Dispute between colleagues: is dismissal possible?

Yes, a dispute between colleagues can lead to dismissal, but never without justification. A conflict between employees (a horizontal disruption) can constitute valid grounds for dismissal if the relationship is seriously and permanently disrupted as a result, and you, as the employer, have demonstrably attempted to resolve it. Only then can the court dissolve the employment contract on the so-called g-ground. If that fails, often only a mutual agreement remains, such as a settlement agreement. As an employer, your success depends on having a solid case file.

What is the g-ground for dismissal?

The g-ground is one of the statutory grounds for dismissal under employment law (Article 7:669 paragraph 3 sub g of the Dutch Civil Code). It concerns a disrupted employment relationship that is so serious that the employer can no longer reasonably be expected to continue the employment. The judge assesses whether a number of conditions have been met:

• The disruption is serious and lasting; a one-off incident is usually not enough.
• Restoration of the relationship is no longer reasonably possible.
• The employer has made demonstrable efforts to restore the relationship, for example through discussions or mediation.
• It has been investigated whether reassignment to another suitable position within a reasonable timeframe offers a solution.

Important: for the g-ground, as an employer, you do not need to prove that the employee is to blame for the conflict. A disrupted employment relationship can exist even without blameworthy conduct on the part of the employee. However, the question of fault does play a role in determining whether, and at what amount, any additional compensation will be paid.

Vertical versus horizontal distortion: what is the difference?

Traditionally, the g-ground is used in the case of a vertical disruption: a conflict between the employee and their supervisor or the employer. This is logical, as it is ultimately the employer who wishes to terminate the employment.

Disputes between colleagues constitute a horizontal disruption: the conflict occurs between employees at the same level. The question then arises whether such a horizontal conflict can nevertheless justify dismissal. The answer is yes, but with an additional threshold: the horizontal disruption must be serious enough to affect the relationship with the employer as well, thereby constituting a vertical disruption. Only then does the g-ground come into play.

That distinction is important in practice. In the event of a conflict between two colleagues, as an employer you often cannot simply dismiss one of them: you must be able to explain why continuing the employment with that specific employee can no longer be expected of you, and why a less drastic solution (such as a transfer) does not offer a solution.

When is a conflict “serious and lasting” enough?

There is no fixed standard, but case law reveals a number of indicators that make a disruption more serious:

• The dispute has been ongoing for a long time and keeps resurfacing, despite intervention.
• The collaboration has become unworkable in practice and affects service delivery or other colleagues.
• Previous attempts at a solution (discussions, coaching, mediation) have not yielded lasting results.
• One or more parties involved refuse to cooperate in the restoration.

The more of these signals demonstrably present in your file, the greater the chance that the judge will accept the g-ground. Conversely, a thin file, an impulsive request for dismissal, or a conflict that you allowed to escalate yourself increases the likelihood of rejection or a higher compensation.

How did the judge rule? A practical example

A ruling by the Arnhem-Leeuwarden Court of Appeal clearly illustrates how this plays out in practice. At the secretariat of a welfare organization, four secretaries were required to collaborate in a self-organizing manner. From the very beginning, this failed: there were constant disputes over the division of work, replacement during absences, and ultimate responsibility.

The employer intervened step by step. Several coaches were appointed, but this did not bring calm. When one of the secretaries decided not to sit with the others anymore, the director called her to order; this was unworkable for good service delivery. The employee in question subsequently reported sick. Following the intervention of the company doctor, multiple mediation processes were initiated, which concluded that a structural, sustainable solution was not feasible.

When the employee wanted to return to work, she refused a four-way meeting with her colleagues, while the other three agreed to it. For the employer, this was the last straw. He asked the court to dissolve the employment contract on the grounds of a disrupted working relationship.

The outcome

Both the sub-district court and the Court of Appeal ruled that a horizontal disruption can indeed justify dismissal, provided it is serious enough to also constitute a vertical disruption and the other conditions of the g-ground are met. In this case, the disruption was sufficiently serious and lasting, and the employer had made sufficient efforts, including through coaching and mediation. The employment contract was dissolved.

Nevertheless, in addition to the statutory compensation, the employee was also equitable compensation . The reason: there was no question of seriously reprehensible conduct on her part, she was in a vulnerable position, and she was able to demonstrate a long and impeccable employment record prior to the conflict. Equitable compensation is not awarded as a matter of course; this only happens in exceptional circumstances and depends heavily on the facts of the case.

