Employment Law

Employment Law

Expert guidance on Dutch labor regulations

Overview

Employment law in the Netherlands provides strong protection for employees while offering employers a clear framework for managing their workforce. Whether you are an international company hiring your first Dutch employees, an employer navigating complex dismissal procedures, or an employee facing workplace issues, understanding Dutch labor law is crucial.

At Law & More, we represent both employers and employees in all aspects of Dutch employment law. Our employment lawyers combine deep legal expertise with practical business understanding, helping companies build compliant HR practices and assisting individuals in protecting their workplace rights.

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What We Do

Employment contracts and HR policies

Dismissal procedures and redundancy

Summary dismissal for cause

Collective labor agreements (CAO)

Non-compete and confidentiality clauses

Directors' liability and D&O insurance

Sick leave and re-integration management

Works council matters

International employment and secondment

Employment disputes and litigation

Settlement agreements (VSO) and severance payments

Employment dispute mediation

Expat contracts and work permits

Why Choose Law & More

Represent both employers and employees

Deep expertise in Dutch employment regulations

Practical, business-focused solutions

Experience with international employment structures

Multilingual service in English, Dutch, German, and more

Frequently Asked Questions

Common questions about employment law answered by our experts

Generally no. Dutch law provides strong protection - employers cannot dismiss solely due to illness during the first two years. After two years, dismissal may be possible with UWV permission if the employee cannot return to suitable work. Dismissal during sickness for reasons unrelated to illness (such as business economic reasons or serious misconduct) may be permitted.

Maximum two months for permanent contracts or fixed-term contracts over two years. One month for fixed-term contracts under two years. No probation allowed for contracts under six months. Must be agreed in writing before employment starts. During probation, both parties can terminate immediately without notice or severance.

Severance equals 1/3 monthly salary per year of service. Tax-free up to €90,050 (2026). Exceptions include summary dismissal for employee fault, termination during probation, and employee resignation.

Statutory minimum is one month (under 5 years service), two months (5-10 years), three months (10-15 years), and four months (15+ years). For employees always one month unless longer agreed (max six months). Notice must be mutual - employer's period cannot be shorter than employee's.

A fixed-term contract ends in principle automatically on the agreed end date, whereas a permanent contract continues until it is lawfully terminated. Under the chain rule, a series of fixed-term contracts can, after a certain time or number, convert into a permanent contract. The type of contract strongly determines the dismissal protection and the obligations of employer and employee.

During a probation period, employer and employee can terminate the employment contract with immediate effect without the usual dismissal rules. The maximum duration is set by law and depends on the contract length; for short contracts a probation period is not permitted. It must be agreed in writing and be equal for both parties, otherwise the clause is void.

Summary dismissal is only possible for an urgent cause, such as theft or refusal to work, and must be given without delay together with a statement of the reason. It is a far-reaching measure that the courts assess strictly. A wrongful summary dismissal can lead to reinstatement of the contract or substantial compensation. Both parties are well advised to seek timely advice.

The law has a closed system of grounds for dismissal, such as business-economic reasons, long-term incapacity for work, underperformance, culpable conduct, and a disrupted working relationship. The UWV is competent for business-economic dismissal and long-term illness; the subdistrict court for the other grounds. A combined (cumulation) ground also exists. The chosen ground must be properly substantiated.

In the event of illness, the employer must in principle continue to pay wages for up to two years, often at least 70% and at least the minimum wage in the first year. In return, both employer and employee have reintegration obligations. Insufficient reintegration efforts can lead to a wage sanction extending the payment period. A solid file is essential.

The transition payment is in principle due on termination of the employment contract at the employer's initiative and amounts to one-third of a month's salary per year of service, calculated pro rata. The right arises from the first working day. In certain situations, such as seriously culpable conduct by the employee, the right may lapse. We calculate the payment and advise on your position.

In addition to the transition payment, the court can award a fair compensation (billijke vergoeding) where the employer has acted in a seriously culpable manner, for example in the case of a wrongful summary dismissal or a deliberately disrupted relationship. The amount is not capped and is determined on the basis of the circumstances of the case. It has a strongly corrective character.

In a business-economic dismissal, the employer must substantiate the necessity, apply the correct order of dismissal (the reflection principle), and investigate redeployment. Permission from the UWV is usually required. Employees are entitled to the transition payment and sometimes to arrangements under a social plan. We check whether the procedure is correct and represent your interests.

A non-competition clause must be agreed in writing and, in fixed-term contracts, is only valid with a written statement of substantial business interests. The court can moderate or annul an overly broad clause if it unfairly disadvantages the employee. A non-solicitation clause is a specific variant aimed at clients and relations. We assess the validity and scope.

In an employment dispute it is wise to document communications and agreements carefully and, where possible, to reach a solution through dialogue or mediation. If that fails, a settlement agreement or proceedings before the subdistrict court may provide a way out. Always have a proposed settlement agreement reviewed, in particular with a view to your unemployment-benefit rights. We assist you at every stage.

When (part of) a business is sold or taken over, employees automatically transfer to the new employer keeping their existing terms of employment. Dismissal solely because of the transfer is not permitted. This protection also applies to certain outsourcing arrangements and mergers.

An employer can only change terms of employment unilaterally if there is a compelling interest, and stricter requirements apply where there is a written unilateral amendment clause. Without such grounds your consent is needed. It is wise not to agree straight away and to have the consequences assessed first.

During the first two years of illness a prohibition on giving notice generally applies, so the employer cannot terminate the contract. There are exceptions, for example on the closure of the business or summary dismissal. The prohibition protects the sick employee but does not release them from reintegration obligations.

The law requires the employer and employee to behave towards each other as a “good employer” and “good employee”. This open standard is given content by the courts and plays a role in disputes over, for example, a change of role, reintegration or taking leave.

With an on-call contract the employer must call the worker at least four days in advance, otherwise the worker need not come. After twelve months the employer must offer a fixed number of hours based on the average. These rules limit the uncertainty for on-call workers.

Have Questions About Employment Law?

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