Netherlands — Termination & Severance

Dutch employment law establishes a dual-route framework for terminating an employment contract when the employee does not consent. Both routes are governed by Book 7 of the Burgerlijk Wetboek (Dutch Civil Code), which replaced the Extraordinary Labour Relations Decree 1945 that historically required ministerial permission for dismissal.

An employer who wishes to dismiss an employee who does not agree must obtain either permission from the UWV (Uitvoeringsinstituut Werknemersverzekeringen, the Employee Insurance Agency) or dissolution by the kantonrechter (district court, cantonal division), depending on the grounds for dismissal.

UWV route — limited to two grounds

The UWV route is available only for dismissal based on:

1. Bedrijfseconomische redenen (economic/business reasons) — redundancy due to reorganisation, workforce reduction, business closure, financial deterioration, or business relocation; or
2. Langdurige arbeidsongeschiktheid (long-term occupational disability) — inability to work for more than two years due to illness or disability.

The employer submits a dismissal application (ontslagvergunning) to UWV. Article 7:669 of the Civil Code sets out the substantive grounds the UWV must verify. For economic dismissals, the UWV assesses whether the business justification is genuine and whether the employer applied the afspiegelingsbeginsel (reflection principle, Articles 7:669(5)–(7)) — selection based on a proportional reflection of the employer's workforce by age and tenure within each interchangeable job category. For disability dismissals, the UWV must confirm that the employee has been unable to work for at least 104 weeks, that the employer satisfied its reintegration obligations under the Wet verbetering poortwachter (Gatekeeper Improvement Act), that no loonsanctie (wage-payment penalty for inadequate reintegration effort) applies, and that the employee is not expected to recover sufficiently to return to work — including in modified duties — within 26 weeks.

The UWV forwards the application to the employee, who has 14 days to submit a written defence. After reviewing both parties' submissions, the UWV issues a decision. If permission is granted, the employer must formally notify the employee of dismissal in writing within four weeks; the notice period then begins. An employer who dismisses without obtaining required UWV permission renders the termination void. If the UWV denies permission, the employer may instead file for court dissolution.

Court dissolution route — all other grounds

For any ground not falling within the UWV's jurisdiction, the employer must apply to the kantonrechter for dissolution of the employment contract (ontbinding van de arbeidsovereenkomst). Article 7:669 lists the permissible grounds, which include:

• Disfunctioneren — poor performance or underperformance;
• Verwijtbaar handelen of nalatigheid — culpable conduct or negligence (serious misconduct);
• Verstoorde arbeidsrelatie — irretrievable breakdown of the working relationship;
• Frequent ziekteverzuim — excessive absenteeism unrelated to long-term disability;
• Conscientious objection or other substantial reasons (e.g., imprisonment); or
• Cumulatiegrond — a combination of reasons that individually would not suffice but together make continued employment unreasonable.

The employer files a petition with the district court. The court evaluates whether a reasonable ground exists and whether reintegration or continued employment is feasible. If the court grants dissolution, it specifies the effective termination date. The court may also award the employee a billijke vergoeding (fair compensation, Article 7:681) in addition to the statutory transition payment (transitievergoeding, Article 7:673) if the dismissal is found to be manifestly unreasonable.

Dismissal prohibitions (opzegverboden)

Certain categories of employees enjoy heightened protection. Article 7:670 of the Civil Code prohibits dismissal during:

• Illness or occupational disability (first two years, extendable if the employer failed reintegration obligations);
• Pregnancy, maternity leave, and six weeks post-maternity leave;
• Performance of specific protected roles (works council members, data protection officers, occupational health specialists).

An employer who terminates an employment contract in violation of an opzegverbod commits a void dismissal; the employee retains the right to continued employment and wages.

Mutual termination and summary dismissal

The dual-route requirement does not apply if the employee consents in writing to termination (beëindiging met wederzijds goedvinden / vaststellingsovereenkomst). Nor does it apply to ontslag op staande voet (summary dismissal for urgent cause), which permits immediate termination without notice when serious culpable conduct makes continued employment immediately untenable; however, the employer must act within days of discovering the misconduct, and the employee may challenge summary dismissal in court within two months.

Source: Burgerlijk Wetboek Boek 7, Titel 10, Afdeling 9 (Articles 669–686a) Source: Rijksoverheid.nl — Wat moet ik doen als ik word ontslagen?

Dutch law imposes a statutory severance payment — the transitievergoeding (transition payment) — when an employer terminates an employment contract or fails to renew a fixed-term contract after at least 24 months of service. Article 7:673 of the Civil Code sets out the qualifying conditions, the calculation formula, the annual cap, and the statutory exclusions.

Qualifying threshold and triggering events

The transition payment is owed when the employment contract has lasted at least 24 months and the contract ends on the employer's initiative. This includes:

• Dismissal by the employer (opzegging door de werkgever);
• Dissolution by the kantonrechter on the employer's application (ontbinding op verzoek van de werkgever);
• Non-renewal of a fixed-term contract after an einde van rechtswege (automatic expiry), when the employer chose not to offer a continuation contract and the contracts were separated by no more than six months.

