Dismissal in the Netherlands: When is it allowed and what are your rights?

You are working in the Netherlands. Suddenly, your employer informs you that they want to dismiss you. You might wonder whether this is allowed to happen just like that. When can an employer dismiss you? What are the legal requirements? Do you have the right to a severance payment? And what about unemployment benefits?

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There are always so many questions. Dismissal Specialist has lots of experience helping expats understand their rights when faced with dismissal. Here are some of the answers that you need.

Reasons for dismissal

Your employer may only dismiss you (ontslag in Dutch) if they have a valid reason, also known as reasonable grounds, for doing so. The law specifies when there is a valid reason. These are the most common reasons:

• For business or economic reasons. This includes the elimination of your position or a (major) reorganisation.
• Underperformance. If you demonstrably do not perform well (disfunctioneren), this can be a reason for dismissal. Your employer must first give you sufficient opportunity to improve your performance and assist you in doing so. This is called a performance improvement plan.
• If an employee behaves improperly. Improper behaviour can take many forms, such as aggressive behaviour, sexual misconduct, working under the influence of alcohol or drugs, threatening colleagues or failing to meet reintegration obligations during illness. Serious improper behaviour can even lead to dismissal without notice.
• A broken working relationship with your employer. If there is a seriously broken relationship between you and your employer, or between you and a colleague, this can be grounds for dismissal. However, your employer must first attempt to resolve the broken relationship, for example, through mediation.
• A combination of reasons. Your employer can dismiss you based on several dismissal reasons. For example, a poorly performing employee who also behaves improperly toward colleagues.

During the first two years of illness, you cannot be dismissed. You have dismissal protection during this time. However, after two years of illness, dismissal can occur.

Can you be redeployed?

Even if there is a valid reason for dismissal, your employer must investigate whether you can be redeployed. This condition particularly applies if the dismissal is for business economic reasons, including reorganisation. Many expats work for international companies that have multiple locations, often in several countries. If your job in the Netherlands is eliminated, your employer must explore whether you can be redeployed to another position, even in another country.

If your employer fails to meet this redeployment obligation, this can be a valid reason to challenge the dismissal or negotiate for a higher severance payment. Ontslagspecialist can assist you with this.

Severance payment and unemployment benefits

Most employees who are dismissed have the right to unemployment benefits. Dismissal Specialist can help ascertain if this applies in your case.

If you are dismissed in the Netherlands, you are generally entitled to a severance payment. The minimum compensation is one-third of your gross monthly salary per year worked.

Often, your employer will offer a higher severance payment, or employment lawyers can help you negotiate a better settlement (vaststellingsovereenkomst).  This may include not only a higher severance payment but also a period of paid leave, a positive reference, removal of the non-compete clause, outplacement compensation, among other things.

Help is available

Dismissal laws in the Netherlands are not simple, and not all companies meet their obligations when it comes to letting people go. Therefore, it is advisable to seek legal help if dismissal is imminent or has already happened.

The experts at Dismissal Specialist have been helping employees with dismissal for more than 25 years. They are 100% committed to you and use their specialised knowledge and expertise to ensure full customer satisfaction. They can try to prevent your dismissal or secure you a fair settlement. 

Would you also like to be assisted with your dismissal? Don’t hesitate to contact their specialists. Call Dismissal Specialist on +31 20 6160 120 or email them at info@ontslagspecialist.nl. The first consultation is always free.