An employment lawyer in the Netherlands advises employers and employees on dismissal: whether a statutory ground exists, which route applies, what the file must contain, what a settlement agreement should say and which deadlines run. Dutch law requires two things at once: a valid ground under Article 7:669 of the Dutch Civil Code (BW) and prior permission from the UWV or a decision of the subdistrict court (kantonrechter); the main exception is that no permission is needed when the employee agrees to the termination or is summarily dismissed for an urgent cause.
Miss either requirement and the dismissal fails, whatever the merits. An employer with a strong case who goes to the wrong body loses; an employee with a weak case whose employer skipped a step can win. That is why advice is most useful early: for an employer when a problem is first identified, for an employee on the day a settlement agreement or a dismissal is put on the table.
Table of contents
Which grounds for dismissal does Dutch law accept?
Only the grounds in the closed list of Article 7:669(3) BW, lettered a to i. The employer must satisfy one ground completely and show that redeployment within the organisation, if necessary with training, is not possible within a reasonable period (Article 7:669(1) BW).
- a. Redundancy: the position disappears for economic, technological or organisational reasons; the statutory selection rules must be applied correctly.
- b. Long-term incapacity: the employee has been unable to work for more than two years and recovery is not expected within 26 weeks.
- c. Frequent absence with unacceptable consequences for the business; rarely successful.
- d. Unsuitability: the employee was told in good time, given a genuine opportunity to improve and supported in doing so.
- e. Culpable conduct that makes continuation unreasonable, such as theft or fraud.
- f. Conscientious objection to the work, where adapted work is not possible.
- g. Disturbed working relationship that is seriously and permanently damaged; see our article on a disrupted working relationship.
- h. Other circumstances, such as detention or the loss of a required permit.
- i. Combination of grounds: circumstances from two or more of the other grounds together (redundancy, long-term incapacity and conscientious objection cannot be combined); the court can then award an additional payment on top of the transition payment.
What must the file show?
The burden of proof rests on the employer, and the most common reason a dismissal fails is an incomplete file. For unsuitability, it must show what was expected, when the employee was told performance fell short, which improvement plan was agreed, for how long, with what support, and the result.
Notes confirmed in writing at the time carry weight; a memorandum written months later carries almost none. For culpable conduct, the file needs the facts, the investigation, whether the employee was heard and how comparable cases were sanctioned. For a disturbed working relationship, the court asks what was done to repair it, often starting with mediation. Employers can read our guide on how to handle employee dismissal legally.
Which route applies: UWV or the subdistrict court?
The ground decides the route. The UWV handles redundancy and long-term incapacity (Article 7:671a BW); the subdistrict court handles all other grounds on an application to dissolve the contract (Article 7:671b BW).
The UWV procedure is written: the employer applies, the employee responds, and the UWV grants or refuses permission to give notice. The notice period may then be shortened by the duration of the procedure, provided at least one month remains (Article 7:672(4) BW). If the UWV refuses, the employer can still ask the subdistrict court to dissolve the contract.
The court procedure has an oral hearing. The court dissolves the contract, sets the end date and decides on compensation, or rejects the application, in which case the employment continues. Appeal to the court of appeal is possible within three months, which can keep the position open for a long time.
Some terminations need neither route: dismissal during a valid probationary period, expiry of a fixed-term contract, termination at the state pension age, and notice given by an insolvency trustee.
When is dismissal prohibited?
Article 7:670 BW blocks notice in defined situations, even where a ground exists. The best known is illness: notice is prohibited during the first two years of incapacity for work. Notice is also prohibited during pregnancy and maternity leave and for a period after the employee’s return to work, and for members of the works council.
The law also prohibits termination because of a particular reason, such as the transfer of an undertaking, union membership or the employee invoking a statutory right. The court can still dissolve the contract if the request is unconnected to the prohibition, for example in a full closure of the business.
When is summary dismissal valid?
Summary dismissal (ontslag op staande voet) under Articles 7:677 and 7:678 BW needs no permission, but the conditions are strict. There must be an urgent cause, judged on all circumstances including the employee’s personal position; the dismissal must follow without delay; and the reason must be communicated immediately.
An employer that investigates for weeks loses the immediacy; a broad reason cannot be specified later. An employee should not resign in response, because that can cost unemployment benefit (WW). The two-month period to challenge the dismissal runs from the date of dismissal.
What should a settlement agreement contain?
Most dismissals end by agreement, in a settlement agreement (vaststellingsovereenkomst). The terms are negotiated in the shadow of what the UWV or the court would decide, so the strength of the underlying case determines a reasonable deal.
- End date: the agreement should observe the notice period that would have applied.
- Initiative: the employer initiated the termination and there is no urgent cause or culpable conduct by the employee.
- Payment: the transition payment as a minimum reference point, plus anything negotiated, with a payment date.
- Final settlement: outstanding salary, holiday allowance, untaken statutory holidays, bonus and pension.
- Restrictive covenants: release of the non-compete and non-solicitation clauses, often worth more than an extra month’s pay.
- Final discharge: check its scope where a bonus or another claim is still outstanding.
