Employment
Dismissal needs prior permission — from the UWV or the subdistrict court
An employer generally cannot dismiss unilaterally without prior authorisation: economic and long-term-illness dismissals go through the public agency UWV, while dismissals for personal or performance grounds go to the subdistrict court (kantonrechter). Most dismissed employees are entitled to a statutory transition payment.
Key rules
- Dismissal requires prior UWV permission (economic or long-term illness) or termination by the kantonrechter (personal grounds), unless the employee consents.
- A statutory transition payment (transitievergoeding) is owed from the first day of employment on employer-initiated termination.
- A chain of fixed-term contracts converts to a permanent contract after three contracts or three years.
- The statutory minimum wage is set as an hourly rate and revised twice a year.
Governing law
- Civil Code, Book 7, Title 10 (employment contract)As amended by the Work and Security Act (WWZ)
- Work and Security Act (WWZ) (2015)Dual dismissal route and transition payment
- Balanced Labour Market Act (WAB) (2020)
Penalties and consequences
- Fair compensation on top of the transition payment where the employer acted culpably
- Reinstatement or higher compensation where dismissal was manifestly unreasonable
In practice
The route is dictated by the ground, and choosing the wrong forum is fatal to the request. A settlement agreement (vaststellingsovereenkomst) is the most common route in practice, with a statutory 14-day cooling-off period for the employee.