The 24-month period may aggregate multiple successive contracts with the same employer if the gap between contracts is no more than six months; it may also aggregate service with different employers if those employers are each other's successors in respect of the work performed.

The transition payment is also owed — regardless of which party formally gave notice — if the employee resigned or sought dissolution as a result of serious culpable conduct or negligence by the employer (ernstig verwijtbaar handelen of nalaten van de werkgever), such as discrimination, sustained bullying, or a material breach of contract.

Conversely, the payment is not owed if termination is by mutual consent (vaststellingsovereenkomst / beëindiging met wederzijds goedvinden) or if the employee resigned on his or her own initiative without employer fault.

Calculation formula (as amended 2020)

Before 1 March 2020, the Civil Code used a tiered formula that accelerated the accrual rate for longer tenures and employees over fifty. The Wet arbeidsmarkt in balans (Balanced Labour Market Act, Stb. 2019/219) replaced that structure with a uniform rate: the transition payment equals one-third of the monthly gross salary for each full year of service, plus a pro-rata amount for any remaining months and days.

> Formula (Article 7:673(2) BW, as amended) > Transitievergoeding = (Gross monthly wage ÷ 3) × Years of service (with pro-rata for part years)

The monthly wage base includes basic salary, the statutory 8% holiday allowance (vakantiegeld), fixed bonuses (13th month, performance bonuses that recur), shift allowances, the average of variable overtime pay over the preceding twelve months, and the taxable value of a company lease car or housing allowance (as defined by the Besluit loonbegrip vergoeding aanzegtermijn en transitievergoeding, BWBR0035998). One-off or genuinely discretionary bonuses are excluded.

Service is counted from the first calendar day of employment; there is no minimum tenure before accrual begins, although the payment itself vests only when the contract ends after at least 24 months. Periods of illness, parental leave, or suspension on full pay count toward the tenure calculation.

Annual statutory cap

Article 7:673(2) imposes a dual cap. The transition payment may not exceed:

1. €102,000 gross (the figure in force on 1 January 2026), or
2. one gross annual salary, whichever is higher.

The Minister of Social Affairs and Employment adjusts the euro cap each 1 January in line with the prior year's forecast contract-wage growth (Macro-Economische Verkenningen); the adjustment is rounded to the nearest €1,000. The revised cap applies only to contracts that end on or after the effective date of the change. For 2025 the cap was €98,000; for 2024 it was €94,000; for 2023 it was €89,000.

High earners whose annual gross salary exceeds €102,000 therefore receive a maximum of one year's salary (not the euro cap); employees earning less face the lower absolute ceiling.

Statutory exclusions

Article 7:673(7) lists three situations in which no transition payment is owed, even if the contract has lasted 24 months or longer and the employer initiated termination:

• Minor employees — termination occurs before the employee reaches age eighteen and the employee worked on average no more than twelve hours per week;
• Retirement age — termination occurs in connection with or after the employee reaches the statutory or contractually agreed pension age (in the absence of a lower agreed age, the AOW-leeftijd under the General Old Age Pensions Act, currently rising toward 67);
• Serious culpable conduct by the employee — termination is the direct consequence of ernstig verwijtbaar handelen of nalaten by the employee (gross misconduct, serious negligence, or sustained breach of contract).

In the last case — employee misconduct — Article 7:673(8) grants the kantonrechter discretion to award the payment in whole or in part if withholding it would be unacceptable by the standards of reasonableness and equity.

Payment timing and enforcement

The employer must pay the transition payment within one month of the contract's termination date. From that deadline, statutory interest (wettelijke rente) accrues on any unpaid amount. The employee has three months from the end of the employment relationship to file a claim with the kantonrechter (Article 7:686a(4)); claims filed after that deadline are time-barred.

Employer compensation scheme (UWV reimbursement — scheduled for complete abolition in 2027)

A compensation regime under Article 7:673e BW currently allows the UWV to reimburse employers for transition payments paid after dismissal due to long-term illness or cessation of business on retirement or death. Originally, legislation was expected to restrict eligibility for this reimbursement to employers with fewer than 25 employees effective 1 July 2026. However, the Netherlands government announced in June 2026 that the compensation regime will now be fully abolished for all employers, effective 1 January 2027. No reimbursements will be available for dismissal dates on or after that date, regardless of employer size. Transitional rules will allow claims for qualifying events occurring before 1 January 2027 under the old regime.

Source: Burgerlijk Wetboek Boek 7, Artikel 673 (Transitievergoeding)

Dutch employment law imposes statutory minimum notice periods when either party terminates an employment contract. Article 7:672 of the Burgerlijk Wetboek (Dutch Civil Code) establishes an asymmetric framework: the employer's notice period increases with tenure, while the employee's default period is fixed at one month.

Employer notice periods — tenure-based

Article 7:672(2) of the Civil Code prescribes four tiers for the employer's statutory notice period, measured from the first day of employment:

• Less than 5 years' service: one month
• 5 years but less than 10 years: two months
• 10 years but less than 15 years: three months
• 15 years or more: four months

These periods are minimums; the employer may agree to a longer period in the employment contract or collective agreement (CAO), but may shorten them only through a CAO (never unilaterally in an individual contract), and even then not below one month.

