Employment law in Eindhoven: your rights as employee and employer

Employment law in Eindhoven is Dutch employment law: the rules of Book 7 of the Dutch Civil Code (BW) apply here as everywhere in the Netherlands, and employment cases from the region go to the subdistrict court (kantonrechter) of the District Court of Oost-Brabant. What is local is the mix of cases: a high-tech labour market with many international employees, secondments and non-compete clauses.

Two documents cause most problems in practice: the settlement agreement (vaststellingsovereenkomst) and the non-compete clause. Both are often signed without review and bind the person who signs for a long time. Below we set out the main rights and obligations of employees and employers, and where the risks lie. For the full overview, see our page on Dutch employment law.

When does Dutch employment law apply?

As a rule, when you usually work in the Netherlands, wherever your employer is incorporated or the contract was signed. The parties can choose another law, but that choice cannot take away the protection of the mandatory Dutch rules that would otherwise apply.

The core rules are in Title 10 of Book 7 BW, supplemented by collective labour agreements (CAOs). The dismissal system dates from the Work and Security Act (Wet werk en zekerheid) of 1 July 2015 and was amended by the Balanced Labour Market Act (Wet arbeidsmarkt in balans) from 1 January 2020.

Can an employer dismiss you without a reason?

No. Under Article 7:669 BW the employer needs a reasonable ground, and reassignment to another suitable position must be impossible or unreasonable. In most cases the employer also needs permission from the Employee Insurance Agency (UWV) or a dissolution by the subdistrict court.

The reasonable grounds are listed in Article 7:669(3) BW. The most common are:

• economic reasons: jobs disappear due to business circumstances (a ground);
• long-term illness, once the two-year period of illness has passed (b ground);
• underperformance, but only after the employer has told you in good time and given you enough opportunity to improve (d ground);
• culpable conduct of the employee (e ground);
• a seriously and lastingly disrupted working relationship (g ground).

Which dismissal route applies?

Economic dismissal and dismissal after long-term illness go through the UWV, which tests the grounds and the selection of employees under the reflection principle (afspiegelingsbeginsel). Dismissal for personal reasons, such as underperformance, culpable conduct or a disrupted relationship, goes through a dissolution request to the subdistrict court.

A mutual termination by settlement agreement needs neither UWV nor the court. Using the wrong route can mean the dismissal does not hold.

When is summary dismissal allowed?

Summary dismissal (ontslag op staande voet) requires an urgent reason, communicated to the employee immediately (Article 7:677 BW). The bar is high: the reason must be concrete and proven, and the employer must act without delay after discovering it. An invalid summary dismissal can be annulled by the court, with back pay, or lead to a fair compensation.

What are your main rights as an employee?

Transition payment

If the employer terminates the contract or does not renew a fixed-term contract, you are entitled to a transition payment (transitievergoeding) from day one (Article 7:673 BW). It amounts to one third of a monthly salary per year of service, pro rata for partial years, with a cap in 2026 of €102,000 or one annual salary if that is higher. The right lapses if the dismissal results from your seriously culpable conduct.

Pay during illness

During illness the employer pays at least 70% of your salary for 104 weeks, and at least the statutory minimum wage in the first 52 weeks (Article 7:629 BW). Many CAOs and contracts top this up to 100% in the first year. Both sides must cooperate in reintegration under the Gatekeeper Improvement Act (Wet verbetering poortwachter).

Non-compete clause

A non-compete clause is only valid if agreed in writing with an adult employee (Article 7:653 BW). In a fixed-term contract it also needs a written statement of the employer’s weighty business interests. The court can set the clause aside in full or in part if it unfairly harms you compared with the employer’s interest.

Wages and holiday allowance

Unpaid wages, holiday allowance and accrued holiday hours are enforceable claims. If wages are paid late, you can claim a statutory increase of up to 50% (Article 7:625 BW) plus statutory interest.

What are your main obligations as an employer?

What must be in writing?

An employment contract does not have to be in writing, but a probationary period, a non-compete clause and a penalty clause only bind the employee if agreed in writing. Since 1 August 2022 the employer must also give the employee written or electronic information on the essential terms, such as the place of work, salary, notice periods and applicable CAO (Article 7:655 BW).

