Dismissal

Every employer will face it at some point: one or more employees who leave the organisation, either due to a conflict or, more commonly, for economic or organisational reasons. What essentials should all employers know about dismissing employees? We’re here to help you navigate the process!
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Dismissal

There’s a lot to consider when it comes to dismissal. While the decision may be mutual in some cases, it may also be met with some resistance. There are various reasons why an employer might wish to let an employee go, including:

  • Poor performance
  • A breakdown in the working relationship
  • Business or organisational reasons, for example as part of a reorganisation
    • If the employer intends to make 20 or more employees redundant within a three-month period, this qualifies as a collective redundancy
  • Long-term illness or incapacity for work
  • Misconduct or other culpable behaviour
Joanne Wesselo
Joanne Wesselo Senior jurist arbeidsrecht

Ways to terminate an employment contract 

There are several ways to terminate an employment contract, including:

  • Dissolution through the subdistrict court
  • Dismissal permit procedure via the Dutch Employee Insurance Agency (UWV)
  • Summary dismissal
  • Termination during the trial period

Settlement agreement

Finally, there’s the settlement agreement, which is often used in practice to end employment contracts. A settlement agreement is a contract used to terminate employment voluntarily, by mutual consent. It outlines the terms of the agreement, such as the end date and any severance payment.

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Key considerations

There are a number of important points to keep in mind when terminating an employment contract. Depending on how the employment relationship ends, these may play a greater or lesser role. Consider the following:

  • Determine the applicable notice period
  • Check whether the employee is entitled to severance payment
  • Review whether any specific clauses apply that must be taken into account, such as a non-compete, non-solicitation, or confidentiality clause
Are you allowed to terminate an employment contract before the first day at work?

The contract has been signed and everything is in order, when suddenly the employer or the employee gets second thoughts. Is it legally permitted to terminate the employment contract before the first day of work? Two court rulings have addressed this question.

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Training course: Reorganisation & Collective Redundancy

Suppose your company needs to be restructured, for example due to poor financial performance or reduced workload. Technological changes may also lead to letting staff go. In this training course, we focus on the dos and don’ts of a reorganisation and review the assessment criteria used by the Employee Insurance Agency (UWV).

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Questions? Ask away!

Is your organisation (SME or SME+) facing a challenge? Get in touch by filling in the form below.