Tenure aggregates successive contracts with the same employer if separated by no more than six months (Article 7:668a(4)). If an employee's contract was reinstated by court order after an unfair dismissal, the tenure calculation counts from the original start date, not from the reinstatement (Article 7:672(10)).

Employee notice period — one month default

Article 7:672(3) sets the employee's statutory notice period at one month, regardless of tenure. This asymmetry reflects the policy that the employer, who has greater economic power, should give the employee more time to find new employment, especially after long service.

The parties may agree in writing to extend the employee's notice period up to a maximum of six months, but only if the employer's notice period is simultaneously set at least double the employee's period (Article 7:672(6)). For example, if the employment contract extends the employee's notice to two months, the employer's notice must be at least four months. If this doubling rule is not observed, the employee may void the extended notice clause and revert to the one-month statutory default.

Zero-hours contracts (oproepcontract / 0-urencontract) — four-day notice

Employees working under a zero-hours contract (oproepcontract or 0-urencontract) — where the employer has no obligation to offer work and the employee has no obligation to accept it — are subject to a special abbreviated notice rule. Article 7:672(4) and (5) set the notice period at four days for both employer and employee.

A CAO may shorten this period further (some collective agreements reduce it to one day). Unlike the standard monthly notice, the four-day period takes effect immediately from the date notice is given; it does not wait until the first day of the following month. This reflects the precarious and variable nature of zero-hours employment.

When notice begins: end-of-month rule

Unless the employment contract or a custom (gebruik) specifies otherwise, notice takes effect against the end of the calendar month (Article 7:672(1)). The notice period then runs in whole calendar months from the first day of the following month.

Example: An employer gives notice on 15 March to an employee with seven years' service. The statutory notice period is two months. Notice is deemed given against 31 March; the notice period runs 1 April through 31 May, and the contract ends on 31 May.

If the employment contract specifies a different "notice day" (e.g., "against the 15th of the month"), that agreement controls.

Shortening through UWV or court procedure (krediet)

If the employer obtained UWV permission or a court dissolution order, Article 7:672(4a) allows the employer to credit the duration of the UWV or court procedure against the statutory notice period. The notice period is reduced by the number of days that elapsed between submission of the complete application and the date of the UWV or court decision, but a minimum notice of one month must remain. This prevents double-counting: the employee already had time during the application process.

Remedy for irregular notice (onregelmatige opzegging)

If either party gives notice with a period shorter than required (e.g., the employer gives two weeks' notice when two months are owed), the termination is not void, but the party who gave short notice owes the other a fixed compensation equal to the salary for the period by which the notice was deficient (Article 7:672(11)).

The kantonrechter may reduce this compensation if equity requires, but not below the salary for the statutory notice period under Article 7:672(2) or below three months' salary, whichever is less (Article 7:672(12)).

Contractual and CAO variations

• Longer employer notice: permitted by contract or CAO without restriction (benefits the employee).
• Shorter employer notice: permitted only through a CAO, and not below one month (Article 7:672(8)).
• Longer employee notice: permitted by written agreement up to six months, but only if the employer's notice is at least double (Article 7:672(6)).
• Shorter employee notice: permitted only through a CAO (Article 7:672(8)).

Any contractual clause that purports to shorten the statutory periods outside these rules is void, and the statutory minimums apply.

Notice does not apply to certain terminations

The statutory notice periods govern only unilateral termination by notice (opzegging). They do not apply to:

• Mutual termination by settlement agreement (vaststellingsovereenkomst / beëindiging met wederzijds goedvinden);
• Summary dismissal for urgent cause (ontslag op staande voet), which takes immediate effect if the employer acts within days of discovering serious misconduct;
• Automatic expiry of a fixed-term contract at its term (einde van rechtswege), though the employer must notify the employee in writing at least one month before expiry if the contract exceeds six months (Article 7:668(1)).

In these scenarios the parties may negotiate an effective termination date, but there is no statutory notice obligation as such.

Source: Burgerlijk Wetboek Boek 7, Artikel 672 (Opzegtermijn)

Article 7:670 of the Dutch Civil Code (Burgerlijk Wetboek Boek 7) sets out the statutory opzegverboden — prohibitions on an employer unilaterally terminating an employment contract in certain protected situations. These bars apply to both fixed-term and indefinite contracts and may only be waived or limited where the statute allows.

1. Illness or occupational disability (Article 7:670(1), (4)) An employer may not give notice to terminate the employment contract during the period an employee is unfit for work due to illness or occupational disability. This protection generally lasts for two years. If the employer has failed reintegration duties, the protection period may be extended beyond two years (Article 7:670(1)). Dismissal in breach of this prohibition is void.

Exceptions:

• After the two-year period of occupational disability, the employer may apply for termination via UWV based on long-term incapacity (Article 7:669(3)(b)).
• Dismissal for urgent cause (ontslag op staande voet), unrelated to illness, remains possible (Article 7:677 BW).

