There are all sorts of reasons for terminating an employment contract, but can you just do it on a whim? And what steps must be followed to do so? In this blog, we’ll outline the most important options for you.
Through a VSO
A VSO, also known as a settlement agreement or termination agreement, is the most common way to terminate an employment contract. To do this, the employer and employee must agree on the terms under which the employment contract will end and set these out in the VSO. This terminates the employment contract without the need for a court or the UWV to intervene.
Through the courts
An employer cannot simply terminate an employment contract without the employee’s consent. This is only possible if one of the grounds specified in the law applies and the employee cannot be reassigned. The main grounds listed in the law are poor job performance, a disrupted working relationship, and serious culpable conduct.
Through the UWV
There are also situations in which a permit from the UWV is required before the employment contract can be terminated. This is the case with layoffs for business reasons, such as restructuring or reorganization, and in the event of long-term illness. In these situations as well, it must be determined whether the employee can be reassigned.
Immediate Dismissal
In exceptional cases, it is possible to dismiss an employee with immediate effect. However, this requires that a truly serious issue be present and that the employer take immediate action. Examples include theft or fraud.
Temporary contracts
A temporary contract expires at a predetermined time, unless it is extended. A temporary contract can only be terminated early if this is also specified in the employment agreement. In that case, one of the procedures mentioned above must be followed.
Resignation by the Employee
An employee may terminate the employment agreement at any time without needing to provide a reason. If the employee terminates a temporary contract that does not specify that this is permitted, the employee is liable to pay compensation.
Statutory director
Please note! Dismissal is somewhat more complicated for a statutory director. When a statutory director leaves the company, both corporate law and employment law must be taken into account.
Prohibitions on Termination
The law provides employees with additional protection in certain situations, such as when they are sick or pregnant. A prohibition on termination ensures that these employees are protected against dismissal.
Which termination procedure applies in your situation?
The options for terminating an employment contract and the steps that need to be taken vary depending on the situation. It is therefore important to choose the right strategy in advance. An incorrect approach can have significant legal and financial consequences. Our employment law attorneys are happy to advise you on the options and key considerations regarding termination.
