Dismissing an employee: here is how to handle it

Dismissing an employee in the Netherlands is not straightforward — you need a statutory ground for dismissal (Article 7:669 of the Dutch Civil Code) and must follow the correct procedure: UWV (economic reasons or long-term illness), subdistrict court (other grounds), settlement agreement (mutual consent), or summary dismissal (urgent cause). Additionally, a transition payment is due in almost all cases. It is not an easy route — but there are clear rules that you must follow.

The short answer: five routes

1. Settlement Agreement (VSO): mutual consultation, fastest route. See VSO.
2. UWV procedure: in the event of dismissal for economic reasons or long-term illness (after 104 weeks).
3. Sub-district court judge: in the case of other grounds for dismissal (poor performance, strained relationship, etc.).
4. Summary dismissal: for urgent reasons, with immediate termination.
5. Expiration of temporary contract: by operation of law, with notice period.

The statutory grounds for dismissal

Article 7:669 of the Dutch Civil Code recognizes grounds a–i (often abbreviated as a-ground, d-ground, etc.):

• Ground a: business economic circumstances → UWV procedure.
• Ground b: long-term incapacity for work (≥ 104 weeks) → UWV.
• Ground c: frequent absenteeism with disproportionate consequences → subdistrict court judge.
• d-ground: dysfunction — see dysfunction.
• e-ground: culpable act or omission.
• Ground f: refusal of work due to conscientious objection.
• Ground g: disrupted employment relationship.
• h-ground: other circumstances (residual category).
• i-ground (“cumulation ground”): combination of two incomplete grounds, since 2020.

Specific requirements apply to each plot of land — building a dossier is crucial for most.

The UWV route

In the case of ground a (business economic) or ground b (long-term illness):

• Application to UWV with supporting documentation.
• Employee given a deadline for defense.
• UWV decision within 4 weeks; if granted, the employer may terminate the contract subject to the notice period.
• Total lead time: 8–12 weeks.

In the case of dismissal for economic reasons, the mirroring principle applies: who must leave is determined by age group and position.

The subdistrict court route

For other grounds (c, d, e, f, g, h, i):

• Petition to the sub-district court.
• Employee responds; possible oral hearing.
• The judge assesses whether grounds exist and whether reassignment was not reasonably possible.
• Lead time: 3–6 months.

The judge can grant or reject the dismissal. If rejected, the employment relationship continues.

Transition payment

In the event of dismissal at the employer's initiative (except in cases of urgent cause), a transition payment is mandatory (Art. 7:673 BW): one-third of a monthly salary per year of service. Maximum €94,000 in 2024 or an annual salary in the case of higher income. Applies from day 1 since WAB (2020).

Summary dismissal

In the event of urgent cause (Art. 7:678 BW) — theft, violence, systematic refusal to work, forgery — immediate termination is permitted, without transition payment. Strict requirements:

• Immediately (within a few days) after discovery.
• Explicitly state the urgent reason.
• Record in writing.

Risk: in the event of wrongful summary dismissal, the employee can go to court with wage claims of up to tens of thousands of euros. Not without specialized advice.

File building — crucial

For ground d (dysfunction) and ground e (culpable conduct), the case file determines the likelihood of success:

• Performance reviews recorded.
• Official warnings — see official warning.
• Improvement plan with SMART goals and timeline.
• Written confirmation of agreements.

Without a case file, a ground for dismissal under a d-serious misconduct is virtually without merit before the subdistrict court.

Honest recommendation

Dismissing an employee is a major legal operation. In 80% of cases, a settlement agreement is faster, cheaper, and less contentious than the UWV or subdistrict court route. Engage an employment lawyer before you start — a wrong step often costs more than good guidance.

For the basics: employment contract and settlement agreement.

Frequently Asked Questions