Immediate dismissal: when is it valid and what are your rights?

Summary dismissal (ontslag op staande voet) ends an employment contract immediately. Under Article 7:677 of the Dutch Civil Code (BW) it is valid only if three requirements are met together: an urgent reason (dringende reden), a dismissal given without delay, and the reason communicated to the other party at the same time.

If one of these requirements is missing, the employee can ask the subdistrict court (kantonrechter) within two months to annul the dismissal or to award fair compensation. An employee can also resign with immediate effect for an urgent reason, but that usually costs the right to unemployment benefit (WW).

What is immediate dismissal?

Immediate dismissal ends the contract on the spot, without a notice period and without permission from the UWV or the subdistrict court. Both parties can use it: the employer can dismiss the employee, and the employee can resign, each under the same Article 7:677 BW.

What are the legal requirements for a valid immediate dismissal?

There must be an urgent reason, the dismissal must follow without delay, and the reason must be stated immediately. All three requirements apply to both the employer and the employee.

• Urgent reason. The circumstances must be so serious that the other party cannot reasonably be expected to continue the contract. Article 7:678 BW lists examples for the employer, such as theft, threats and deception; Article 7:679 BW lists examples for the employee, such as serious danger to life or health at work.
• Immediate action. The dismissal must follow promptly after the incident. A short delay for legal advice or an investigation is allowed, but waiting too long means the requirement is no longer met.
• Immediate notice of the reason. The urgent reason must be communicated to the other party at the same time as the dismissal, so that it is clear why the contract ends.

The court weighs all circumstances: the nature and seriousness of the conduct, the consequences for the other party, and the employee’s personal circumstances, including age and length of service. A single incident does not automatically justify immediate dismissal if a warning or another lighter measure would have been sufficient.

Is a transition payment due after immediate dismissal?

Usually not, if the employee is dismissed because of their own serious culpable conduct. The transition payment (transitievergoeding) under Article 7:673 BW is then not due, although the subdistrict court can still award it in exceptional cases where refusing it would be unacceptable.

The reverse also applies. An employee who resigns because of the employer’s serious culpable conduct is entitled to the transition payment. Since 1 January 2020, under the Balanced Labour Market Act (Wet arbeidsmarkt in balans, WAB), it accrues from the first day of employment.

What compensation is due when one party caused the urgent reason?

The party who caused the urgent reason through intent or fault owes the other party compensation under Article 7:677 BW. Under Article 7:680 BW this fixed compensation equals the wages for the period the contract would have lasted with proper notice.

The subdistrict court can reduce an excessive amount, but under Article 7:680 BW not below the wages for the statutory notice period and not below three months’ wages. This works in both directions: an employee at fault can owe the employer the same type of compensation.

What can you do if you disagree with the dismissal?

Protest in writing straight away and go to the subdistrict court within two months after the contract ended. After that deadline, you can no longer challenge the dismissal.

As an employee, you can ask the subdistrict court to annul the dismissal or to award fair compensation instead. In these proceedings the employer has to prove the urgent reason. If the court annuls the dismissal, the contract continues and the employer owes the wages for the period in between.

As an employer, you can ask the subdistrict court within the same two months to order an employee who resigned without an urgent reason to pay compensation. Either party can appeal to the court of appeal (gerechtshof) against the subdistrict court’s decision.

To avoid proceedings, the parties can convert the immediate dismissal into termination by mutual consent through a settlement agreement (vaststellingsovereenkomst). The UWV then still assesses whether the employee is at fault for being unemployed, so the wording of the agreement matters for WW.

What should you check as an employee?

Act within days: the two-month deadline in the Civil Code is strict.

• Did the employer state the reason for the dismissal immediately and clearly?
• How much time passed between the incident and the dismissal?
• Was there an earlier warning, or could a lighter measure have been enough?
• Have you protested in writing and offered to keep working?
• Have you noted the date the contract ended, so you can calculate the two-month deadline?

What should you check as an employer?

The burden of proof is on you, so prepare the file before you act.

• Is the conduct serious enough under Article 7:678 BW, also given the employee’s age and length of service?
• Have you investigated the facts and recorded witness statements and evidence?
• Can you dismiss without further delay, and do you confirm the reason in writing on the same day?
• Have you considered suspension (non-actiefstelling) during a short investigation?
• Have you weighed the risk of fair compensation and back pay if the court annuls the dismissal?

What can we do for you with immediate dismissal?

We act for both employers and employees; more about our approach is on our dismissal lawyer page.

• We assess the dismissal or resignation against the three requirements of Article 7:677 BW.
• We draft your written protest or your dismissal letter, stating the urgent reason.
• We calculate the deadline, the fixed compensation and any transition payment.
• We file the petition with the subdistrict court within the two-month deadline, or defend you in it.
• We negotiate a settlement agreement that keeps the WW position in view.

Summary

• Immediate dismissal under Article 7:677 BW requires an urgent reason, action without delay and immediate notice of the reason.
• An employee dismissed for their own serious culpable conduct usually receives no transition payment and no WW benefit.
• The party at fault owes fixed compensation equal to the wages over the proper notice period (Article 7:680 BW).
• You have two months after the contract ended to go to the subdistrict court.
• A settlement agreement can avoid proceedings and may preserve access to WW.

Frequently asked questions