Discharge – Employer

Fixed-term contracts end automatically by operation of law. Even so, there are several legal obligations.

To terminate a contract of indeterminate length, reasonable grounds for dismissal are required. The law determines what that entails. Moreover, you as an employer should explore possible relocation of the employee, possible through training. This is not required if you wish to dismiss an employee that has acted culpably.
Unless the case involves immediate dismissal or dismissal during a probationary period, or dismissal of a managing director, a termination process must be conducted through UWV (the unemployment agency) or through the cantonal judge. The procedure will be conducted through UWV when the dismissal is related to prudential matters or in case of long-term illness. In all other situations the cantonal judge is licensed to terminate the contract as requested by the employer.

It is important to know that an employee is legally entitled to dismissal compensation when they have been employed for a period longer than 2 years. This is called transition compensation. Even if the employee decided to terminate the contract themselves because you as an employer have acted culpably, the employee can claim this compensation.

It is not always necessary to go through a dismissal procedure. The parties involved can come to mutual agreements about the termination of the employment contract. A termination contract (in the form of a settlement) is then drawn up.

If you wish to dismiss an employee that has acted culpably, for instance in case of theft, immediate dismissal is possible. In that case, you can proceed to termination immediately and intervention by UWV or the cantonal judge is not required. The employee is not rewarded any compensation in such a case. An immediate dismissal has to meet various formal requirements. That’s why you should always contact an employment law specialist as soon as possible.

Fender Advocaten has the right specialist knowledge to guide you in these matters.

Follow Fender Advocaten on LinkedIn or feel free to contact No Mauer or Lars Claassens for an introduction.