2 October 2024
Terminating an employee under Dutch labor law is not a straightforward process.
If it comes to that and you want to dismiss your employee, you must adhere to certain rules. Even if your employee is a minor and it’s their first part-time job. The protection of employees – regardless of age – has recently been reaffirmed in a ruling by the Zeeland-West Brabant District Court. [1]
When terminating employment, you must comply with the statutory notice period or the notice period specified in the employment contract. Failure to do so may entitle the employee to a fixed compensation for the period that the employment contract would have continued if the proper notice period had been observed. Recently, a butcher wrongfully dismissed his fourteen-year-old employee who assisted on Saturdays in the butcher shop. The boy was dismissed with immediate effect, breaching the notice period. As a result of this wrongful dismissal, the employer had to pay the fourteen-year-old employee compensation of €427.68, equivalent to one month’s salary. Not adhering to the notice period can be costly.
If the decision to terminate or not renew the employment contract originates from you as the employer, your employee usually has a right to severance pay. This compensation is intended to financially support your employee during the transition to a new job. The amount of severance pay is calculated based on the length of employment and the gross monthly salary. Employees are entitled to 1/3 of their gross monthly salary per year worked. All fixed and variable salary components are included in the gross monthly salary. A bonus may therefore partially count towards the calculation, but not pension contributions or travel allowances. Your employee is entitled to severance pay from day one. If you have questions about calculating this compensation, we can assist you.
Employees are also protected from dismissal while they are on sick leave. You cannot terminate the employment contract during your employee’s incapacity for work, unless it has lasted at least two years. There are exceptions to this rule: the dismissal prohibition does not apply during a complete cessation of your business due to a reorganization or if your employee’s fixed-term contract would have ended anyway. However, the general rule is that your sick employee is protected from dismissal.
When dismissing your employees, you must adhere to many rules. Your employee usually has a right to severance pay, and employees are protected from dismissal during illness. The notice period must be observed. Compliance with these rules is crucial for you as an employer to avoid a compensation claim from your employee, even if they only have a part-time job on Saturdays.
If you have questions about the points mentioned, leave, or wages, or if you are looking for an employment lawyer in The Hague, feel free to contact us.
[1] ECLI:NL:RBZWB:2024:1238, Rechtbank Zeeland-West-Brabant, 10780063 AZ VERZ 23-64 (E) (Rechtspraak.nl)
