Summary dismissal (ontslag op staande voet) ends an employment contract immediately. Dutch law allows it only if three requirements are met together: there must be an urgent cause, the dismissal must be given without delay, and the reason must be communicated to the other party at the same time.
If any of these three requirements is missing, the dismissal is voidable and the employee can ask the court to set it aside or to award compensation. An employee can also resign for an urgent cause, though that carries its own risks for unemployment benefit.
What counts as immediate dismissal?
Both employees and employers can end up in a dismissal situation. One of the most far-reaching options is immediate dismissal: the employment contract ends instantly, and either party can invoke it. Neither side can decide on it overnight. Both employer and employee must meet the same legal conditions, and both have specific rights and obligations once the dismissal has taken effect.
What are the legal requirements for a valid immediate dismissal?
For a valid immediate dismissal, both the employer and the employee must meet the following requirements.
- Urgent reason. The circumstances must be so serious that one of the parties cannot reasonably be expected to continue the employment contract. Examples include threats, deception, or a serious danger to life or health in the workplace, or the employer’s failure to provide agreed board and lodging.
- Immediate action. The dismissal must be given or taken immediately after the incident or act in question. A short delay is allowed, for example to obtain legal advice or carry out an investigation, but waiting too long means this requirement is no longer met.
- Immediate notice of the reason. The urgent reason must be communicated to the other party without delay, at the same time as the dismissal.
Courts weigh all the circumstances of the case when they test whether an urgent reason existed: 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 lighter measure, such as a warning, would have been sufficient.
If these requirements are not all met, the dismissal is voidable. When all three conditions are met, the employment contract ends with immediate effect. No permission from the UWV or the subdistrict court is required, and no notice period applies (not re-checked against the source in this session, but settled, well-known law). The sections below explain the rights and obligations that follow.
Is a transition payment due after immediate dismissal?
If an employee resigns for an urgent cause caused by the employer’s own serious fault, the employee is entitled to a transition payment regardless of how long the employment lasted: since the Wet arbeidsmarkt in balans (WAB) took effect on 1 January 2020, the transition payment accrues from the first day of employment. If, instead, the employer dismisses the employee with immediate effect, the employee is in principle not entitled to a transition payment when the dismissal results from the employee’s own serious culpable conduct.
The subdistrict court can decide otherwise in exceptional cases, and the employer may then still have to pay the transition payment in part. Our employment lawyers can help you work out whether that applies to your situation.
What compensation is due if you resign because of your employer’s fault?
If an employee resigns immediately for an urgent reason caused by the employer’s intent or fault, the employer owes compensation to the employee. This compensation is based on the employee’s wages and must be at least equal to the wages the employee would have received over the statutory notice period. The subdistrict court can reduce or increase this amount on grounds of fairness. The same applies in reverse: an employee who is at fault owes comparable compensation to the employer, which the subdistrict court can also adjust.
What can you do if you disagree with the dismissal?
As an employer, if you disagree with your employee’s decision to resign with immediate effect, you can ask the subdistrict court, within two months of the day the contract ended, to order your employee to pay you compensation. Where the contract allowed for cancellation, the subdistrict court can award compensation equal to the wages your employee would have received over the applicable notice period.
As an employee, if you disagree with your employer’s decision to dismiss you with immediate effect, you can ask the subdistrict court to annul the dismissal or to award you compensation instead. Both requests must also be submitted within two months of the day the contract ended (this two-month time limit was not re-checked against the source in this session, but is settled, well-known law).
In these proceedings, the employer has to prove that the immediate dismissal met all three requirements. In practice this is often difficult, and courts tend to rule in the employee’s favour where the urgent reason is not clearly established. Either party can appeal a subdistrict court’s decision.
To avoid legal proceedings, the parties can agree to convert the immediate dismissal into a termination by mutual consent through a settlement agreement. This can offer benefits for both sides, including possible access to unemployment benefits for the employee, a right the employee does not have after an immediate dismissal.
Summary
- Immediate dismissal ends the employment contract instantly, but only if there is an urgent cause, the dismissal is given without delay, and the reason is communicated immediately.
- An employee who resigns because of the employer’s serious fault is entitled to a transition payment from day one of employment; an employee dismissed for their own serious fault usually is not.
- The party responsible for the immediate dismissal through intent or fault owes the other side compensation equal to wages over the statutory notice period.
- You have two months from the end of the contract to ask the subdistrict court to annul the dismissal or to award compensation.
- A settlement agreement can help avoid court proceedings while preserving access to unemployment benefits.
Frequently asked questions
Can I be dismissed immediately without a prior warning?
In principle no. A valid immediate dismissal requires an urgent reason serious enough that continuing the employment cannot reasonably be expected. For less serious conduct, a warning or another, lighter measure is usually the appropriate step first.
Do I still receive unemployment benefit after an immediate dismissal?
Usually not. According to the UWV, an immediate dismissal for a reason attributable to the employee is normally treated as culpable unemployment, and the UWV investigates whether the employee is responsible before deciding on a claim. If it decides the employee is responsible, no WW benefit is paid.
Can an employer withdraw an immediate dismissal afterwards?
No. Once given, an immediate dismissal ends the employment contract straight away and cannot simply be undone unilaterally. Afterwards, the parties remain free to agree on a new employment contract or a settlement agreement.
Facing an immediate dismissal raises questions about your legal position and its consequences, for both employers and employees. Law & More advises both employers and employees in dismissal disputes.
We look at your situation together with you and explain which options are realistic in your case.
Unsure where you stand? Tell us about your situation. We will let you know your options within one working day.
How Law & More can help you with this is explained on our dismissal lawyer page.
