Dutch Employment Law Series - # 1
Kasim Legal The Netherlands www.kasimlegal.nl
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TTeerrmmiinnaattiioonnoof f eemmpplloo y y mmeenntt
Author: Zelena Kasim LL.M
This whitepaper gives a generaloverview on the termination of anemployment contract in theNetherlands. It can be used as a guideto give you a first impression of whatcan be expected when a question onterminating a Dutch employmentcontract arises.
2. Dutch employment contracts
In The Netherlands there are two typesof employment contracts:1.
Temporary employmentcontract; and2.
Temporary employment contracts
Temporary employment contracts willterminate automatically by law on theagreed ending date. A dismissalprocedure is not required. Prior noticehas to be given if this is a requirementof the employment contract.
A different situation occurs if one (or bothparties) wants to end the employmentcontract before the agreed ending date. Inthis case, the option for termination of thecontract before the ending date has to bepart of the employment contract. If theemployer wants to end the contract beforethe date agreed, the employer must follow a legal dismissal procedure.If more than three temporary contracts with the same employer have been agreed within less than a three-month break between each contract, the latestemployment contract will becomepermanent. This means that the rules for apermanent employment contract will startto apply.
Permanent employment contract
A permanent employment contract isone concluded for an indefinite periodof time.
A permanent employmentcontract has no ending date.
A permanent employment contract isterminated by notice. Such a noticerequires authorization from theEmployment Office (UWV- WERKbedrijf). This is a governmental body.
3. Termination of employmentcontract
An employment contract can beterminated in four ways:1.
By mutual consent;2.
By operation of law;3.
By judicial rescission;
4. Termination by mutualconsent
An employment contract may beterminated by mutual consent. Thetermination must be confirmed in a written document signed by bothparties. Termination by mutualconsent is possible at any time. It isimportant for the employer to check if the employee has understood theconsequences of termination and isreally willing to terminate theemployment contract. Should this not be the case, a judge may conclude thatthe employee has been dismissedunilaterally.