Dismissing an employee can sometimes be quite a hassle. Employees are well protected in the Netherlands; there are certain rules that your employer must adhere to. In this article I will tell you how a dismissal procedure works.
Immediate clarity about your situation? Contact me and book a free consultation .
How does dismissal work?
In short, an employee can be dismissed if there are reasonable grounds for doing so, or if redeployment of the employee within a reasonable period of time, with or without the help of retraining, in another suitable position is not possible.
Your employer needs a dismissal permit for dismissal. To do this, he must have the dismissal assessed by the UWV or the subdistrict court judge. Exceptions to this are summary dismissal and dismissal by mutual consent.
Dismissal via the UWV
At the UWV your employer can go if the dismissal is based on illness or economic circumstances. On the UWV website three forms must be filled in to apply for the dismissal permit. Usually the employer receives the ruling within four weeks.
Dismissal via the subdistrict court
The employer can go to the subdistrict court to review the dismissal on other ‘reasonable’ grounds. See further on in this article what ‘reasonable’ grounds are.
Dismissal without dismissal permit or court order
Does the employee agree with the exit proposal? Then you can separate by mutual consent. In that case, nothing needs to be assessed, and the UWV or the subdistrict court are not involved. This also applies to summary dismissal, during the probationary period or when the employee reaches the state pension age. You then make agreements in a settlement agreement.
If the employer terminates the employment contract without having a dismissal permit, the termination is not valid. The employer must then continue to pay the employee wages.
Dismissal with a permanent contract
Here I will tell you what to look out for when your employer wants to fire you (without cooperation) for economic reasons, illness or personal reasons.
Dismissing an employee for business reasons or illness
In the case of business reasons or illness, your employer must apply for a permit from the UWV.
What are examples of business economic reasons?
• The company is experiencing financial difficulties and is financially unable to pay the wages of your employee(s).
• The company is automating and is financially unable to retain the employee(s) who will be eliminated due to automation.
Please note: if a dismissal committee has been set up in the collective labor agreement, your employer must request dismissal (for business economic reasons) from this committee and not from the UWV.
Conditions for dismissal due to illness
• Due to long-term illness, the employee can no longer do his work, there is no chance of recovery within 26 weeks and he cannot be redeployed, not even with retraining. If the UWV rejects the employer’s application, the employer can appeal to the subdistrict court within two months.
Dismissing an employee for personal reasons
Does your employer have ‘personal’ reasons to dismiss you? Then this also goes through the subdistrict court. Your employer must draw up a petition stating the reason for the dismissal. You and your employer then go to the subdistrict court and your employer must explain his decision orally. If you cannot reach an agreement, the judge will make a ruling.
Below you can read what exactly ‘personal’ reasons can entail.
• Employee is regularly absent due to illness. This causes a higher workload for other employees. In this case, the following conditions apply: the illness must not be work-related, the employee must still be regularly ill for the next 26 weeks, you have no other work available for the employee and his absence has negative consequences for your company.
• There is a labor dispute that can no longer be resolved.
• Your employee has acted culpably. For example, he committed theft or assaulted an employee.
• Employee functions inadequately. For example, the position does not suit him and there are no other positions available. The employer must have given the employee the opportunity and space to improve his performance.
• There is a serious conscientious objection. Examples of this are masseurs who do not want to massage men, assistants who do not want to assist with euthanasia or abortions, or people who do not want to perform certain activities because of their religion.
Preparing the dismissal procedure
The employer must immediately start building up a dismissal file for the employee. In this he records how the employee functions and what problems arise. This file also contains reports of performance reviews and reports of conversations with colleagues or customers.
How much does it cost to fire an employee?
The costs of dismissing an employee differ per situation. If your employer is granted a dismissal permit for business reasons, he does not have to pay anything. He also does not have to pay you a severance payment (but a transition payment).
In these cases your employer will incur costs:
• Dismissal due to conflict, reorganization or dysfunction. In these cases, your employer must pay for the lawyer or employment lawyer who helps with the dismissal procedure, plus any severance payment if the subdistrict court decides so.
• Dismissal by mutual consent. Your employer does not have to pay procedural costs, but often does have to pay a (severance) compensation. The employee’s age and length of service influence the costs of dismissal. The older and the longer the employee has been employed, the more expensive it becomes.
How does collective dismissal work?
Does your employer have to dismiss more than 20 employees within three months who work in the same area? Then this is a collective dismissal. Your employer must still go through a dismissal procedure per individual and you must report the dismissal to the UWV and the trade union. A social plan is then drawn up with the trade union. More information about collective dismissal can be found on the website of the Central Government.
Dismissal via settlement agreement
A dismissal via the UWV or the subdistrict court is not easy. That is why in most cases it happens via negotiations that are recorded in a settlement agreement. In order to make the negotiations run smoothly, an employment lawyer or employment law attorney is called in.
Read more here about matters that can be arranged in a settlement agreement.
Hire an expert lawyer or employment attorney
Whatever route your employer takes, I am happy to help you. When concluding a settlement agreement, the legal costs for my assistance are in the vast majority of cases reimbursed by the employer.
Tell me your story. Make an appointment now for a free intake interview .
Frequently Asked Questions
When can my employer legally dismiss me in the Netherlands?
An employer may only dismiss you if a valid statutory reason exists (for example: underperformance, misconduct, long-term illness, re-organisation) or if you agree.
Can my employer fire me during my probation period without giving a reason?
Yes, during the probation (trial) period your employer can terminate the contract without having to justify it, although you still have the right to know the reason if you ask.
What are valid grounds for dismissal due to business reasons or re-organisation?
If the company faces economic difficulties, restructuring, or a job disappears, this may count as a valid ground, but permission from UWV (Employee Insurance Agency) may be required.
Can I be dismissed if I’m ill or on sick leave?
You cannot be dismissed during the first two years of illness simply because you are ill. The employer must attempt reintegration first. Dismissal on that ground requires special procedure.
What happens if the employer dismisses without valid reason or correct procedure?
If the proper ground is missing or procedure (e.g., permission from UWV or court) is not followed, the dismissal may be invalid and you could be entitled to compensation.
If I agree to be dismissed (mutual consent), what should I look out for?
A mutual termination agreement (settlement) can be made, but you should check things like your transition payment, notice period, and your rights to reconsider the agreement (cooling-off period).
