Disrupted working relationship: dismissal in the Netherlands

Can a Dutch employer dismiss an employee because the working relationship has broken down? Yes, but only with a decision of the subdistrict court (kantonrechter) and only if the relationship is so seriously and permanently disrupted that the employer cannot reasonably be expected to continue the employment contract. A disagreement, irritation or a single incident is not enough.

This dismissal ground is known as the g-ground, after article 7:669(3)(g) of the Dutch Civil Code (DCC). Employers invoke it often, and courts reject it often, usually because the employer cannot show that the relationship is beyond repair.

What does Dutch law say about a disrupted working relationship?

Article 7:669(3)(g) DCC allows dissolution of the employment contract where the working relationship is disrupted to such an extent that the employer cannot reasonably be required to continue it. Unlike dismissal for economic reasons or long-term illness, this ground does not run through the Employee Insurance Agency (UWV), but through the subdistrict court.

The employer files a petition for dissolution (ontbindingsverzoek) under article 7:671b DCC. The employee can file a written defence and explain their position at an oral hearing.

The court also applies the two general requirements of article 7:669(1) DCC:

the employer must substantiate a reasonable ground for dismissal;
redeployment within a reasonable period to another suitable position, with or without training, must not be possible or not be reasonable.

The g-ground concerns the relationship itself. It differs from the d-ground, which covers inadequate performance, and the e-ground, which covers culpable conduct by the employee.

When is a working relationship disrupted enough for dismissal?

The disruption must be serious and lasting. The court looks at the situation at the time of the hearing, not at how the employer experiences the relationship.

In practice, the court weighs these questions:

Is there a concrete, documented conflict, or only a general impression that cooperation is difficult?
How long has the conflict lasted, and does it affect the daily work?
Have both parties made genuine efforts to restore the relationship, for example through talks with a manager, HR or a mediator?
Is the conflict limited to one manager, team or location?
To what extent did each party contribute to the disruption?

An employer that deliberately creates a conflict, or lets it escalate, to obtain a dismissal weakens its own case. The court may then reject the petition, or grant it and award the employee fair compensation (billijke vergoeding).

The employee’s position also counts. If the employee states that the relationship can be restored and is willing to cooperate, the employer must explain convincingly why restoration is no longer realistic.

Is mediation mandatory before dismissal on the g-ground?

No, the law does not require mediation. Courts do expect the employer to have made a serious attempt to restore the relationship, and mediation is the most common way to show that.

Mediation is not always suitable. The nature of the conflict, the degree of escalation or the parties’ positions can make it pointless. In that case, the employer should record why it chose a different approach.

If mediation takes place, agree on confidentiality in writing beforehand. What is said in mediation can then generally not be used in later court proceedings.

What must an employer document before going to court?

The employer carries the burden of proof. A petition stands or falls with the file (dossier) built in the months before it is filed.

A solid file usually contains:

Written reports of conversations about the conflict, confirmed by e-mail to the employee.
Concrete incidents with dates, the people involved and the consequences for the work.
Proposals to restore the relationship and the employee’s responses to them.
A mediation proposal or report, or a reasoned explanation of why mediation was not suitable.
An assessment of redeployment options, including vacancies elsewhere in the group where relevant.

The file must be consistent. Positive appraisals, a recent pay rise or a long period without documented concerns sit uneasily with a claim that the relationship has been broken for years. Courts notice such contradictions and give them weight.

Can redeployment prevent dismissal?

Yes. Before the court dissolves the contract, the employer must show that redeployment to another suitable position within a reasonable period is not possible or not reasonable (article 7:669(1) DCC).

This assessment is not limited to the employee’s own team. Vacancies elsewhere in the organisation, and in some cases within the group, can also be relevant.

Redeployment matters most where the conflict is limited to one manager, department or location. If a transfer offers a realistic solution, dismissal on the g-ground is difficult to justify.

Which payments are due when the contract is dissolved?

An employee whose contract is dissolved on the g-ground is in principle entitled to the statutory transition payment (transitievergoeding) under article 7:673 DCC. It amounts to one third of a monthly salary per year of service, calculated from the first day of employment, with a cap of EUR 102,000 in 2026 or one annual salary if that is higher.

The transition payment lapses only if the termination results from seriously culpable acts or omissions (ernstig verwijtbaar handelen) of the employee. That threshold is high. A difficult attitude or a clash of personalities rarely meets it.

