How does employment law work in the Netherlands?

In the Netherlands, an employer cannot simply dismiss you. Strict rules apply: the employer must always have a valid reason, and in most cases must seek permission from the UWV or the subdistrict court. If you are dismissed, you are often entitled to a transition payment.

Last checked: March 2026. Legal information is subject to change — always check the current legislation at wetten.nl.

What does the law say?

Dismissal law in the Netherlands is largely governed by the Civil Code, Book 7, Title 10. This forms the legal basis for employment contracts and dismissal. The rules changed significantly in 2015 following the Work and Security Act (Wwz). Since then, clear rules have applied to both employers and employees.

The law distinguishes between different types of dismissal. It makes a big difference how you are dismissed. There are four main routes:

Via the UWV — for business-related reasons (reorganisation, bankruptcy) or long-term incapacity for work (illness lasting more than two years).
Via the subdistrict court — for personal reasons, such as poor performance, a disrupted working relationship or culpable conduct.
By mutual consent — you and your employer agree on the dismissal together. This is done via a settlement agreement (a written agreement).
With immediate effect — immediately and without notice, only for urgent reasons such as theft or serious misconduct.

An employer cannot simply dismiss you without following one of these routes. This is known as unlawful dismissal. In that case, you can ask the court to set aside the dismissal, or you can claim compensation.

Article 7:669 of the Dutch Civil Code (check this article on wetten.nl for the most up-to-date version) lists the valid grounds for dismissal. These include reasons such as business circumstances, long-term illness, poor performance, culpable conduct or a disrupted working relationship. The law refers to these as ‘reasonable grounds’. Without such a valid reason, the court may overturn the dismissal.

Section 7:673 of the Dutch Civil Code (check this section on wetten.nl for the most up-to-date version) governs the transition payment. This is a payment you receive as an employee if the initiative for the dismissal lies with the employer. You are entitled to this from the first day of your employment — a minimum duration is no longer required.

When does this apply to you?

These rules apply to virtually everyone with an employment contract in the Netherlands. Whether you work full-time, part-time, on a temporary or permanent basis — the dismissal rules apply.

Do you have a permanent contract? Then you are fully protected. Your employer needs a clear reason and must follow the correct procedure. Without that procedure, the dismissal may be invalid.

Do you have a temporary contract? In that case, the contract ends automatically on the expiry date — that is not dismissal. But rules apply here too. Your employer must inform you in writing at least one month before the expiry date whether the contract will be renewed. This is known as the notice period. If they fail to do so, you are entitled to compensation of up to one month’s salary.

Are you being dismissed during your probationary period? Then different, more flexible rules apply. In principle, the employer does not need to give a reason. But there are limits even during the probationary period: dismissal on grounds of pregnancy, trade union membership or discrimination is always prohibited.

Are you ill? Then a ban on dismissal applies whilst you are ill. In principle, your employer may not dismiss you whilst you are ill. Exceptions exist, but they are rare.

Are you pregnant or on maternity leave? A ban on dismissal applies in these cases too. This protected period also applies after your maternity leave, up to six weeks after returning to work.

In short: the rules apply broadly, but the specific situation makes a big difference. It matters whether you are on a permanent or temporary contract, whether you are ill, and what the reason for dismissal is.

Step-by-step guide — what can you do now?

Read your notice of dismissal carefully. Does it state the reason for dismissal? Is a notice period specified? Make a note of the date of receipt — this is important for deadlines.
Check whether the procedure is correct. Has the UWV or the subdistrict court been involved? Or is there a settlement agreement? If you do not know, that is already a sign that you should seek help.
Don’t sign anything straight away. Signing a settlement agreement without reading it properly is a common mistake. You always have a cooling-off period of at least three days after signing (see the Civil Code for the exact provision).
Check whether you are entitled to a transition payment. Calculate the amount using the calculator on uwv.nl. The payment is based on your salary and length of service.
Apply for unemployment benefit (WW) at the UWV. Do this as soon as possible after your dismissal. If you wait too long, you may lose your entitlement to benefits. Go to uwv.nl to apply.
Seek legal advice. Are you unsure whether the dismissal is justified? Then contact a legal advisor, solicitor or legal expenses insurer. Many people miss out on money because they do not know what their rights are.
Consider lodging an objection or taking legal action. Do you think the dismissal is unfair? You can ask the court to overturn the dismissal or award fair compensation. Strict deadlines apply here — act quickly.

Common mistakes

Signing the settlement agreement straight away. Many people sign under pressure, without knowing what they are giving up. Always take the time to have everything checked.
Not realising you have a cooling-off period. After signing a settlement agreement, you have at least three days to withdraw from the agreement. Use that time if you are unsure.
Applying for unemployment benefit too late. It is best to submit your unemployment benefit claim immediately after your last day of work. Waiting costs you money.
Forgetting to negotiate the transition payment. The transition payment is a statutory minimum. In some cases, you can negotiate a higher amount — especially if the dismissal is questionable.
Failing to check whether the dismissal ban applies. Are you ill, pregnant or a trade union member? If so, additional protection rules apply. Many people are unaware of this and wrongly accept dismissal.

Frequently asked questions

What is a transition payment and am I entitled to it?

A transition payment is a sum of money you receive if your employer initiates your dismissal. You are entitled to it from your first day of work. The amount depends on your salary and the number of years you have been employed. Calculate it at uwv.nl. You are not entitled to it if you are dismissed with immediate effect due to serious misconduct on your part.

Can my employer dismiss me if I am ill?

In principle, no. There is a ban on dismissal whilst you are ill. Your employer may not dismiss you whilst you are ill — at least not during the first two years of your illness. There are exceptions, such as a business closure or a dismissal procedure that was already underway before you fell ill. Are you unsure? Always seek legal advice.

What is the difference between dismissal via the UWV and via the subdistrict court?

The UWV handles dismissal applications based on business reasons (such as reorganisation) and long-term illness. The subdistrict court handles personal reasons, such as poor performance or a seriously disrupted working relationship. The employer chooses the route based on the reason for dismissal. If they choose the wrong route, the dismissal may be invalid.

Can I challenge a dismissal?

Yes. If you believe the dismissal is unfair, you can take the matter to court. The court may overturn the dismissal — in which case you simply return to work. Alternatively, the court may award you fair compensation in addition to the transition payment. Strict time limits apply to such proceedings. So act quickly and seek legal advice.

What is summary dismissal?

Summary dismissal means you are dismissed immediately and without notice. This is only permitted for what is known as ‘urgent cause’ — such as theft, serious aggression or gross negligence. The employer must inform you of this immediately and explain the reasons. Do you disagree? Then lodge an objection as soon as possible. You only have a short time to respond.

Relevant legal provisions

Section 7:669 of the Dutch Civil Code — reasonable grounds for dismissal (check on wetten.nl)
Section 7:671 of the Dutch Civil Code — termination of the employment contract (check on wetten.nl)
Article 7:671b of the Dutch Civil Code — termination via the subdistrict court (check on wetten.nl)
Article 7:672 of the Dutch Civil Code — notice periods (check on wetten.nl)
Article 7:673 of the Dutch Civil Code — transition payment (check on wetten.nl)
Section 7:677 of the Dutch Civil Code — summary dismissal and urgent cause (check on wetten.nl)
Article 7:681 of the Dutch Civil Code — nullification or fair compensation in the event of unlawful dismissal (check on wetten.nl)

How does dismissal law work in the Netherlands | Claim.Cafe