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Settlement agreement, transition allowance, dismissal

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Dismissal due to a disrupted employment relationship

Dismissal is possible only where the disruption is serious and lasting and restoration or redeployment can no longer reasonably provide a solution.

A conflict is not automatically a ground for dismissal

Tension, a disagreement or a clash with a manager does not automatically mean that the employment contract may be terminated. The relationship must be so seriously and lastingly disrupted that the employer cannot reasonably be expected to continue it.

Without mutual agreement, the subdistrict court assesses this ground for dismissal. The court also considers whether genuine efforts at restoration and redeployment have been made.

Key pointThe employer must demonstrate that the relationship is not only disrupted but that restoration is no longer reasonably possible.
Discussion about a disrupted employment relationship

Which four questions are decisive?

The assessment does not turn on one isolated event. The court considers the cause, duration and seriousness of the conflict and what both parties did afterwards.

Is the disruption serious and lasting?

Emails, meeting records and statements should show that normal cooperation is structurally no longer possible. Temporary irritation or a disagreement that can still be resolved is insufficient.

How did the conflict arise?

Was the disruption mainly caused or deliberately escalated by the employer? This may affect the court’s assessment and may support an award of fair compensation in addition to the statutory transition payment.

What has been done to restore the relationship?

Discussions, clear arrangements, guidance and, where appropriate, mediation may show that serious efforts were made to restore cooperation.

Is redeployment still possible?

The employer must generally investigate whether another suitable position, department or reporting line could provide a workable solution, with training where appropriate.

Mediation and consultation in a workplace conflict

Mediation, negotiation or court proceedings?

Mediation may be useful if restoration still appears possible. If a workable return is unrealistic, the parties may negotiate a settlement agreement. Without agreement, the employer may ask the subdistrict court to terminate the employment contract.

Always compare a proposed settlement with your position in court, the statutory transition payment, any possible fair compensation, the notice period and the consequences for Dutch unemployment benefits (WW).

Address an escalating workplace conflict in this order

  1. Establish the factsDistinguish between incidents, criticism of performance and the underlying workplace conflict.
  2. Request specific arrangementsRecord what is needed to restore cooperation and trust.
  3. Investigate restorationDiscuss guidance, mediation, different working arrangements or redeployment.
  4. Assess any settlementCheck the dismissal ground, compensation, termination date, WW position and all other terms before agreeing.

Record the facts without escalating the conflict

Keep relevant emails and meeting records, respond factually to inaccurate allegations and confirm arrangements in writing. Avoid accusatory messages that may later be used as evidence of further escalation.

Obtain timely advice on whether mediation, redeployment, defending a court application or negotiating a settlement best serves your objective.

More about dismissal and your rights

See the overview of dismissal situations and the related pages on underperformance and conflicts between colleagues.

About the author

Mr. Edwin van Jaarsveld

Edwin van Jaarsveld has over 20 years of experience with dismissal cases and regularly publishes about them.

Edwin’s expertise can also be found on:

Offered a settlement agreement following a conflict?

Have the dismissal ground, the employment file and every proposed term reviewed before signing.

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