Summary dismissal in the Netherlands: requirements and deadline

Summary dismissal (ontslag op staande voet) ends an employment contract with immediate effect, without notice and without permission from the UWV or the court. Article 7:677 of the Dutch Civil Code (BW) allows it only where three requirements are met at the same time: an urgent reason within the meaning of Article 7:678 BW, a dismissal given without delay, and the reason communicated to the employee without delay (onverwijlde mededeling), in practice at the same moment.

If one of the three fails, the dismissal fails, however serious the conduct was. The employee has two months from the end of the contract to bring the matter before the subdistrict court (kantonrechter).

What is summary dismissal?

It is the exception to the closed Dutch dismissal system. Normally an employer needs UWV permission, dissolution by the subdistrict court or a settlement agreement; summary dismissal bypasses all of that, which is why courts test it so strictly.

The contract ends on the day the dismissal is given, salary stops and no notice period applies. Because the employee is regarded as having caused the unemployment, the UWV will in principle refuse unemployment benefit (WW). The other routes are set out in our overview of how to handle employee dismissal legally and our guide to Dutch employment law; our article on facing immediate dismissal looks at it from the employee’s side.

The instrument works both ways. Under Article 7:679 BW, an employee may also leave with immediate effect for an urgent reason, for example where wages are not paid or the employee faces violence or serious harassment. The same three requirements apply; see our article on resignation and termination.

Which three requirements must all be met?

An urgent reason, a dismissal without delay and a reason stated without delay. They are cumulative: an employer with overwhelming evidence of theft can still lose on timing or wording.

Is there an urgent reason?

Article 7:678 BW defines an urgent reason as acts, characteristics or conduct of the employee that mean the employer cannot reasonably be expected to let the contract continue. Its examples include theft, fraud or other serious dishonesty, gross insult or serious threats, deliberate damage, serious breach of confidentiality, persistent refusal of reasonable instructions and gross neglect of duties.

Appearing on that list does not settle the matter. The court weighs all circumstances: the nature and seriousness of the conduct, length of service, how the employee has functioned, and personal circumstances such as age and the consequences of the dismissal. An isolated small theft by an employee with 20 years’ unblemished service can fail, while the same act by a recently hired cashier under an explicit house rule succeeds; the breach of trust and the clarity of the rule usually matter more than the value.

Was it given without delay?

The dismissal must be given without delay (onverwijld) once the employer has sufficient knowledge of the facts. Neither Article 7:677 BW nor case law sets a fixed number of days.

Courts accept the time reasonably needed to investigate, hear the employee, obtain internal approval and take legal advice, provided that time is actually used. Suspend the employee on full pay as soon as a serious suspicion arises, and keep a dated log of what was learned and done each day; the employer must prove it acted promptly. The clock starts when knowledge reaches the person or body authorised to dismiss, and a slow internal reporting line is the employer’s risk.

Was the reason stated straight away?

Article 7:677(1) BW requires the urgent reason to be communicated to the employee without delay; in practice, state it together with the dismissal. An oral dismissal is valid, but the reason given at that moment fixes the ground for the rest of the proceedings.

The employer cannot add or substitute a reason later, or rely on misconduct discovered afterwards. The communication must say what happened, when and how it was established; “serious misconduct” or “breach of trust” alone is not enough. Where several reasons are given, state whether each independently supports the dismissal (“each individually and in combination”).

Do the illness and pregnancy dismissal prohibitions apply?

No. The statutory prohibitions on giving notice during illness, pregnancy or works council membership (Article 7:670 BW) do not apply to a dismissal for an urgent reason. An employee on sick leave can therefore be summarily dismissed, if the three requirements are met and the reason has nothing to do with the illness.

The prohibition of discrimination still applies in full, so a dismissal that is in reality based on illness, disability, pregnancy, age, religion or origin is unlawful. A health condition that helps explain the conduct is also part of the assessment. Refusing to cooperate with reintegration is not in itself an urgent reason; the statutory route is first to stop paying wages after a warning (Article 7:629(3) BW). See also our article on employment contracts in the Netherlands.

What procedure survives scrutiny?

Investigate, hear the employee, dismiss and confirm in writing, and keep the file. The statute does not spell out these steps, but a court expects to find each of them.

The employer must prove the facts, not merely suspect them. Secure camera footage, access logs, till records, emails and signed witness statements while recollections are fresh. If an external investigator is engaged, the employer remains responsible for the pace.

There is no express statutory duty to hear the employee, but in practice it is decisive. Confront the employee with the findings, allow them to bring someone, record what was said and check their answers where possible. For a statutory director a different regime applies; see our article on the dismissal of a company director.

