are entitled to reconsider the dismissal within 14 days without giving a reason. If your employer left the reconsideration period out in your termination agreement, this period will automatically extend to 21 days.
Have you just received a settlement agreement or are you willing to resign based on mutual consent? Have our labour lawyers perform a basic check to find out what's missing or should be improved. That doesn't cost you anything.
Is your (intended) dismissal justified?
Can your severance pay increase?
Unemployment benefits secured?
What are the correct legal steps?
We'll get started within 4 hours.
This basic check is free of charge.
If you don't agree to the intended dismissal, your employer needs to initiate a formal procedure with the Employee Insurance Agency (UWV) or the sub-district court. The stated reason for dismissal determines which one of them has to grant their permission.
Your employer has to request a dismissal permit to the Employee Insurance Agency (UWV) in case one of the following two dismissal reasons applies:
You can't get dismissed without a dismissal permit. If the UWV doesn't grant permission, your employer has to turn to the sub-district court and start proceedings for termination of your employment contract. If your collective labour agreement (CAO) provides a (sector) dismissal committee, it's common practise to have them evaluate an intended dismissal for economic reasons.
For all other dismissal reasons (C to H) your employer has to send a request for the termination of your employment contract to the sub-district court. A court judge will check if all of the relevant legal criteria have been met to terminate.
If your employer provides multiple reasons for your dismissal, they can be combined. A sub-district can be asked for dismissal on cumulative grounds (I). If granted, it's possible that you are entitled to an additional severance payment on top of the transition payment. That extra sum is at most 50% of the statutory transition payment.
If you are dismissed without a dismissal permit from the UWV or approval of the sub-district court and it turns out that it was mandatory, your dismissal is not legally valid. You can ask the sub-district judge to undo your dismissal. Your employment contract will continue to exist and you are entitled to your regular wages.
Be aware of the fact that your employer doesn't need permission for dismissal in the cases below:
The basic rule for qualifying for a transition payment (a statutory severance payment) is that you cannot be blameworthy. If your empoyer initiates the dismissal, you are probably entitled to a transition payment.
You are entitled to a transition payment if your fixed-term contract isn't extended, if you are dismissed via the UWV or the subdistrict court on valid grounds or if you resign following serious culpable conduct or negligence on part of your employer. You may even be eligible for fair compensation.
If you resign yourself, if you agree to dismissal by mutual consent or if you are to blame for your dismissal (due to culpable conduct or negligence), you are not entitled to a transition payment. With our help and a proper settlement agreement you could still succeed in obtaining a fair severance payment.
Most employees that are confronted with dismissal ask us the following questions.
We are happy to inform you about your legal rights in case you are confronted with dismissal. You can call us free of charge. If you fill out the form below, we will call you back at an appropriate time.