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Your employer has offered you a settlement agreement, or you have been summarily dismissed. Or you are an employer who wants to part ways with an employee without a long dispute. As an employment lawyer in the Netherlands, we assess your position and calculate your entitlements. We also watch the periods that start running at once.

Dutch employment law is mainly found in Book 7 of the Dutch Civil Code, supplemented by collective labour agreements (CAOs). We assist both employers and employees, in English and Dutch. Since 1 January 2020 most civil servants also fall under ordinary Dutch employment law.

When do you need an employment lawyer in the Netherlands?

You need an employment lawyer as soon as a period is running or someone asks for your signature. The earlier you seek legal assistance, the more options you have.

Employees and employers typically contact us about:

  • a threatened dismissal, a dismissal letter or an invitation to a "bad news" meeting;
  • a settlement agreement or termination agreement you must assess within 14 days;
  • a summary dismissal, or the question whether you may take that step as an employer;
  • a conflict with your manager, or a dispute about wages, bonus or working hours;
  • illness, reintegration or a wage stop imposed by the employer;
  • a non-competition clause that blocks a new job;
  • a reorganisation, collective dismissal or a request for advice to the works council;
  • drafting employment contracts, staff handbooks or contracts for directors and expats.

Which employment contract do you have?

An employment contract exists when an employee works for an employer in return for wages (Article 7:610 of the Dutch Civil Code). Whether the contract is fixed term or permanent determines how and when it can end.

The employer must inform you in writing about the essential employment terms. Since August 2022 this must happen within one week of starting work for the core terms. The minimum holiday entitlement is four times the weekly working hours (Article 7:634): 20 days for a full-time job.

How does the chain rule for fixed-term contracts work?

Under Article 7:668a of the Dutch Civil Code, a permanent contract arises after more than three fixed-term contracts or 36 months. The chain is only broken by an interval of more than six months.

A CAO can deviate from these rules on certain points. For a fixed-term contract of six months or longer, the employer must give written notice about renewal. This must happen at least one month before the end date (Article 7:668). If the employer fails to do so, you are entitled to compensation of up to one month's salary. Changes to the chain rule have been proposed, so check the current rules before relying on an interval.

What are the rules on probation?

A probationary period must be agreed in writing (Article 7:652 of the Dutch Civil Code). No probation is allowed in a contract of six months or shorter.

For a contract of up to two years the maximum is one month. For a longer or permanent contract it is two months. During probation both parties can terminate with immediate effect. At your request the employer must state the reason in writing, and the prohibition of discrimination also applies.

How can an employer end an employment contract?

An employer cannot simply terminate a permanent contract. Dutch employment law requires a reasonable ground (Article 7:669 of the Dutch Civil Code) and a prior check on redeployment.

The statutory grounds are exhaustive. The dismissal procedure depends on the ground:

Reasonable groundRoute
Economic reasons, such as a reorganisationPermit from UWV
Long-term incapacity for work (two years or more)Permit from UWV
Frequent sickness absence with unacceptable consequencesSubdistrict court
Poor performance, after an improvement planSubdistrict court
Culpable acts or omissions of the employeeSubdistrict court
Disrupted working relationshipSubdistrict court
Combination of grounds (cumulation ground)Subdistrict court

If the employee agrees to the dismissal in writing, no permit from UWV or the subdistrict court is needed. The employee can revoke that consent within 14 days (Article 7:671). The employer's notice period is one to four months, depending on the length of employment (Article 7:672). As employment lawyer in the Netherlands, we see that a well-documented file often decides a dismissal case.

When is a summary dismissal valid?

A summary dismissal is only valid for an urgent cause (Articles 7:677 and 7:678 of the Dutch Civil Code). The employer must dismiss immediately and state the reason at once.

Examples of an urgent cause are theft, fraud or serious threats. The court weighs all circumstances, such as length of service and the consequences for the employee. An employee who wants to challenge the dismissal must ask the subdistrict court within two months to annul it (Article 7:686a). A valid summary dismissal usually also ends your right to unemployment benefits (WW).

What should you know about a settlement agreement?

A settlement agreement (vaststellingsovereenkomst) ends the employment by mutual consent. The employee may dissolve it within 14 days of signing without giving reasons (Article 7:670b of the Dutch Civil Code).

If the agreement does not mention this reflection period, it becomes three weeks. There is no statutory transition payment in a settlement agreement; everything is negotiable. Check the end date, the notice period, the compensation, any non-compete clause and a neutral reason for termination. With the right wording, the employee usually keeps the right to unemployment benefits from UWV. Employers often contribute to the employee's legal fees.

Which payment do you receive on dismissal?

On dismissal at the employer's initiative, the employee is entitled to a transition payment (Article 7:673 of the Dutch Civil Code). It amounts to one third of a monthly salary per year of service, from the first working day.

The transition payment is capped at an amount indexed every year, or at one annual salary if that is higher. For 2026 the cap is 102,000 euros gross. If the dismissal results from seriously culpable conduct of the employee, the payment lapses. On dissolution on the cumulation ground, the court can award an extra payment of up to half the transition payment.

In addition, the court can award fair compensation (billijke vergoeding) if the employer acted seriously culpably. There is no fixed formula: the court looks at all circumstances, including lost income and the chance of new work.

WhatPeriodArticle
Dissolving a settlement agreement14 days after signing (three weeks if not stated)7:670b
Annulment of a summary dismissal or noticeTwo months after the end of employment7:686a
Claim for the transition paymentThree months after the end of employment7:686a
Appeal against a subdistrict court decisionThree months after the decision7:683

What are the rules on illness and reintegration?

