Employment contracts can be terminated in several ways. Through a termination agreement between employer and employee, through the dissolution of the employment contract by the court, and through termination of the employment contract by employer or employee.
We advise employers on which dismissal route to choose, how best to use it and provide practical implementation. We also assist employees in dismissal cases, obviously with the specific interests of the employee in mind.
Transition compensation and dismissal
An employee is entitled to a transition fee if his employment contract ends or is not renewed at the initiative of the employer. The transition compensation amounts to one-third of the monthly salary per year of service with a maximum as of January 1, 2022 of EUR 86,000 gross or one year’s salary if it exceeds EUR 86,000 gross.
For dismissal for business economic reasons and for long-term disability (longer than two years), the employer must obtain prior permission from the UWV to terminate the employment contract. For dismissal for other, personal, reasons, the employer must turn to the subdistrict court. If a collective bargaining agreement applies, it is also possible that it provides that a sector committee has jurisdiction. This sector committee can then review – instead of the UWV – a dismissal in case of business economic circumstances.
It is possible to lodge appeals and cassation against a decision of the subdistrict court in a dissolution procedure, and both an employer and employee can turn to the subdistrict court after UWV proceedings.