Dismissal
In the Netherlands it is not always easy to dismiss employees. The use of a mix of fixedterm and open ended contracts, and hiring of temporary agency staff is therefore a good way to manage a flexible workforce.
This will enable the employer to upsize and downsize the company effectively.
Dismissal of employees with open-ended contracts is generally not impossible, but will almost always involve time, effort and cost. In the absence of a mutual agreement or justification, the employer may not generally terminate a contract of employment without a permit, to be obtained from the Dutch Labour Office (uWV Werkbedrijf). This may take several months and it is not always certain that the required permit will be issued. Another option is to ask the court to dissolve the employment contract. In general these proceedings are less time consuming. However, the court will most often award compensation to the employee. This is dependent on various factors such as the circumstances of the case, the length of the contract of employment and the age of the employee. It is not possible here to address the issues of dismissal under Dutch Labour Law in detail. Due to the complexity of the system it would be wise to seek professional assistance prior to any action.
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Doing business in the Netherlands
A practical guide designed to give a general overview of the country and of the major applicable regulations for doing business in the Netherlands.
- Copyright 2012 - Mazars - Netherlands
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- Copyright 2012 - Mazars - Netherlands