During illness the employer pays at least 70 percent of the wages for up to 104 weeks (Article 7:629 of the Dutch Civil Code). In the first year this is at least the statutory minimum wage, and many CAOs require 100 percent.

During the first two years of sickness a prohibition of dismissal applies (Article 7:670). Employer and employee must work together on reintegration under the Gatekeeper Improvement Act (Wet verbetering poortwachter). If the employee refuses to cooperate without good reason, the employer may stop the wages. If the employer did too little, UWV can extend the wage obligation by up to 52 weeks. After 104 weeks the employee may receive a WIA benefit, applied for by week 93 of sickness.

When is a non-competition clause valid?

A non-competition clause is only valid if agreed in writing with an adult employee (Article 7:653 of the Dutch Civil Code). In a fixed-term contract it is void unless the employer explains in writing which substantial business interests require it.

A non-solicitation clause, which prohibits contact with clients, is subject to the same rules. The subdistrict court can annul a clause fully or partly if it unfairly disadvantages the employee. As employment lawyer in the Netherlands, we assess whether your clause will hold and negotiate a limitation where possible.

What applies to reorganisations and the works council?

A company with 50 or more employees must have a works council (ondernemingsraad). Under Article 25 of the Works Councils Act, the works council has a right of advice on a reorganisation. Article 27 gives it a right of consent on certain regulations.

Consent covers schemes on, for example, working hours, appraisal and sickness absence. If the employer does not follow the works council's advice, the works council can appeal to the Enterprise Chamber within one month. For economic dismissals the employer must apply the reflection principle per age group within interchangeable positions.

The Collective Redundancy Notification Act applies if an employer intends to dismiss 20 or more employees in one work area within three months. The employer must notify UWV and the trade unions. UWV in principle handles the dismissal requests only one month after that notification.

What is different for directors and expats?

A statutory director of a Dutch BV usually has a dual position: director under the articles of association and employee. Under Article 2:244 of the Dutch Civil Code, the general meeting can dismiss the director at any time. No permit from UWV or the court is needed.

With the dismissal as director, the employment contract in principle also ends, unless a prohibition of dismissal applies. The director must first be given the opportunity to state his or her view. A flawed resolution can lead to fair compensation.

If you habitually work in the Netherlands, mandatory Dutch employment law protects you, even under a foreign contract. If your residence permit depends on your job, dismissal may also affect your stay. We then coordinate with our immigration practice.

How does working with Law & More work?

Working with an employment lawyer in the Netherlands at Law & More follows four phases: intake, advice, negotiation and, if needed, proceedings. In each phase we discuss in advance what we will do and what it will roughly cost.

  1. Intake. In a free introductory meeting we discuss your situation and any running periods. We ask for your employment contract, CAO, payslips and correspondence.
  2. Advice. Your Dutch employment lawyer assesses your position and explains the risks and chances, in English or Dutch.
  3. Negotiation. We conduct the talks with the other party or its lawyer. Many disputes end in a settlement agreement, and mediation can be a faster route.
  4. Proceedings. If no settlement is reached, we litigate before the subdistrict court and, on appeal, the court of appeal.

What does an employment lawyer in the Netherlands cost?

At Law & More the hourly rate is 250 to 350 euros excluding VAT for a lawyer. For a partner it is 300 to 400 euros excluding VAT, and we discuss the rate in advance.

The introductory meeting with your employment lawyer in the Netherlands is free of charge. A one-off advice meeting without further assistance costs 300 euros including VAT. Government-funded legal aid exists through the Legal Aid Board (Raad voor Rechtsbijstand), but Law & More does not work on that basis. Our office is at Marconilaan 13 in Eindhoven, with a visiting location in Amsterdam, and we act throughout the Netherlands.

Which articles help you further?

You can read the statutory text in Book 7 of the Dutch Civil Code.

Frequently asked questions

When should I contact an employment lawyer in the Netherlands?

Call an employment lawyer as soon as a period starts or a signature is requested. Think of a settlement agreement, a summary dismissal or a UWV dismissal application. Advice at that stage keeps your options open.

Can my employer dismiss me without my consent?

Not without a reasonable ground and a permit from UWV or a decision of the subdistrict court. Exceptions are dismissal during probation and summary dismissal for an urgent cause. Statutory directors can also be dismissed by the general meeting.

How long do I have to reconsider a settlement agreement?

You may dissolve a signed settlement agreement within 14 days without giving reasons. If the agreement does not mention this right, the period is three weeks. This follows from Article 7:670b of the Dutch Civil Code.

Do I keep unemployment benefits after a settlement agreement?

Usually yes, if the termination is initiated by the employer and there is no urgent cause. The agreement should state a neutral reason and respect the notice period. A lawyer checks the wording before you sign.

How much is the transition payment?

The transition payment is one third of a monthly salary per year of service. In 2026 it is capped at 102,000 euros gross, or one annual salary if higher. You must claim it within three months after the employment ends.

May my employer dismiss me while I am ill?

During the first two years of illness a prohibition of dismissal applies. The employer must continue to pay at least 70 percent of your wages and work on reintegration. A settlement agreement during illness requires extra care.

In doubt about your position? Tell us about your situation. We will let you know within one working day what your options are. Contact us, call +31 40 369 06 80 or e-mail info@lawandmore.nl.

This page provides general information and does not replace advice on your specific situation.

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