2. Pregnancy, maternity, and parental leave (Article 7:670(2)-(7)) Termination is prohibited from the notification of pregnancy through the entirety of maternity leave and for six weeks after return to work (Article 7:670(2)–(4)). Similar bars apply during parental, adoption, and foster care leave (Article 7:670(7)).

3. Protected activities and roles (Article 7:670(4)-(6)) This includes periods when the employee:

• Is a member of the works council or staff representation body;
• Serves on a committee as referred to in the Working Conditions Act;
• Is absent for the exercise of a statutory right, such as military or civil service.

4. Exceptions and court/UWV override (Article 7:670b) Some prohibitions do not apply, or may be lifted, if the termination is unrelated to the protected status (e.g., business closure affecting all employees, Article 7:670b). In these cases, the employer must seek prior approval from UWV or the court.

Legal effect A dismissal given in violation of Article 7:670 is void (nietig), and the employment contract continues as if notice were never given. These protections apply regardless of contract type unless the statute provides otherwise.

Source: Burgerlijk Wetboek Boek 7, Artikel 670 (Opzegverboden) Source: Rijksoverheid — Mag ik worden ontslagen als ik ziek of arbeidsongeschikt ben?

Citations and text reviewed and live links repaired as of 2026-06-15. No material legal changes affecting the underlying statutory prohibitions detected. Broken URLs in statute and Q&A sources have been replaced with currently functioning official URLs. The substantive rule and application points remain unchanged.

Article 7:681 of the Dutch Civil Code (Burgerlijk Wetboek Boek 7) enables a Dutch court (kantonrechter) to award "fair compensation" (billijke vergoeding) to an employee whose dismissal is manifestly unreasonable due to employer conduct. This compensation stands apart from, and may be awarded in addition to, the statutory transition payment (transitievergoeding) described in Article 7:673.

Statutory basis and grounds for award

Under Article 7:681(1) BW, an employee may request fair compensation if the employer has:

• Terminated the employment contract in a manner that is contrary to the requirements of good employer practice (goed werkgeverschap);
• Severed the relationship on grounds that do not meet the statutory criteria for dismissal; or
• Ended the contract through a summary dismissal (ontslag op staande voet) that the court later finds unjustified.

The statute does not provide a formula for calculating billijke vergoeding. The kantonrechter exercises discretion, taking into account all circumstances of the case. The guiding principle is whether the employer's behavior in the dismissal process was so improper or lacking in good faith that, in fairness, additional compensation is warranted. The employee must bring the claim within two months of the dismissal date, per Article 7:681(1).

Fair compensation is separate from the transition payment (Article 7:673), which is a statutory minimum. There are cases where the court may award both, one, or neither, depending on the circumstances and the party at fault. The billijke vergoeding is most commonly addressed where egregious employer misconduct or procedural errors have occurred, and the statutory transition payment alone is deemed insufficient.

Unable to confirm as of 2026-06-15 whether specific Supreme Court case law further restricts or elaborates on the calculation criteria beyond the statutory language itself.

Source: Burgerlijk Wetboek Boek 7, Artikel 681 (Billijke vergoeding)

Article 7:673(8) of the Dutch Civil Code (Burgerlijk Wetboek Boek 7) allows a district court (kantonrechter) to award additional compensation above the standard statutory transition payment (transitievergoeding) if an employment contract is terminated due to the employer’s “seriously culpable conduct or negligence” (ernstig verwijtbaar handelen of nalaten van de werkgever). This mechanism is designed as an exception to the general severance structure and acts as a corrective for cases of exceptional employer wrongdoing.

When courts may award additional compensation

• The statutory text authorizes additional payment where the employer's conduct in bringing about the dismissal is found to be seriously culpable by the court. While the statute does not provide examples, Dutch case law indicates this standard is met in cases of gross breaches of good employer practice (goed werkgeverschap), such as clear cases of unlawful discrimination, persistent bullying ignored by management, or egregious breaches of employee trust or safety obligations. The core test is whether the employer's actions so violate standards of fairness that the usual statutory payments are inadequate (BW 7:673(8)).

No statutory formula or euro cap

• Article 7:673(8) BW does not set a statutory formula or cap for this additional compensation. The court exercises broad discretion, guided by the principle of reasonableness and fairness (redelijkheid en billijkheid), with awards varying according to the facts and gravity of the employer’s conduct. Compensation typically supplements, rather than replaces, the ordinary transition payment, and can exceed it in amount, but extremely high awards remain rare.

Distinction from other remedies

• This additional compensation is distinct from reductions in transitievergoeding under Article 7:673(7)(c), where an employee’s own gross misconduct may limit or deny payment. Article 7:673(8) only enhances the employee’s rights where the employer is at serious fault in causing the termination.

Procedural note

• Claims for this additional compensation must be raised contemporaneously with challenging the dismissal. While Article 7:673(8) does not directly stipulate a deadline, Article 7:686a(4) BW sets a two-month filing limit for many dismissal-related claims, including those for severance, unless another period is specified.

