19 June 2023
Termination of the employment agreement due to unsatisfactory performance is possible under Dutch employment law.
You can only be dismissed for unsatisfactory performance if your employer has given you sufficient opportunity to improve your performance. This is also known as a Performance Improvement Plan (“PIP”).
Below are 5 key points you need to know before starting a PIP.
In general, yes. An employer has the right to assess the performance of employees and provide instructions on how to do develop and improve. That being said, the employer must be able to demonstrate that improvement is required. Usually, one or more negative performance evaluations precede the start of a process of improvement.
The law does not describe what a good improvement plan should look like, but from the many rulings of judges on this point, you can say that a proper PIP meets the following requirements:
The law does not specify what the duration of a PIP should be. In case law, improvement processes of 3 months to 1 year are considered acceptable. The important thing is that the PIP is at least long enough to allow the employee to actually improve.
The following factors play a role in the length of a PIP:
Record this, for example with an email message. Let your employer know in the interim that you do not agree with the way the PIP is going and why.
This is indeed possible. However, it must then be clear that your employer has given you a realistic and serious chance to improve. You can also expect that your employer has offered the necessary support to make the improvement process a success. Moreover, your employer is obliged to investigate whether you can be redeployed to another suitable position within the company.
Would you like to discuss a Performance Improvement Plan or do you have another legal question? Please do not hesitate to contact me directly.
19 February 2024
Shortly before the summer holidays, the Supreme Court delivered two rulings on summary dismissal. These refer to the urgent reason notice requirement in the dismissal letter and the claim for compensation from an employee who is summarily dismissed.Read more
12 February 2024
Need a quick update on the latest developments in employment law? Amber Willemsen and Seliz Demirci will give a webinar 'Employment law for HR professionals: update 2024' on 27 February 2024.Read more
28 January 2024
Most employers in the Netherlands are aware that the rollout of a restructuring involving compulsory redundancies is bound by the necessary rules.Read more