What does a dismissal cost in the event of a strained employment relationship?

In the event of dismissal on the grounds of the g-ground, you will almost always have to deal with severance pay. It is important to distinguish between two types of compensation:

• The transition payment. This is the statutory compensation to which an employee is, in principle, entitled upon dismissal. The amount depends on the salary and the duration of employment and is calculated according to a statutory formula. You can count on this in virtually every dismissal.
• The equitable compensation. This is an additional compensation that the judge awards only in exceptional cases, in addition to the transition payment. Factors often include the fact that the employer acted with serious culpability or that the employee is in a vulnerable position. The amount is determined on a case-by-case basis and can vary significantly.

In addition, costs often mount unnoticed during a conflict: absenteeism, loss of productivity, mediation, legal assistance, and the impact on the team. The sooner you address a conflict seriously, the greater the chance you will avoid expensive and protracted proceedings. If you would like to know what to expect financially, our legal experts can provide an estimate based on your situation.

What steps do you take before going to court?

A dispute between colleagues is not, in itself, a license for dismissal. A judge does not always accept the grounds for dismissal based on the serious misconduct of colleagues, and a case file that is too weak often leads to dismissal or (higher) compensation. If you want to handle the conflict in a responsible manner, pay attention to the following:

1. Document the conflict. Keep track of what is happening, when, and with whom. A good file is decisive in the event of dismissal.
2. Demonstrably invest in recovery. Consider conversations, coaching, and mediation. The judge wants to see that you have made a serious attempt.
3. Issue a warning where necessary. In the event of transgressive or structurally unworkable behavior, a written warning documents that you have addressed the employee and what you expect.
4. Investigate reassignment. See if another position or department can resolve the conflict before pursuing termination.
5. Be careful with escalation. If you caused or exacerbated the conflict yourself, this can weaken your position and increase compensation.
6. Consider a mutual agreement. If continuation is truly not possible, a settlement agreement is often faster and calmer than legal proceedings.

Unsure about the strength of your case? Our employment law will assess your situation and advise on the most promising course of action. If you would like broader advice regarding your rights and obligations as an employer, please visit our page on employment law.

Frequently asked questions about dismissal due to a dispute between colleagues

Can you dismiss an employee due to a conflict with a colleague?

That is possible, but not automatically. The conflict must seriously and permanently disrupt the employment relationship, restoration must be reasonably impossible, and you, as the employer, must have attempted to resolve the situation. Only then can the court dissolve the employment on the grounds of serious and lasting disruption.

Do I need to be able to prove who is to blame for the fight?

No. For the g-ground, it is not required that the employee is at fault for the conflict. However, the question of fault is relevant to the question of whether, and at what amount, any equitable compensation will be awarded.

Is the employee entitled to compensation upon dismissal due to a disrupted employment relationship?

In principle, the employee is entitled to the statutory transition payment. In exceptional cases, the court may also award equitable compensation, for example in the event of a vulnerable position or culpable conduct by the employer. The exact amount depends on the circumstances of the case.

What if the employee refuses to cooperate with mediation?

Refusal to cooperate in reconciliation, for example through a conversation or mediation, can work to the employee's disadvantage. It demonstrates that restoring the relationship is no longer feasible, which can substantiate the g-ground.

Is mediation mandatory before I go to court?

Mediation is not legally mandatory, but a judge does expect you to have made a demonstrable effort to restore the relationship. Mediation or coaching is a strong and common way to demonstrate this.

Can I fire both people fighting?

That is not straightforward and is legally risky. For each employee individually, you must be able to substantiate why the continuation of that specific employment can no longer be expected of you and why a less drastic solution offers no way out. Often, a transfer or a targeted process involving either of them is a more sensible first step.

How long does such a dismissal procedure take?

Dissolution proceedings before the subdistrict court typically take several months, depending on the complexity and the workload at the court. A mutual settlement via a settlement agreement is often arranged considerably faster.

Conflict in the workplace? Seek advice

Resolving an employment dispute carefully requires a solid case file and the right legal steps. Our legal experts assist you in building that file, conducting negotiations, and—if it comes to that—going to court or reaching an amicable settlement. We also draft the accompanying documents for you, such as an official warning letter, a notice of dismissal , or a settlement agreement.

Do you want to know the smartest route in your situation? Schedule a no-obligation intake and discuss your case with one of our employment law specialists.