30 April 2025
Facing redundancy in the Netherlands?
If you’re employed by a corporation in the Netherlands and are facing redundancy, this article provides practical advice on how to navigate the situation.
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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30 April 2025
Facing redundancy in the Netherlands?
If you’re employed by a corporation in the Netherlands and are facing redundancy, this article provides practical advice on how to navigate the situation.
Read more
24 April 2025
Restructuring: selection based on suitability is permitted
How does an employer determine which employee is made redundant during a reorganisation? The reflection principle (in Dutch: afspiegelingsbeginsel) is the obvious statutory starting point.
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14 April 2025
Client or Employer?
Since January 1, 2025, the Dutch Tax Authority have resumed enforcement of payroll taxes, focusing on identifying false self-employment on the work floor.
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2 April 2025
Right of consent for works council in a group context
The works council has a legal right of consent when an employer plans to change a remuneration system.
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26 March 2025
Copying company information to a private email
In today’s digital workplace, employees generally have easier access to sensitive company information.
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18 March 2025
Holiday During Sick Leave: Is Permission Required?
What are the rights and obligations of employees who wish to go on holiday while on sick leave? In this blog, we explain the legal rules, the role of the company doctor, and the possible consequences if a sick employee goes on holiday without permission.
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17 March 2025
Obligations under the Collective Dismissal Notification Act
Under the Dutch Collective Dismissal Notification Act (WMCO), you are required to notify the Employment Insurance Agency (UWV) of the dismissal of 20 or more employees within three months. In this blog, we share some practical tips.
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5 March 2025
Building a paper trail in Dismissal Cases
Wherever people work together, employment relationships can be disrupted due to various circumstances. If an employer no longer wishes to continue an employment contract for this reason, the court will assess whether there is a valid ground for termination. In such cases, the dismissal file plays a crucial role.
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25 February 2025
Immediate Dismissal of a Sick Employee
During the first two years of an employee’s illness, an employer is generally not allowed to terminate the employment contract. However, there are exceptions to this rule. The dismissal protection does not apply if the sick employee is dismissed for urgent reasons, meaning they are dismissed on the spot (summary dismissal).
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