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.
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A statutory director (or statutory managing director or formally a director under the articles of association) has a special position in employment law.
Their relationship differs from that of a regular employee. In some cases, the statutory director performs work based on a management agreement instead of an employment contract. With regards to employment law, we summarise the special aspects of this position.
An employer can conclude three successive temporary employment contracts within a period of three years with an ordinary employee without there being any question of this being converted into a contract for an indeterminate period. However, an employment contract with a statutory director may provide that the period of three years can be extended indefinitely.
A termination under company law also results in the end of the relationship with the statutory director in terms of employment law. An exception applies to the statutory director of a foundation.Unlike an ordinary employee, the statutory director cannot request the employment relationship to be restored. Like an ordinary employee, he/she has the right to transitional compensation and possibly fair compensation. The latter is only possible if if a serious imputable act or omission can be attributed to the employer.
An ordinary employee who has concluded a termination agreement with the employer can change their mind about it within 14 days. A statutory director does not have this right. Therefore he/she can only get out of a termination agreement by using the usual grounds for overturning it, such as error or deceit [vitiated consent].
The statutory director of a private company or limited company (insofar as the latter still has an employment contract) is excluded from the preventive dismissal test. Therefore the employer does not need the consent of UWV or the district court for them to be dismissed. This is required to dismiss the director of a foundation, but it’s not required for the dismissal of a statutory director of an association.
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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