Give the dismissal in a meeting where possible and confirm it the same or the next day in a letter stating the facts, the date and time the contract ended, that the employee was heard, the personal circumstances weighed and how the grounds are relied on. Send it with proof of delivery. The letter cannot be corrected afterwards; our article on the most common mistakes in Dutch employment law compliance shows where files fail.

What is the two-month deadline, and what can the employee ask for?

A summary dismissal is not void by operation of law: it takes effect, and the employee must go to the subdistrict court within two months of the day the contract ended (Article 7:686a(4) BW). Letters or negotiations do not interrupt this period; once it expires, the dismissal stands.

The employee can ask the court to annul the termination (Article 7:681 BW), so that the contract continues and wages are owed from the dismissal date, plus the statutory increase (Article 7:625 BW) and statutory interest. Alternatively, the employee accepts the end of the contract and asks for fair compensation (billijke vergoeding), which most employees choose. A claim for the transition payment has its own limitation period of three months after the end of the contract.

The employee can also ask for interim relief, such as continued payment of wages while the main proceedings run. Our article on being fired on the spot sets out the first steps.

A settlement is often the way out. If the employer has doubts and the employee wants to keep unemployment benefit, the parties can withdraw the summary dismissal and end the contract by mutual consent on neutral grounds, with the notice period observed and no urgent reason relied on. Our guide to settlement agreements explains what it must contain.

What does a failed summary dismissal cost the employer?

Back pay or fair compensation, compensation for the notice period, often the transition payment, and legal costs. That combination makes it one of the more expensive mistakes an employer can make.

If the dismissal is annulled, wages are owed for the whole intervening period. If the employee asks for fair compensation instead, there is no statutory cap; the court can also award compensation equal to the wages for the notice period that was not observed (Article 7:677(4) BW). The transition payment is only excluded for seriously culpable conduct (Article 7:673(7) BW), a higher threshold than an urgent reason. See our articles on the transition payment and on severance payment in the Netherlands.

The exposure also runs the other way. If the employee caused the urgent reason through seriously culpable conduct, the employer can claim compensation equal to the wages for the notice period (Article 7:677(2) BW), within the same short limitation period.

When should you not use summary dismissal?

Outside serious dishonesty, violence or threats, a flat refusal to work or conduct that requires immediate removal, the risk usually outweighs the benefit.

Dissolution by the subdistrict court under Article 7:669(3) BW has a lower threshold, including culpable conduct (ground e) and a damaged working relationship (ground g), and the employer has time to build the file. A settlement agreement is faster and keeps the employee’s WW entitlement, at the price of a negotiated payment. Where the problem is capacity or organisation, the route runs through the UWV; see redundancy in the Netherlands. During probation a separate regime applies; see dismissal in the probationary period.

What should you check as an employer?

Check the file before you speak, because the dismissal cannot be repaired afterwards. Check:

• that you can prove the facts with documents, footage or signed statements, not only suspicion;
• that the conduct is serious enough given length of service and personal circumstances (Article 7:678 BW);
• that the employee was suspended and heard, and that a dated log shows you acted without delay;
• that the letter states the specific facts and whether each reason stands on its own;
• whether the employee is ill, pregnant or a works council member, and that the reason is unconnected;
• whether dissolution under Article 7:669(3) BW or a settlement is the safer route.

What should you check as an employee?

Act within two months, and check each requirement separately. Check:

• the date your contract ended, to calculate the two-month deadline of Article 7:686a(4) BW;
• whether the reason was given immediately and specifically, or only later or in vague terms;
• how many days passed between the employer learning the facts and the dismissal;
• whether you were heard and your personal circumstances were weighed;
• whether you have applied for WW at the UWV and kept its decision;
• whether you want annulment and back pay, or fair compensation and the transition payment.

What can we do for you with summary dismissal?

We advise employers and employees on summary dismissal in the Netherlands; see also our dismissal lawyer and employment lawyer pages.

• We assess, before the decision, whether the facts amount to an urgent reason under Article 7:678 BW.
• We draft the dismissal letter, or test the letter you received against the three requirements.
• We file the petition for annulment or fair compensation with the subdistrict court within the two-month deadline.
• We calculate back pay, the notice-period compensation and the transition payment.
• We negotiate a settlement on neutral grounds that protects the employee’s WW entitlement.

Summary

• Summary dismissal requires three conditions at the same time: an urgent reason (Article 7:678 BW), dismissal without delay and the reason communicated without delay (Article 7:677 BW).
• The employee has two months from the end of the contract to ask the subdistrict court for annulment or fair compensation.
• The dismissal prohibitions for illness, pregnancy or works council membership do not block a summary dismissal, but discrimination remains prohibited.
• Employers should investigate, hear the employee and confirm the dismissal the same or next day in a specific letter.
• Where the facts are not watertight, dissolution by the subdistrict court or a settlement agreement is usually the safer route.

Frequently asked questions