If the employer acted seriously culpably, for example by causing the conflict or failing to address it, the court can award fair compensation on top of the transition payment (article 7:671b DCC). In the New Hairstyle judgment (Hoge Raad 30 June 2017, ECLI:NL:HR:2017:1187), the Supreme Court held that the amount depends on all circumstances of the case, including the income the employee is likely to lose.

When does the employment contract end?

Not on the day of the decision. The court sets the end date by applying the notice period, reduced by the duration of the proceedings, with a minimum of one month (article 7:671b DCC).

What if the disruption alone is not enough?

Since 1 January 2020, the court can combine circumstances from two or more incomplete grounds under the cumulation ground in article 7:669(3)(i) DCC. An example is a partly substantiated disruption together with performance shortcomings. If the court dissolves the contract on this ground, it may award additional compensation of up to half the transition payment.

Can an employee who reports sick during the conflict be dismissed?

Only in limited cases. During the first two years of illness, the employer may not give notice (article 7:670(1) DCC). The subdistrict court may dissolve the contract of a sick employee only if the petition is unrelated to the illness (article 7:671b DCC).

In conflict situations, employees often report sick because of the stress the conflict causes. The occupational physician (bedrijfsarts) then assesses whether the employee is medically unfit for work, or whether there is situational inability to work (situatieve arbeidsongeschiktheid): the employee is medically fit, but the conflict stands in the way of a return. In that case, the physician usually advises the parties to talk or to start mediation.

For the employer, the petition must show that the disruption existed independently of the illness. For the employee, a sick report does not automatically block dissolution, but it does require the court to examine the link between the conflict and the illness closely.

Is a settlement agreement a better route?

Often, yes. Most disrupted working relationships end with a settlement agreement (vaststellingsovereenkomst) rather than a court decision. It gives both parties more control over the outcome and avoids the uncertainty of proceedings.

A settlement agreement typically covers:

the end date, taking the notice period into account;
the severance payment;
release from work (garden leave);
the settlement of holiday entitlement and outstanding salary;
a reference and the agreed reason for termination;
a contribution to legal costs.

An employee who signs keeps the right to unemployment benefits (WW) if the initiative came from the employer, the employee is not to blame and the notice period is respected. The employee may dissolve the agreement without giving reasons within 14 days of signing (article 7:670b DCC). If the agreement does not mention this right, the period is three weeks.

The likely outcome of court proceedings largely determines what a reasonable settlement looks like. Both parties should therefore assess the strength of the file, the redeployment options and the financial consequences before making or accepting a proposal.

What should an employer do?

Record conflicts and conversations in writing, close to the date they took place.
Describe concrete incidents rather than general conclusions.
Offer a realistic route to restoring the relationship, including mediation, or record why that is not suitable.
Assess redeployment options before filing a petition.
Check that the file is consistent with earlier appraisals and correspondence.
Consider whether a settlement proposal is realistic before starting proceedings.

What should an employee do?

Respond in writing to reports or e-mails that are factually incorrect.
Keep your own record of relevant events and communications.
Cooperate with reasonable attempts to resolve the conflict.
Do not resign without advice, as this may cost you your unemployment benefits.
Have any settlement proposal reviewed before you sign it.

If the court dissolves the contract and you disagree, you can appeal to the court of appeal within three months of the decision (article 7:683 DCC).

Summary

A disrupted working relationship is a dismissal ground under article 7:669(3)(g) DCC and requires a decision of the subdistrict court.
The disruption must be serious and lasting, and redeployment must not be possible.
The employer must prove the disruption with a consistent file and show that it tried to restore the relationship.
The employee is in principle entitled to the transition payment; fair compensation may follow if the employer acted seriously culpably.
Most cases end with a settlement agreement, negotiated against the likely outcome in court.

Frequently asked questions

Can my employer dismiss me for a disrupted working relationship without going to court?

No. Without your agreement, your employer needs a decision of the subdistrict court; the only alternative is a settlement agreement that you sign.

Is mediation mandatory before dismissal on the g-ground?

No. The law does not require it, but courts expect the employer to have made a serious attempt to restore the relationship.

Can I be dismissed if the conflict was caused by my manager?

Yes, if the relationship is permanently disrupted and a transfer is not an option. If your employer is seriously to blame, the court can award you fair compensation on top of the transition payment.

How long does a dissolution procedure take?

In our experience, usually six to twelve weeks from filing the petition to the decision. The exact duration depends on the court and the scheduling of the hearing.