Jurisprudential development

• Example scenarios are not listed in the statute but have been shaped by Dutch labor court jurisprudence. As of 2026, Supreme Court case law further interpreting the bounds of “seriously culpable” conduct remains the primary guide for practitioners.

Source: Burgerlijk Wetboek Boek 7, Artikel 673

The Wet melding collectief ontslag (WMCO, Collective Redundancy Notification Act) imposes strict notification and standstill requirements on Dutch employers planning large-scale redundancies for economic reasons. The WMCO implements the EU Collective Redundancies Directive (98/59/EC) and is codified at BWBR0003026.

Trigger: 20 or more dismissals at an establishment within 3 months WMCO procedures are triggered when an employer proposes to terminate the employment contracts of at least 20 employees at a single "establishment" (bedrijf; as defined by WMCO Art. 1) within a period of 3 months, based on economic or business grounds (WMCO Art. 3, 4). This includes both indefinite and fixed-term contracts subject to dismissal by notice or court order, but does not count (a) temporary agency employees placed by another employer, or (b) fixed-term contracts expiring at their scheduled end (WMCO Art. 1(4)). Only redundancies for economic reasons are counted; individual-based terminations (e.g. conduct or performance) are excluded.

Pre-dismissal obligations Before any notice of termination is given, the employer must:

• Notify the relevant trade unions (WMCO Art. 3:1a-1c) in writing, providing:
• Reasons for the redundancies,
• Number and job categories of workers affected,
• Total number of employees at the establishment,
• Criteria for selection,
• Timeline for implementing redundancies,
• Details of any redundancy payments or other support measures considered.
• Notify the UWV (Employee Insurance Agency) in writing with the same information (WMCO Art. 4).

Works council consultation Where a works council (ondernemingsraad) exists, separate consultation is required under the Dutch Works Councils Act (WOR). This is not a WMCO requirement per se but is usually concurrent.

30-day standstill period The employer cannot serve notice or apply for UWV permission for affected dismissals until 30 days have elapsed from the date of notification to both the unions and the UWV (WMCO Art. 6). This waiting period allows for consultation and possible negotiation of social plans or mitigation measures. Early dismissals in breach of this standstill are void under Dutch law (WMCO Art. 7).

Consequences of non-compliance Dismissals made in violation of the WMCO’s notification and standstill requirements are null and void. The UWV may intervene to enforce compliance.

These WMCO duties are in addition to (not a substitute for) Dutch statutory protections for individual dismissals, such as the transition payment, notice, and fair compensation rules.

Source: Wet melding collectief ontslag (WMCO)

Article 7:682 of the Dutch Civil Code (Burgerlijk Wetboek Boek 7) enables a Dutch court (kantonrechter) to order the reinstatement (herstel van dienstbetrekking) of an employee’s contract after an unlawful or void dismissal. This remedy applies when dismissal is declared void (vernietigbaar ontslag) under Article 7:681 BW—typically because the employer has breached statutory procedure, violated a dismissal prohibition (opzegverbod) such as illness or pregnancy protections under Article 7:670 BW, or used improper grounds for summary dismissal (ontslag op staande voet).

Procedural basis and grounds To obtain reinstatement, the employee must file a petition with the kantonrechter within two months of the dismissal as specified in Article 7:681(1) BW. The court assesses whether the dismissal meets one of the statutory grounds for annulment — such as lacking UWV or court approval where required, or breaching a statutory prohibition. Article 7:682 BW then empowers the court to:

• Order reinstatement, restoring the employment relationship as if uninterrupted (herstel van dienstbetrekking);
• Grant compensation in lieu of reinstatement (billijke vergoeding) if continuation is unreasonable;
• Combine remedies where equity so requires.

If the court orders reinstatement, Article 7:682(3) BW provides that the employment relationship continues as if no interruption occurred. The practical implication—confirmed by Dutch legal doctrine, though not stated verbatim in the statute—is that the employee must be treated as continuously employed during the period of void dismissal, with corresponding entitlement to salary and benefits. The employer is obliged to comply with the court’s order; the statute does not detail enforcement mechanics, but general Dutch civil enforcement applies.

Limits and practice Courts have discretion to deny reinstatement if returning the employee would be manifestly unreasonable, for example due to business closure or an irreparably broken employment relationship (Article 7:682(1) BW). While the statute is silent, in practice, courts more frequently award compensation in lieu in such cases—this reflects judicial practice, not an explicit statutory rule.

Statutory references and effective date These provisions are current as of the consolidation date on wetten.overheid.nl (2026-01-01). Both Article 7:682 and cross-referenced Article 7:681 remain unchanged since the last scheduled amendment.

Source: Burgerlijk Wetboek Boek 7, Artikel 682 (Herstel van dienstbetrekking), 2026-01-01 Source: Burgerlijk Wetboek Boek 7, Artikel 681 (Procedure bij vernietigbaar ontslag), 2026-01-01

Dutch employment law allows the parties to terminate a contract at any time by "mutual agreement" (beëindiging met wederzijds goedvinden), typically recorded in a signed settlement agreement (vaststellingsovereenkomst). This offers a route around the dual UWV/court route but imposes formal statutory safeguards, primarily set out in Article 7:670b of the Dutch Civil Code (Burgerlijk Wetboek Boek 7).

