Note: This situation applies to regular termination procedures and not to summary dismissal (Dutch: 'ontslag op staande voet'), which has different legal requirements and consequences.
Negotiations have failed, and all attempts at a mutual termination agreement have fallen through. The workplace environment is tense, and the employer, convinced they have a strong case, decides it's time to take legal action. The next step? Filing a dissolution request (Dutch: 'ontbindingsverzoek') with the court. This crucial phase can determine the future of both the employee and the employer, hinging on the court’s judgment.
Grounds for termination
The cantonal court can dissolve an employment contract based on several legally recognized reasons. The grounds for termination, as specified in Article 7:669 paragraph 3 of the Dutch Civil Code (letters a to h), are as follows:
Economic reasons: Justified by financial hardships or a downturn in business.
Long term illness: If the employee has been ill for more than two years without signs of recovery.
Frequent absenteeism: Persistent absenteeism that significantly impacts business operations.
Underperformance: The employee's failure to meet job requirements despite adequate support and opportunities for improvement.
Culpable behavior: Serious misconduct or contract breach.
Conscientious objections: Ethical or moral objections without reassignment options.
Disrupted employment relationship: Irreparably broken employer-employee relationship.
Other circumstances: Any other substantial reason making continuation unreasonable.
Procedure for filing a dissolution request
Preperation: The employer prepares and submits a detailed petition to the cantonal court, outlining the reasons for the requested dissolution and providing supporting evidence. The employee can also submit a defense statement, presenting their arguments and evidence against the termination.
Hearing: The court schedules a hearing where both the employer and the employee can present their arguments. The employee has the right to defend against the employer’s claims and present their side of the story.
Decision: After reviewing the evidence and hearing both parties, the cantonal court makes a decision. If the court agrees with the employer’s reasons, it will set an end date for the employment contract.
Transition compensation: If the dissolution is granted, the employer is in principle required to pay transition compensation (transitievergoeding) to the employee, aiding their transition to new employment.
Understanding transition compensation
It's important to distinguish between termination compensation (beëindigingsvergoeding) and transition compensation (transitievergoeding), as they are often confused.
Termination compensation (Dutch: 'Beëindigingsvergoeding'): This is typically agreed upon in a mutual settlement agreement. It is a negotiated severance pay and often serves as compensation for voluntarily terminating the contract or to avoid lengthy legal disputes.
Transition compensation (Dutch: 'Transitievergoeding'): This is given to an employee when a dissolution request is successful. It is calculated using a statutory formula based on the employee’s length of service and monthly salary.
How high will my transition compensation be?
Calculate your transition compensation here. It’s calculated based on the employee’s length of service and monthly salary:
Conclusion
Hire a lawyer who is well-versed in the entire court proceeding. Legal proceedings can bring a lot of stress, but they also leave room for negotiation. Having a skilled negotiator by your side can save you a lot of trouble and help you achieve the best possible outcome.
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