The 8 legal grounds for dismissal: on what basis is dismissal allowed?

Grounds for dismissal are the legal reasons Why an employer may fire you. They can be found in article 7:669 of the Civil Code. Without such a valid reason, your employer may not terminate your employment contract. This is as an employee protection against arbitrary resign.

Dutch dismissal law has 8 regular grounds for dismissal plus 1 combination ground. These lands are divided into:

• Business-related reasons (such as reorganisation)
• Personal reasons (such as dysfunction)
• Other circumstances (the so-called h-ground)

Important to know: your employer must not only have a valid ground for dismissal, but must also be able to provide it proofs and be able to present it with sufficient substantiation in any lawsuit or proceedings at the UWV. Moreover, permission must first be obtained from the UWV or the subdistrict court. This is done through the preventive dismissal test. 

Each ground for dismissal has a legal abbreviation, e.g. the a-ground, b-ground, etc. We briefly explain which grounds there are and what they mean:

This is the most commonly used ground for dismissal in the Netherlands. This has to do with the fact that companies can now simply be in bad financial weather. Even if there is less work for all staff, an employer may proceed with reorganisation. This can be done by: 

• The loss of a major client
• Declining sales
• Necessary cuts
• Closure of an establishment

Note: Your employer cannot simply cite this reason. It must be shown that work is structurally down - for at least 26 weeks. If there is a short-term temporary dip in work supply, this is not an immediate reason for your dismissal. 

The following rules also apply to dismissals for economic reasons:

• Downsizing principle determines who should leave
• You are always entitled to a transition allowance
• The employer must request the dismissal from the UWV
• As an employee, you often have the option to leave with a settlement agreement

Are you longer than 2 years ill? Then your employer may request dismissal. But only if:

• You cannot return to your own job
• No other suitable position is available
• Reintegration is not possible

During these 2 years, your employer has a reintegration obligation. He should do everything possible to help you get back to work. Does this not happen properly? Then the dismissal is usually refused.

Do you regularly report sick? Then this too can be a ground for dismissal. But there are strict rules attached to this. For instance, the following aspects are taken into account:

• You are ill above average frequency (more than 3x per year)
• There is no clear prospect of improvement
• There is an unacceptable burden on business operations

Your employer should first talk to you about the causes. He should also see whether adjustments in your work can help. Illness due to the work itself (such as burnout due to work pressure) is not a valid ground for dismissal.

Are you not functioning well enough according to your employer? Then your employer must first give you a chance to improve. This means:

• Clear conversations about what is not going well
• Concrete agreements on improvement
• Sufficient time to improve (usually at least 2-3 months)
• Possibly additional guidance or training

Only if there is no improvement can dismissal follow. Your employer must submit a improvement process be able to demonstrate with:

• Performance reviews
• Written warnings
• Improvement plans
• Review moments

Tip: Always ask for written confirmation of appointments and keep all documents.

This involves serious culpable behaviour. Consider:

• Theft or fraud
• Leaks of company information
• Refusing to carry out orders
• Repeated lateness
• Violation of company rules

The behaviour must be so serious that your employer cannot be expected to keep you employed. A single misstep is usually not enough. There must be:

• Repeated misconduct, or
• One very serious offence

In extremely severe cases, even summary dismissal follow.

We actually rarely see this ground for dismissal in our legal practice. It concerns situations where you refuse work because of serious conscientious objections. For example:

• A doctor unwilling to perform euthanasia
• Refusal to work on Sunday for religious reasons

Your employer should first see if other work is possible. Only if that is not possible is dismissal possible.

Is the working relationship so disrupted that working together is no longer possible? Then this can be a ground for dismissal. Conditions:

• The disruption is sustainable (not temporary)
• Recovery is no longer possible
• It is not (only) down to the employer

Examples:

• Irreconcilable conflicts with colleagues
• Complete loss of confidence
• Impossible cooperation after reorganisation

Note: If the employer is (partly) to blame for the disruption, dismissal is often refused.

This is the residual category for exceptional situations. These are circumstances that:

• Not covered by other grounds
• Being so special that dismissal is reasonable

Examples include:

• Revocation of a necessary licence
• Detention that prevents you from working
• Moving abroad

This ground is tested strictly. Your employer really has to show that the situation is exceptional enough to justify dismissal.

• Frequent absenteeism (c)
• Dysfunction (d)
• Culpable action (e)
• Work refusal (f)
• Disrupted employment relationship (g)
• Other circumstances (h)

Upon dismissal on the i-ground, you may be entitled to a additional payment on top of you transition allowance.

The transitional allowance amounts to 1/3 monthly salary per year of service. This applies to everyone, regardless of your age or years of service.

But note that you also get compensation for portions of years of service. So it is important to check for your temporary contract what your date in service and your date out of service are.

Your employer cannot just decide to fire you. Permission is always needed from:

• Economic reasons (a-ground)
• Long-term illness (b-ground)

• All other grounds for dismissal (c to i)

These bodies review whether:

• There is a valid ground for dismissal
• Your employer has done everything correctly
• Dismissal really necessary
• No other solution is possible

This is called the preventive dismissal test - an important protection for you as an employee.

Upon dismissal, you have several rights:

• Your employer must follow the right route
• You get the chance to tell your story
• The ground for dismissal must be proven

• At least 2 years of employment
• Also in case of dismissal for economic reasons
• Calculate your severance pay here

• Usually 1-4 months, depending on your years of service
• Or disbursement of this period

• If the dismissal is not culpable
• Apply immediately after dismissal

• Save all emails and letters
• Take notes of conversations
• Ask for written confirmation of verbal agreements

• Read your employment contract and collective agreement carefully
• Check if the ground for dismissal is correct
• Check that all procedures have been followed

• Don't wait until it's too late
• A free consultation can provide a lot of clarity
• Get your review settlement agreement

• However difficult it is
• This strengthens your position
• And keep your good references

• Is any other function possible?
• Can a settlement agreement be a better solution?
• What are your chances in the job market?

Dutch dismissal law offers you a lot of protection. Your employer cannot just throw you out on the street. There must be a valid ground for dismissal, which must also be proven. Moreover, the UWV or the judge must first give permission.

Know your rights, document everything and seek timely help if dismissal is imminent. The earlier you take action, the better your position. Many employers make mistakes in the dismissal procedure. 

Do you have questions about your situation? Or would you like to know whether the ground for dismissal is justified in your case? Then contact us for a free consultation.