What should you do if you are dismissed?
Dismissal is a drastic event that can significantly impact your life. Whether you have a permanent contract or a fixed-term contract, as an employee in the Netherlands you enjoy extensive statutory protection. It is important to take immediate action when you are informed that your employer wishes to terminate your employment contract. In this article, we explain what steps you can take and what rights you have.
First of all, it is essential to understand that your employer cannot simply dismiss you. There must be a valid reason for the dismissal, and the employer must follow the correct procedure. Dutch dismissal law provides employees with strong protection against arbitrary dismissal. This also applies to labour migrants working in the Netherlands.
The dismissal procedure in the Netherlands
There are various ways in which an employment contract can end. The most common are: dismissal via the UWV (business economic reasons or long-term illness), dissolution via the subdistrict court (personal reasons such as underperformance or a disrupted employment relationship), a settlement agreement (vaststellingsovereenkomst) (dismissal by mutual consent) and not extending a fixed-term contract.
In the event of dismissal via the UWV, your employer must apply for a dismissal permit (ontslagvergunning) and demonstrate that there is a reasonable ground for the dismissal. At the sub-district court (kantonrechter), it is reviewed whether all conditions for dismissal have been met. In both cases, as an employee, you have the opportunity to lodge a defence (verweer voeren).
Your right to a transition payment (transitievergoeding)
Since 2020, every employee who is dismissed has the right to a transition payment (transitievergoeding), from the first day of employment. The amount of the transition payment (transitievergoeding) is 1/3 monthly salary per year of service. This also applies in the case of not extending a fixed-term contract. The transition payment (transitievergoeding) is intended to facilitate the transition to other work.
Example: if you have been employed for 6 years with a gross monthly salary of €3,000, then you are entitled to a transition payment (transitievergoeding) of €6,000 gross. It is important to know that the transition payment (transitievergoeding) is also due if your employer takes the initiative to terminate the employment relationship.
The settlement agreement (vaststellingsovereenkomst)
In many cases, your employer will offer you a settlement agreement (vaststellingsovereenkomst). This is an agreement by which the employment relationship is terminated by mutual consent. The advantage of this is that it can be done quickly and without proceedings, but it is crucial to have the conditions thoroughly reviewed by an employment law attorney.
When entering into a settlement agreement (vaststellingsovereenkomst), ensure that the dismissal compensation is at least equal to the statutory transition payment (transitievergoeding), that your WW rights are preserved, that the notice period is correctly observed and that a 14-day cooling-off period is included. Never sign a settlement agreement (vaststellingsovereenkomst) directly without legal advice.
Entitlement to unemployment benefit (WW-uitkering)
After dismissal, you may be eligible for a WW benefit (Unemployment Act). However, you must meet certain conditions for this. You must have worked at least 26 weeks in the last 36 weeks (the weekly requirement). In addition, you must not have become culpably unemployed, which means that you have not resigned yourself and have not provided an urgent reason for dismissal.
The amount of the WW benefit is 75% of your last earned salary for the first two months and thereafter 70%. The duration depends on your employment history: minimum 3 months and maximum 24 months. As a labour migrant, you have the same rights to WW as Dutch employees, provided you meet the conditions.
Help from an Employment Law Attorney
At Arslan Advocaten, we specialize in employment law and assist employees in dismissal cases. Our lawyers speak multiple languages, including Dutch, Turkish, Polish and English. We can assist you in assessing your dismissal situation, negotiating a better severance payment, conducting a defence at the UWV or the kantonrechter, and applying for a WW benefit.
Contact us as soon as possible if you are confronted with dismissal. The sooner you seek legal advice, the better we can represent your interests. The initial consultation is without obligation and we can immediately inform you of your rights and options.