3 December 2025
Don’t count the number of warnings
That five official warnings do not automatically justify a lawful dismissal was once again confirmed in a recent ruling by the Gelderland Subdistrict Court.
Read more
The reimbursement for a dismissal could involve transitional statutory compensation, fair compensation, the result of negotiations or a golden handshake.
In principle, anyone whose employment agreement will be terminated upon the employer’s initiative has the right to a transitional compensation. The amount depends on the salary and the duration of the employment and a maximum sum applies.
In (exceptional) circumstances, the employee also has a right to an additional reimbursement upon dismissal, the so-called fair compensation. This is due, for example, if the employer has behaved in a seriously reprehensible way or has deliberately poisoned the employment relationship.
If the parties make a settlement agreement and terminate the employment agreement with mutual approval, they can agree to what they like. The right to the transitional compensation and the fair compensation lapses after the termination agreement has been concluded. Usually the employee will negotiate a reimbursement for the dismissal that is equal to or higher than the legally prescribed reimbursement for the transition.
Finally, the parties in the employment agreement may agree on an (additional) reimbursement for redundancy. This contractual reimbursement for redundancy is also known as a golden handshake.
In agreements with members of the board of directors and top employees it is particularly common to negotiate a high sum for the compensation in a contract. In some cases however, such compensation may be capped [by the Senior Executives in the Public and Semi-Public Sector (Standards for Remuneration) Act].
GMW lawyers will be happy to help you with all your employment-related legal issues. If you have any questions, please contact us directly using the enquiry form below or +31 (0)70 3615048. Our pension and employment lawyers will be happy to support and advise you.
GMW lawyers will be happy to help you with all your employment law issues. Our lawyers assist both employers and employees.
Do you have a question? Please feel free to contact us.
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3 December 2025
Don’t count the number of warnings
That five official warnings do not automatically justify a lawful dismissal was once again confirmed in a recent ruling by the Gelderland Subdistrict Court.
Read more
30 October 2025
Heineken employee facing termination? We offer legal advice
Heineken has announced a large-scale reorganisation, as a result of which many positions will become redundant. Those employees will be offered a settlement agreement to which a so-called social plan will apply. If this applies to you, please continue reading…
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10 September 2025
Does a Validsign signature equal consent?
Employment contracts can end in various ways. For example, a fixed-term employment contract often referred to as a “temporary contract” expires on the agreed date.
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27 August 2025
The scope of the redeployment obligation
Does your employer say that you have been dismissed due to organizational changes? Does this mean your position is no longer available?
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25 August 2025
Can I go on vacation while sick?
We regularly receive the question of whether sick employees can go on vacation. In this blog, we answer this question and explain the applicable rules.
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13 August 2025
Summary dismissal: steps to take
In many cases, a summary dismissal does not meet the strict legal standard of the existence of an urgent reason. This was also the case in a recent case brought before the court.
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11 August 2025
Termination after concealing a second job
In today’s workplace, it's not uncommon for employees to juggle multiple jobs. However, what happens when an employee hides a second job from their employer?
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23 July 2025
Medical decision making in the employment relationship from the employer’s perspective
Employers often perceive sickness notifications and absenteeism as a significant burden. This is understandable. Employees on sick leave would also prefer to be at work rather than at home unable to work.
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16 July 2025
Business closure: what to do with employees?
The company is shutting down. This may be due to poor financial performance or because the sole owner is seriously ill or has passed away. However, ceasing operations and closing the doors does not mean that employment contracts with staff automatically end. So how does this work?
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