23 June 2025
Can you dismiss a ‘benchwarmer’?
A "benchwarmer" is an employee who has little to no work and, as a result, is not productive enough.
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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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23 June 2025
Can you dismiss a ‘benchwarmer’?
A "benchwarmer" is an employee who has little to no work and, as a result, is not productive enough.
Read more
16 June 2025
When Embassy’s enter into an employment contract in the Netherlands
When an embassy in the Netherlands enters into an employment contract with an employee, it may expect that the laws of its home country will apply. However, this is often not the case.
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11 June 2025
Booking.com employee facing termination? We offer legal advice
Booking.com has announced a large-scale reorganisation, as a result of which many positions will become redundant.
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4 June 2025
Overtime can be a hot topic
Due to the tight labor market, many sectors are placing greater demands on employees than before. Overtime, meaning work performed outside the agreed-upon hours, has therefore become more common. This can lead to problems, as illustrated by a recent court case.
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28 May 2025
Web surfing on company time
Replying to a private message or quickly checking the news during work hours: most of us do it occasionally.
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26 May 2025
Did chronic illness play a role?
It is up to employers to decide whether or not to renew a fixed-term employment agreement. There can be various reasons for not extending an employment agreement: the employee may not fit well within the team, their performance may not meet expectations, or there may simply not be enough work available.
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19 May 2025
The remuneration of temporary workers under the ABU collective labor agreement
According to a significant ruling by the Supreme Court, temporary workers whom are employed through an agency are entitled to the same compensation as employees who are directly employed by the actual employer. This right is based on European law and applies to all essential working conditions.
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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.
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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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