Stefan Sagel advises Dutch parliament on revision of Dutch law governing dismissal

September 10, 2013

The law governing dismissal should become simpler and unambiguous. This is why the social partners came up with a new system: an employer who dismisses an employee for economic reasons, will always end up at the UWV, the Dutch Governmental Employment Agency, where a permit to give notice will have to be obtained. An employer who wants to terminate employment for unsatisfactory performance will however have to go to court, to request a dissolution of the contract.

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The social partners are convinced that this system is clear. But during a recent hearing of the Dutch Second Chamber of parliament it appeared that that is questionable. Employment law experts denounce the continued existence of the dual route. It does not change the possibility that the employer will ‘go shopping’ when one route suits him better than the other.


Also the amount of the “transition fee” that the employer will, according to the plans, need to pay when he dismisses an employee, is far less unambiguous than it seems, says employment lawyer Stefan Sagel of De Brauw. “If the employer has invested in an employee’s employability, he may deduct those investments from the compensation. How can one measure that? That is something that the cantonal court must determine. ‘Also the correction factor on top of that fee is grist for legal battles, experts think. Because what is ‘serious culpability’? That will be determined in lengthy legal battles before the court.


Click here to read the full article (Dutch only)

Source: het Financieele Dagblad, 10 September 2013

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