Under Article 7:670b BW, the employee can dissolve the agreement in writing without reasons within fourteen days; if the agreement does not mention that right, the period is three weeks. Employers usually contribute to the cost of the employee’s legal review. Our article on transition compensation on ending an employment contract sets out the entitlement that anchors the negotiation.
How do you protect unemployment benefit?
The UWV assesses entitlement to WW itself, on the documents. An employee who is culpably unemployed risks refusal, so the agreement must state that the employer took the initiative and that no culpable conduct is involved.
If the employment ends before the date on which proper notice would have ended it, WW only starts on that later date. Checking that calculation is a routine part of the review.
What is owed on termination?
The transition payment (transitievergoeding) under Article 7:673 BW is due whenever the employment ends at the employer’s initiative, including non-renewal of a fixed-term contract and dismissal during probation. It is one third of the gross monthly salary per year of service, calculated pro rata, with a cap of €102,000 in 2026 or one annual salary if that is higher.
No transition payment is due if the employee is seriously culpable, if the employee resigns without serious culpability of the employer, or if the employer is bankrupt; the UWV wage guarantee scheme does not cover it either. Employees under 18 who work twelve hours a week or less are also excluded.
Fair compensation (billijke vergoeding) is different. The court awards it only where the employer is seriously culpable, for example where the ground was fabricated or reintegration obligations were grossly neglected (Articles 7:671b and 7:681 BW). There is no formula; the amount depends on the circumstances and can far exceed the transition payment. Outstanding salary, holiday allowance and untaken statutory holidays are always paid on top.
Which deadlines apply after a dismissal?
Short, absolute deadlines under Article 7:686a(4) BW. A request to annul a dismissal or to award fair compensation must be filed within two months of the end of the employment; a claim for the transition payment within three months.
A claim for the compensation due because the employer failed to give notice of non-renewal of a fixed-term contract (aanzegvergoeding) must be brought within three months of the date the obligation arose. A late request is inadmissible, however strong the case, so an employee must decide quickly, with sight of the file.
Was it an employment contract at all?
Many disputes start with that question. A self-employed contractor whose assignment ends has no dismissal protection and no transition payment; if the relationship was in reality an employment contract under Article 7:610 BW, all of that applies. See our article on when a contractor becomes an employee.
The label does not decide. The court weighs all circumstances: how work and hours are determined, embedding in the organisation, personal performance, how pay is set, and whether the person bears commercial risk. The Belastingdienst ended its enforcement moratorium on false self-employment on 1 January 2025. A statutory presumption of employment below a set hourly rate has been proposed but is not in force.
What should you check as an employee?
Act within days, not weeks. Check:
- whether the ground named fits one of the grounds in Article 7:669(3) BW and whether the file supports it;
- whether a prohibition on dismissal applies, for example because you are ill or pregnant;
- whether a settlement agreement states that the employer took the initiative and observes your notice period;
- the amount of your transition payment and whether non-compete clauses are released;
- the date your employment ends, so you can diarise the two-month and three-month deadlines.
What should you check as an employer?
Prepare before the first formal conversation. Check:
- which single ground applies and whether the file proves it on that ground;
- whether redeployment, if necessary with training, has been examined and documented;
- whether the case belongs at the UWV or the subdistrict court;
- whether a prohibition on dismissal applies, such as illness in the first two years;
- the transition payment and the risk of fair compensation if the dismissal is irregular.
What can we do for you with a dismissal?
Our dismissal lawyers act for both employers and employees, in English and Dutch. The wider framework is set out in our guide to Dutch employment law and on our page for employment lawyers in the Netherlands. We can:
- review your settlement agreement and the termination letter;
- calculate your transition payment, notice period and the effect on WW;
- assess the ground, the file and the correct route before an application is made;
- negotiate the settlement package, including the release of restrictive covenants;
- conduct the procedure before the UWV or the subdistrict court and advise on appeal;
- fix all deadlines at the outset and file a request within the two-month period.
Summary
- A dismissal needs a ground under Article 7:669 BW and permission from the UWV or the subdistrict court, unless the employee agrees.
- Redundancy and long-term incapacity go to the UWV; all other grounds to the subdistrict court.
- Prohibitions, such as illness in the first two years, can block a dismissal.
- A settlement agreement must protect WW and can be dissolved within fourteen days.
- Challenge a dismissal within two months; claim the transition payment within three months.
Frequently asked questions
Can I be dismissed on the spot for poor performance?
No. Poor performance is not an urgent cause for summary dismissal. The employer must build a file showing that you were told in good time, given an improvement plan and supported, and then ask the subdistrict court to dissolve the contract on the ground of unsuitability (Article 7:669(3)(d) BW).
What is the difference between a transition payment and fair compensation?
The transition payment is the statutory severance payment under Article 7:673 BW, calculated by formula: one third of a monthly salary per year of service. Fair compensation is awarded by the court on top of that only where the employer is seriously culpable, and has no formula.
Do I need a lawyer for a settlement agreement?
It is not required, but one badly worded clause can cost you your unemployment benefit or the release of a non-compete clause. Employers usually contribute to the cost of your legal review, and you can dissolve the agreement within fourteen days of signing.