Written form and express consent Termination by mutual settlement must be documented in writing. Oral agreements are not valid for the purposes of contract termination (Article 7:670b(3) BW).

Employee cooling-off right (herroepingsrecht) The employee has a statutory right to unilaterally revoke their consent to the settlement agreement, for any reason, within 14 days of signing (Article 7:670b(2) BW). The employer is obliged to inform the employee — clearly and in writing within the agreement itself — of this right to withdraw. Failure to provide this information automatically extends the revocation period to three weeks.

To invoke this right, the employee must provide written notice of revocation to the employer within the cooling-off period. The contract is then considered never to have ended, and all terms remain in place. No reasons need to be given, and the right cannot be waived by contract.

Scope: Exclusions from settlement route Article 7:670b BW prohibits use of the settlement agreement route where an opzegverbod (dismissal prohibition) applies (e.g., during illness, pregnancy, protected leave), unless the prohibition does not relate to the reason for dismissal. Courts scrutinize such settlements, particularly where vulnerable workers are involved.

Employer duty: Accurate disclosure Employers must accurately inform the employee of their rights—including the cooling-off right and, where relevant, social security consequences (e.g. eligibility for unemployment benefits under the Werkloosheidswet may be jeopardized by employee-initiated resignation). Failing to do so can render the agreement challengeable.

Practical consequence: No transition payment unless agreed A settlement agreement does not trigger statutory transition payment (transitievergoeding) unless specifically provided. Typically, payments, references, or waivers are negotiated in the text.

The formal requirements in Article 7:670b (in writing, cooling-off right, information duty) are strictly policed by Dutch courts and the UWV. Settlements that do not comply may be void, exposing the employer to continued employment and liability.

Source: Burgerlijk Wetboek Boek 7, Artikel 670b (Beëindiging met wederzijds goedvinden)

Dutch employment law strictly regulates the use of a probationary period (proeftijd), limiting its maximum duration and imposing formal requirements for validity. Article 7:652 of the Burgerlijk Wetboek (Dutch Civil Code) establishes the permitted framework, which is binding and not waivable even by mutual agreement. Provisions reflect the law as consolidated on wetten.overheid.nl (2026-01-01).

Permissible duration

• For employment contracts of two years or more (including indefinite contracts), the probationary period may not exceed two months (Article 7:652(4)).
• For contracts lasting more than six months but less than two years, the maximum probationary period is one month (Article 7:652(5)).
• No probationary period is permitted for contracts of six months or less (Article 7:652(6)). Any longer term agreed is void and unenforceable, and the statutory maximum automatically applies even if a greater period is written into the contract.

Form and mutuality The probationary period must be agreed upon explicitly and in writing. Oral probationary clauses are invalid. The rule applies symmetrically: both employer and employee obtain the right to terminate the employment contract with immediate effect and without a notice period during the probation. No statutory reason needs to be given (Article 7:676(1)).

Exclusions and prohibitions Certain categories of workers are shielded from probationary clauses, including temporary agency contracts for six months or less, unless an applicable collective labour agreement (CAO) allows otherwise, and successive fixed-term contracts unless there is a substantial difference in duties (Article 7:652(7)-(8)).

Effect of invalid clauses

• If the probationary period exceeds the statutory maximum, the entire probationary clause is void—there is no valid probation period at all (not even up to the maximum).
• Likewise, any deviation from the written form requirement renders the clause unenforceable.

Termination during probation Either party may terminate the contract during a valid probationary period with immediate effect, and dismissal prohibitions (opzegverboden) generally do not apply, except in limited cases of discrimination (Article 7:647 BW) or during highly protected leaves such as pregnancy or illness (Article 7:670(8) BW).

Source: Burgerlijk Wetboek Boek 7, Artikel 652 (Proeftijd) Source: Rijksoverheid — Proeftijd in een tijdelijk contract

Under Dutch employment law, an employer seeking to terminate an employee must demonstrate that there are no reasonable possibilities to redeploy the employee to suitable alternative work, either within the employer's enterprise or, if the employer is part of a group, within the group as a whole. This "herplaatsingsplicht" (duty to redeploy) is codified in Article 7:669(1) of the Burgerlijk Wetboek (Civil Code) and operates as a precondition to lawful dismissal on all grounds except those involving seriously culpable conduct.

Scope and application Before an employer can lawfully terminate an employee due to economic reasons, long-term incapacity for work, or dysfunctional performance, the employer must actively assess — and where possible, offer — available suitable positions (passend ander werk) for which the employee is qualified or can reasonably be expected to become qualified through training within a reasonable period. Suitability is assessed based on the employee’s education, experience, skills, and health limitations; the law requires more than a nominal or perfunctory search.

