Employer discussing a dismissal case and settlement agreement

Dismissal assistance for employers

Do you intend to terminate an employment contract in the Netherlands? First determine which dismissal route is legally available and document every agreement carefully.

Dismissing an employee: start with the correct route

An employer cannot terminate an employment contract without a valid legal ground. First assess the records, the proposed ground for dismissal, redeployment options and any statutory prohibition on dismissal.

You can then determine whether termination by mutual consent is achievable or whether an UWV or court procedure is required.

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Settlement agreementMake voluntary termination arrangements with the employee.UWVFor economic grounds or long-term incapacity for work.Subdistrict courtFor personal grounds for dismissal and other dissolution cases.

Which ground for dismissal applies?

The correct dismissal route depends on the reason for termination. Choosing the wrong route, relying on inadequate records or disregarding a prohibition on dismissal may result in rejection and additional costs.

Dismissal for economic reasons

Dismissal for underperformance

Disrupted employment relationship

Dismissal for conduct and behaviour

Summary dismissal

Dismissal during illness

From assessment to a legally sound solution

A careful approach reduces the risk of negotiations or a dismissal procedure becoming unnecessarily deadlocked.

1. Assess the situation

Collect the relevant employment contracts, correspondence, performance reviews, warnings and other records.

2. Test the ground for dismissal

Assess whether the facts support a statutory ground for dismissal and which additional steps are still required.

3. Choose the correct route

Compare termination by mutual consent with an UWV or subdistrict court procedure.

4. Make a careful proposal

Formulate a clear and reasonable proposal and allow the employee an opportunity to obtain legal advice.

5. Record all arrangements

Correctly record the termination date, compensation, garden leave, final payment, restrictive covenants and full and final discharge.

6. Complete the termination

Complete the final payment and all other arrangements on time, and retain the complete file.

What should the termination agreement contain?

A well-drafted settlement agreement helps prevent disputes afterwards. Its wording must reflect the actual situation and take account of the interests and legal position of both parties.

What is included in a settlement agreement?

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Key arrangements

Initiative and reason for termination
Termination date and notice period
Severance or statutory transition payment
Garden leave and final payment
Non-compete and non-solicitation clauses
Reference letter, communications and full and final discharge

When legal assistance is advisable

Have the ground for dismissal and the records assessed before choosing a final route. Legal assistance can also help with drafting the proposal, negotiations and any formal procedure.

Early assessment is particularly important in cases involving illness, a possible prohibition on dismissal, weak records, a disrupted relationship or an employee who already has legal representation.