How often can you renew a fixed-term contract?

Under Article 7:668a BW the last contract becomes a permanent contract as soon as more than three fixed-term contracts have followed each other, or the chain has exceeded 36 months, with gaps of six months or less counted in. A CAO can deviate from this within limits.

What is the notice of (non-)renewal?

For a fixed-term contract of six months or longer, the employer must inform the employee in writing at least one month before the end date whether the contract will be continued and on what terms (Article 7:668 BW). If the employer fails to do so, it owes one month’s salary; if it informs too late, a pro rata amount.

Does a CAO apply to you?

Many sectors in the Eindhoven region, such as metal and technology, logistics and installation, have a CAO with minimum terms on pay scales, working hours and leave. A CAO declared generally binding by the minister applies even if the contract does not mention it. Not knowing that a CAO applies is no defence against a wage claim.

What does the sick-pay period demand from you?

During the two years of illness, the employer must follow the steps of the Gatekeeper Improvement Act: a problem analysis, a plan of action, regular evaluations and a reintegration report. If UWV finds the reintegration efforts insufficient, it extends the sick-pay period by up to 52 weeks (Article 25(9) of the Work and Income (Capacity for Work) Act, WIA).

What should you know before signing a settlement agreement?

By signing a settlement agreement you agree to end the employment and give up the right to challenge the dismissal. You may dissolve the agreement in writing without giving reasons within 14 days after it was concluded (Article 7:670b BW); if the agreement does not mention this right, the period is three weeks.

Use that period to have the terms checked: the end date, the notice period, the amount of the payment, the reference and any confidentiality clause. An agreement on the employer’s initiative is also important for your unemployment benefit (WW) from UWV.

What applies to international workers in Eindhoven?

The Brainport region, with ASML, NXP, DAF and their suppliers, employs many international workers. Three points come up regularly.

• Applicable law: if you usually work in the Netherlands, the mandatory Dutch rules generally protect you, even under a foreign contract.
• Posted workers: workers posted to the Netherlands by a foreign employer are entitled to the core Dutch terms of employment during the posting, under the Terms of Employment Posted Workers in the EU Act (WagwEU).
• Language of proceedings: proceedings before the subdistrict court are in Dutch, so documents in English often need translation or explanation.

What should you check as an employee?

• Does the employer rely on a ground of Article 7:669(3) BW, and which route (UWV or court) does that require?
• Has your transition payment been calculated correctly, with the 2026 cap of €102,000?
• Does your non-compete clause meet the written-form requirement and, in a fixed-term contract, contain a written statement of reasons?
• Have you used the 14-day period to have a settlement agreement reviewed?
• Have you received written information on your terms of employment under Article 7:655 BW?

What should you check as an employer?

• Is the dismissal ground documented, for example an improvement plan for underperformance?
• Are you using the correct route: UWV, subdistrict court or a settlement agreement?
• Are the probationary period, non-compete and penalty clauses agreed in writing?
• Have you tracked the chain of fixed-term contracts and sent the notice of renewal one month before the end date?
• Are all reintegration steps for sick employees on file to avoid a wage sanction?

What can we do for you with employment law in Eindhoven?

From our office at Marconilaan 13 in Eindhoven, our employment lawyers in Eindhoven advise employees and employers in Dutch and English.

• We review and negotiate your settlement agreement within the 14-day period.
• We calculate your transition payment and assess claims for fair compensation.
• We assess whether your non-compete clause is valid and how broad it is.
• We prepare a UWV dismissal application or a dissolution request to the subdistrict court.
• We draft and review employment contracts for international staff.
• We conduct proceedings before the subdistrict court in Eindhoven or ‘s-Hertogenbosch, including summary proceedings (kort geding).

Summary

• Employment law in Eindhoven is Dutch employment law; cases go to the District Court of Oost-Brabant.
• Dismissal requires a reasonable ground (Article 7:669 BW) and usually UWV permission or court dissolution.
• The transition payment is one third of a monthly salary per year of service, capped at €102,000 in 2026 or one annual salary if higher.
• You can dissolve a settlement agreement within 14 days without giving reasons.
• A non-compete clause must be in writing, and in a fixed-term contract needs written reasons.

Frequently asked questions