If the employer belongs to a group of companies in the Netherlands, the redeployment obligation extends across the entire group (group companies in the Netherlands, not abroad). Documentation of the search and reasoning is required, and the UWV or district court will closely scrutinize the employer’s compliance with this duty during the dismissal application.

Exceptions and limits The obligation does not apply in cases of dismissal for seriously culpable conduct (ernstig verwijtbaar handelen) or when redeployment is objectively impossible (e.g., the business will fully close, and no vacancies exist). There is also no requirement to create new positions, only to seek or train for existing vacancies or soon-to-be-vacant roles. If the employee unreasonably refuses a suitable offer, the employer may proceed with dismissal without violating the herplaatsingsplicht.

Procedural interaction During UWV dismissal proceedings, the redeployment search must be current and supported by evidence (vacancy lists, search efforts, training offers). If the court or UWV finds the employer failed in this duty, the dismissal will be denied or voided.

This duty forms a cornerstone of Dutch dismissal protection, and non-compliance is a common pitfall for unwary international employers.

Source: Burgerlijk Wetboek Boek 7, Artikel 669(1) Source: Rijksoverheid — Ontslag: passend ander werk aanbieden (herplaatsingsplicht)

Immediate dismissal for urgent cause (ontslag op staande voet, or summary dismissal) is permitted under strict statutory conditions in Dutch employment law. Article 7:677 of the Burgerlijk Wetboek (Civil Code) sets the procedural framework, while Article 7:678 provides enumerated examples of what may constitute an “urgent cause.”

Definition and triggering events Summary dismissal is only allowed when an “urgent cause” (dringende reden) exists—facts or circumstances so serious that the employment relationship cannot reasonably be maintained. Article 7:678(2) BW specifies examples, including theft, embezzlement, serious insult, deliberate endangerment of life or health, persistent refusal to work, or disclosure of trade secrets, among others. The statute requires that the facts must be such that further employment is untenable.

Procedural requirements under Article 7:677 BW

• The dismissal must take place
• immediately after the employer learns of the urgent cause, and
• the employer must immediately inform the employee of both the dismissal and the precise urgent reason(s) for it, with those reasons communicated in writing.
• If these procedural requirements are not met, the dismissal is void under the statute.

Remedies and consequences If the employee disputes the existence of an urgent cause or the proper procedure, the statute provides for challenge in accordance with Dutch law. The employee may contest the summary dismissal’s validity in court; the consequence of a void dismissal can include restoration of employment and salary for the period of absence if determined by the court, subject to statutory limits and procedures. If the employer’s summary dismissal is found unwarranted, liability for damages or wages may arise. Conversely, where urgent cause is established, certain payments (such as transition payments) may be forfeited as provided elsewhere in the Civil Code.

The determination of "urgent cause" is fact-specific and must be judged in light of all circumstances, per Article 7:678. Dutch courts, per the statutory text, apply these criteria strictly, and the employer bears the burden to show both the facts and timely compliance with the procedural requirements under Article 7:677.

This summary is limited to what appears in the cited statute; more detailed rules on employee remedies and court proceedings are outside Article 7:677 and 7:678.

Source: Burgerlijk Wetboek Boek 7, Artikel 677 (Ontslag op staande voet) Source: Burgerlijk Wetboek Boek 7, Artikel 678 (Dringende reden) Source: Rijksoverheid – Ontslag op staande voet

Dutch law imposes a specific statutory obligation—the "aanzegplicht" (notification duty)—on employers with respect to fixed-term (temporary) employment contracts of more than six months’ duration. Article 7:668 of the Burgerlijk Wetboek (Dutch Civil Code) provides both the timing and mandatory compensation mechanism if the employer fails to comply.

Article 7:668 BW—Scope and triggering contracts

The notification duty applies to fixed-term employment contracts (arbeidsovereenkomst voor bepaalde tijd) that:

• Have a scheduled end date (i.e., do not end upon completion of a specific project or task), and
• Are set for more than six months (contracts of six months or less are excluded, as are contracts with no concrete end date).

Notification requirement and timing

The employer must notify the employee, in writing, at least one month before the scheduled end of the contract, of either:

• The employer’s decision to terminate the relationship at the scheduled end, or
• The employer's willingness to continue the contract, including the terms of renewal.

This one-month period is exact—notification given too early does not meet the requirement. If the employer offers renewal, the terms must be stated clearly in the notification.

Penalty for non-compliance: one-month gross salary compensation

If the employer fails to notify as required, Article 7:668(3) BW entitles the employee to compensation equal to one gross monthly salary, or the prorated amount if the notification was late (e.g., notification only two weeks before expiry results in half a month’s salary owed). This compensation is not a penalty but compensatory in nature, and accrues automatically without the need for loss or damages.

The employee must claim this compensation with the kantonrechter within two months of the contract's end date (Article 7:686a(4) BW). Claims brought after this deadline are time-barred.

No notification required for short or open-ended contracts

No aanzegplicht applies to contracts of six months or less, nor to contracts with an indefinite end date (such as project or replacement assignments specified to end on completion of work or another employee’s return).

The statutory notification rule is a frequent compliance trap for foreign employers, and is enforced strictly by Dutch courts.

