16 September 2016

Dismissal under Dutch employment law

Dismissal more difficult under new Dutch employment law

Since the legislative change in 2015, more specifically the change of termination law in July 2015, it has generally become more difficult for employers to terminate the employment agreement of employees in The Netherlands.
This conclusion is drawn by the Dutch Employment Lawyers Association (VAAN) based on recent case law and legal practice.

Despite the fact that the statutory severance payment (transition payment) has been decreased, the laws to come to termination have become stricter. For this reason, parties more often try to settle the case, which results in higher severances.
More than ever, it has become important that an employer has a very solid file for termination in order to be successful in court proceedings, since cantonal courts more often reject requests for termination in case there is insufficient reason for termination or in case a proper file is missing.
Under the new rules, the employer must have very clear and reasonable ground for termination to be supported by evidence. Under the new legal employment system it is very important to build up a proper file.

We assist employers, preferably in an early stage, with the management of a file in case employees do not perform adequately. We also litigate in case termination has become inevitable and a settlement cannot be reached.
Should you have any questions regarding termination of the employment agreement or the preparation/management of a file in case of underperformance, you can contact

Rachelle Mourits, employment attorney at Blenheim