2 October 2024
I want to dismiss my employee, what should I consider?
Terminating an employee under Dutch labor law is not a straightforward process.
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.
"*" indicates required fields
2 October 2024
I want to dismiss my employee, what should I consider?
Terminating an employee under Dutch labor law is not a straightforward process.
Read more
26 August 2024
Limits to freedom of expression in the employment relationship
The conflict between Israel and the Palestinians, corona, the election results. Some examples of social issues that can lead to intense emotions of employees and firm statements in the workplace and via social media.
Read more
21 August 2024
Bonus: a favor or a right?
In addition to the fixed salary, an employee can often earn an additional bonus. Conditions may be attached to the payment of the bonus. The employment contract or bonus scheme often states that the employer determines whether an employee is entitled to a bonus. This is called “discretionary authority.” How free is the employer to decide whether or not to pay a bonus? And can an employee acquire a right to the bonus?
Read more
12 August 2024
Payment of wages during a sabbatical
Has one of your employees requested a sabbatical, and do you want to know what your obligations are as an employer? In this article, I will explain what you need to consider.
Read more
12 August 2024
Conflict at work? Practical guidance for employers
Sometimes tensions can run high in the workplace. A (potential) labor conflict can create a very stressful situation, not only for employees but also for employers. Below are some practical tips on how employers can best handle this.
Read more
5 August 2024
Effects of legislative proposal on current non-compete clauses
The Minister of Social Affairs aims to put an end to the automatism with which employers include a non-compete clause in an employment contract.
Read more
31 July 2024
Free holiday days during illness?
Illness and holidays: a topic that many employers have to deal with. How does it work if an employee becomes ill before or during his holiday and how does it then work with cancelling holiday days in this regard?
Read more
24 July 2024
Whistleblower protection: no nonsense!
Whistleblowers are indeed protected from dismissal. What does this mean in practice?
Read more
22 July 2024
Getting started with the future of pensions act as works council
In this article, we provide some practical tips for the Works Council to have control over the complex pension dossier for the company and employees.
Read more