Source: Burgerlijk Wetboek Boek 7, Artikel 668 (Aanzegplicht bij tijdelijk contract)

Dutch employment law grants specific groups of employees—including works council members, union officials, and whistleblowers—elevated protection against dismissal beyond the general statutory prohibitions of Article 7:670 of the Dutch Civil Code (BW).

Works Council Members — Article 21 WOR: Court Approval & Extended Protection Under the Dutch Works Councils Act (Wet op de ondernemingsraden, WOR) Article 21, employers may only terminate the employment contract of a current works council member, candidate, or committee member with prior approval from the kantonrechter (district court). This protection lasts for the term of membership and continues for two years following the end of their mandate or candidacy, as stipulated by Article 21(1) WOR. The court grants permission only if the employer demonstrates: (a) that the dismissal is unrelated to works council status, or (b) that there are such extraordinary circumstances that continuation of employment cannot reasonably be required (Article 21(2) WOR). Dismissals without court approval are void, and reinstatement is mandatory—employees are considered continuously employed (Article 21(3)-(4) WOR).

Union Officials — Article 7:670(4)-(6) & 7:646(4) BW, CAO Overlay Article 7:670(4)-(6) BW prohibits dismissal during an employee’s lawful absences to perform duties as a member of a union or staff representation body, or when serving on committees as referenced in the Arbowet (Working Conditions Act). Article 7:646(4) BW explicitly bans discrimination regarding employment conditions or termination based on union membership or activity. Additionally, many Collective Labour Agreements (CAOs) provide further procedural protections, such as mandatory union consultation, but these must be confirmed in the applicable CAO text. Dismissals motivated by union activity, or during protected absences, are statutorily void unless there is a neutral ground unrelated to union status, per these sections.

Whistleblowers — Wet Huis voor Klokkenluiders, Article 17 The Whistleblowers Authority Act (Wet Huis voor klokkenluiders) Article 17 prohibits detriment—including dismissal—against employees who, in good faith, report suspected wrongdoing. Where an employee alleges the dismissal was retaliatory, the employer must prove otherwise. On establishing a causal link, the court can annul the dismissal or order reinstatement and compensation for damages. Article 17 spells out both the procedure for application and the judicial remedies available, including a presumption of reprisal unless the employer proves a different reason.

Consequences of Non-Compliance For all three groups, dismissals that violate these statutes are void (nietig). Affected employees are entitled to reinstatement and back pay for the period of unlawful dismissal (see Article 21(3)-(4) WOR and Article 17 Wet Huis voor klokkenluiders). Employers must strictly observe these requirements, as Dutch courts enforce the protections rigorously—failure to adhere to statutory procedures typically results in restoration of employment and salary.

Source: Wet op de ondernemingsraden, Artikel 21 Source: Burgerlijk Wetboek Boek 7, Artikel 670 Source: Wet Huis voor klokkenluiders, Artikel 17

As of 2026, Dutch statutory law does not grant enhanced severance or dismissal protection to employees purely on the basis of age (such as being over 55 or 50 years old). The current transition payment formula in Article 7:673 of the Burgerlijk Wetboek (Dutch Civil Code)—as amended by the Wet arbeidsmarkt in balans (WAB, in force 1 January 2020)—provides for a uniform accrual of transition compensation for all employees, regardless of age or tenure. The transition payment (transitievergoeding) is calculated as one-third of the employee’s monthly gross salary per full year of service (plus a pro-rata amount for incomplete years), subject to the statutory cap. There is no special uplift or alternative formula for employees aged 50 or older.

Historical context and legacy misconceptions Older versions of Article 7:673 BW, in force until 1 January 2020, did provide a higher accrual rate for employees aged 50 or older with long service in businesses with 25 or more employees. That enhancement was fully abolished by the Balanced Labour Market Act (WAB). Current law is silent on these age-triggered enhancements.

Collective labour agreements (CAO) and social plans The statute does not mandate additional severance for older workers, but some collective agreements (CAO) or social plans may do so in specific industries or redundancy programs. These enhancements are a matter of contract or sectoral practice, not statutory right—Article 7:673 BW does not address CAO overlays. Statutory law is neutral on age-based benefits, and any age-related enhancement for severance must be found in the applicable CAO or social plan itself. Practitioners should review those texts directly, as the statute is silent.

VUT, pre-pension, and early-retirement overlays The current text of Article 7:673 BW contains no reference to pre-pension (prepensioen), VUT (early retirement), or other legacy systems for older workers in the context of termination and severance. If any such entitlement survives, it would arise under a continued CAO or private agreement, not from the statute as in force in 2026. The statute provides no automatic right to special treatment at or above age 55 or 50.

Summary—statutory rule

• No special transition payment or severance enhancement for employees 50, 55, or 60+ years old as of 2026.
• All employees: uniform statutory formula for transition payment, subject to current law.
• Any CAO/collective/severance plan must be checked separately for relevant overlays.

Source: Burgerlijk Wetboek Boek 7, Artikel 673 (Transitievergoeding), as amended 2026-01-01