Dismissal or termination of employment can have a variety of causes and can be done in different ways.
The most common types of termination are:
- Termination by the employee
- De facto termination of employment (e.g. by not renewing a fixed-term contract or by reaching the legal retirement age)
- Termination by mutual consent (settlement agreement)
- Termination with the approval of the employee insurance agency (UWV)| (for business-economic reasons or long-term disability)
- Dissolution of the employment contract by the subdistrict court (including in cases of poor performance, culpable acts or omissions by the employee, or an irreconcilable working relationship)
- Summary dismissal
Upon termination of employment, there's generally a final settlement for things like leave and holiday pay.
When it's the employer who initiates termination, there will usually be a notice period and, in many cases, transitional compensation that will need to be paid out. This is not the case when the employee can be held ‘highly culpable’ for the termination of the employment, as in cases of summary dismissal or when otherwise agreed in a settlement agreement. In the event that the subdistrict court finds the employer to be highly culpable, the employer may owe fair compensation.
The specialists at L&A Advocaten have extensive experience in terminating employment contracts. They can advise you on things like the options and risks around terminating employment (whether it's a summary dismissal or not) and drafting and assessing settlement agreements. If necessary, they can also litigate.