A workplace conflict can get seriously out of hand. Even when a disagreement initially seems open to discussion, trust between employer and employee can continue to erode. Parting ways can offer a solution to this. But when is such a strained working relationship serious enough to justify termination? And should an attempt be made first to restore the working relationship? In this blog, we discuss the rules and options.
When is a working relationship considered to be broken?
A disrupted employment relationship is a conflict between an employer and an employee that can no longer be easily resolved. Therefore, not every labor dispute or difference of opinion can serve as grounds for termination. For that to happen, the relationship must first be seriously and permanently disrupted.
It is important to note that a strained employment relationship refers to a conflict between the employee and the employer. In this context, the employer may also be a supervisor. In principle, conflicts between colleagues do not constitute grounds for termination. Of course, this may be different if the conflict between colleagues also disrupts the relationship with supervisors.
First, try to resolve the labor dispute
Because a conflict must be“serious” and“long-standing” before it can lead to termination, the employer is generally expected to first make an effort to restore the working relationship. This can be done through a meeting, for example, with the supervisor and/or HR. Another option is to use mediation.
Although it is not mandatory to attempt mediation before proceeding with a termination, it is advisable in most cases. This is because the court places great importance on this when assessing whether the employer has done enough to repair the relationship.
At this stage, it is also wise to thoroughly document all steps taken and agreements reached. This will make it possible to demonstrate later what the employer did to resolve the conflict.
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Before termination is possible, the employer must, in principle, also investigate whether reassignment to another suitable position is possible. In doing so, the employer must consider opportunities within the organization and, where applicable, within the group to which the employer belongs.
Reassignment is not always the obvious solution. If the disruption is so severe that collaboration in another position is not possible, this may be a reason why reassignment is not a viable solution.
Prohibition on Termination and Illness
It is common for an employee to also report sick during a labor dispute. If the employee is actually sick, the employer generally cannot terminate the employment contract during the first two years of the illness. During this period, there is usually ample opportunity to try to resolve the conflict. The company physician can also play a role in this, for example, by recommending mediation.
An employee’s illness does not always preclude termination. If the request for termination is unrelated to the illness, the employer may still be able to terminate the employee in some cases. However, this is a high bar to clear. Employers must therefore exercise caution when illness and workplace disputes overlap.
Dismissal through the courts
If it appears that the employment relationship can no longer be restored, the employer may request that the subdistrict court terminate the employment contract. The employer must then substantiate why there is a serious and lasting disruption and why the continuation of the employment relationship can no longer be expected.
The judge determines whether the legal requirements have been met. If so, the employment contract is terminated. In principle, the employee is then entitled to a transition payment, and the judge will take the notice period into account when setting the termination date. In some cases, the employee is entitled to additional compensation—known as equitable compensation—because the employer has acted in a seriously culpable manner. The amount of this compensation can be quite substantial.
Termination with a Settlement Agreement
Court proceedings are not always necessary. The employer and employee can also reach mutual agreements regarding the termination of the employment contract and set these out in a settlement agreement (VSO). This allows them to avoid the high costs and risks associated with litigation.
The settlement agreement sets forth the agreements between the parties, such as the termination date and any compensation. An employee is not required to sign a settlement agreement.
Advice on Termination Due to a Strained Working Relationship
Termination due to a disrupted working relationship requires careful consideration. It is important to first determine whether the labor dispute can be resolved and to thoroughly assess the conditions for termination.
Our employment law attorneys advise employers and employees on labor disputes and termination. We are happy to help you identify the options, risks, and next steps and determine an appropriate strategy.
