Area of expertise | Labour Law & Restructuring

The employment contract forms the legal foundation of the relationship between employer and employee. This relationship begins with clearly defined agreements to prevent future disputes. The employment contract sets out the terms and conditions of employment, as well as specific clauses such as a probationary period, non-compete and non-solicitation clauses, a secondary employment prohibition, and penalty clauses. Specific statutory rules and conditions apply to the valid inclusion of these clauses. In addition, any applicable collective labour agreement (CAO) also plays a role in determining the content of the employment contract.

A key aspect of employment law is the termination of the employment contract. Dismissal can occur in various ways—for example, by mutual agreement, with terms recorded in a settlement agreement, or through a formal dismissal procedure. A dismissal must always be based on reasonable grounds. The legal grounds for termination are listed in the Dutch Civil Code. Depending on the reason for dismissal, the employer may need to submit a dismissal request to the Employee Insurance Agency (UWV) or file a petition for termination with the subdistrict court. The most severe form of dismissal is summary dismissal, which requires a high degree of care and urgency. The dismissal of a statutory director is subject to its own specific legal rules. An employment law attorney can advise you on the appropriate dismissal procedure, its financial implications, and any statutory severance payments.

The desire or need to restructure can constitute a legitimate ground for dismissal. A restructuring process involves many steps, including drafting a reorganization plan and a social plan, budgeting, preparing forecasts, engaging in various consultation and notification procedures (with the works council, trade unions, and the UWV), and conducting dismissal procedures. Specific legal rules apply to dismissals resulting from a restructuring, taking into account employee rights—for example, regarding the order of dismissal (based on the “last in, first out” principle) and the obligation to pay statutory transition compensation. A successful restructuring requires thorough preparation and carefully considered decisions. Timely and expert legal guidance is therefore essential.

Labour law is constantly evolving. Our team of labour law specialists stays abreast of the latest legislative and jurisprudential developments, ensuring that you receive accurate, current, and strategically sound legal advice.