Expats who work in the Netherlands often wonder how well they are protected against dismissal. The rules in the Netherlands are strict, and employees – including expats – cannot simply be dismissed. Still, employers sometimes try to take advantage of the fact that expats are less familiar with Dutch law.
At Arslan Advocaten we have extensive experience with expat dismissal cases and ensure that their rights are protected.
Dismissal of expats: the basic rules
For expats, in principle, the same dismissal rules as for Dutch employees. An employer can terminate an employment contract only if there is a legal ground for it.
The main dismissal routes are:
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UWV procedure
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In case of dismissal for business economic reasons.
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In case of dismissal after 2 years of illness.
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Subdistrict Court
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In case of dismissal due to underperformance, disrupted employment relationship or gross misconduct.
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Termination by mutual consent
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Via a settlement agreement (VSO).
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Heightened vulnerability of expats
Expats often have a temporary residence permit that is linked to their job. Termination can therefore have particularly far-reaching consequences, such as loss of residence status or having to return to the home country.
Employers and expats should take this into account when negotiating a termination.
Practical examples
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Example 1: An expat from India was dismissed due to restructuring. His employer offered compensation that was too low. Through negotiations with Arslan Advocaten he not only received the transition payment, but also additional compensation due to the employer’s negligent conduct.
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Example 2: An expat from the US was offered a settlement agreement without a cooling-off period. We ensured that the employee made use of the statutory 14-day cooling-off period and was then able to secure better terms.
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Example 3: An expat from Brazil was dismissed for underperformance after 1.5 years of employment. Because the employer had insufficient documentation, the subdistrict court judge rejected the dismissal request and the expat remained employed.
Severance pay for expats
Expats are entitled to the same transition payment as other employees. In addition, the court may award a fair compensation if the employer has acted in a seriously culpable manner.
Checklist for expats upon dismissal
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📄 Check whether the employer has a valid ground for dismissal has.
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📝 Read the VSO carefully and do not sign immediately.
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📊 Check whether you are entitled to a severance payment.
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🕑 Remember that you 14-day cooling-off period have with a VSO.
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⚖️ Always consult a lawyer to review the terms.
Why Arslan Advocaten?
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Many years of experience with expat dismissal cases
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Expert in both employment law and immigration law
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Support in negotiations and proceedings
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Personal and practical advice in clear language
FAQ about dismissal protection for expats
1. As an expat, do I have the same dismissal protection as Dutch employees?
Yes, the law makes no distinction between expats and other employees.
2. Can my employer terminate my residence permit?
No, only the IND decides on residence permits. Dismissal can have consequences for your residence status.
3. What is a transition allowance?
That is the statutory compensation you receive upon dismissal, including for temporary contracts.
4. May I sign a settlement agreement immediately?
No, always take time to consider and have it legally reviewed.
5. Does hiring Arslan Advocaten cost money?
No, often the employer recovers the costs or they are fully recovered by us.
Additional protections and practical tips for expats facing dismissal
Expats in the Netherlands benefit not only from the general dismissal protections but also from specific legal safeguards and procedural requirements designed to ensure fairness. For example, Dutch law requires that employers follow a strict procedure before dismissing an employee, including timely consultation and providing clear reasons. This is especially important for expats who might be less familiar with local customs and legal nuances.
One key element to keep in mind is the mandatory notice period, which varies depending on the length of service, and typically ranges from one to four months. Employers must respect this notice period unless a severance agreement states otherwise.
Severance pay and transition allowance
In most dismissal cases, employees, including expats, are entitled to a transition allowance (transitievergoeding). This compensation is intended to support employees in transitioning to new employment. The amount depends on the duration of employment and the employee’s salary. Importantly, this right applies even if the dismissal is due to economic reasons or after long-term illness.
Special considerations for expats
- Residence and work permits: Expats whose residence status depends on their employment should seek legal advice promptly if faced with dismissal, as termination can affect their right to stay in the Netherlands.
- Language barriers: Contracts and dismissal notices may be in Dutch. Expats have the right to receive clear explanations and translations to fully understand their rights and obligations.
- Collective labour agreements (CAOs): Many sectors in the Netherlands have CAOs that provide additional protections beyond statutory law. Expats should check if their employment is covered by such agreements.
Practical advice for expats
- Document everything: Keep copies of employment contracts, performance reviews, and any correspondence related to dismissal.
- Seek early legal advice: If you receive a dismissal notice, consult a lawyer experienced in Dutch employment law to evaluate your options.
- Negotiate carefully: Some employers may offer a settlement agreement. Understand the implications before signing, especially regarding references, severance pay, and non-compete clauses.
- Know your rights: Understand that unlawful dismissal can lead to reinstatement or additional compensation.
At Arslan & Arslan Advocaten, we specialize in protecting the rights of expats facing dismissal. Our experienced team guides you through Dutch dismissal procedures, ensures your rights are upheld, and helps you secure the best possible outcome. Contact us today for a consultation tailored to your unique situation.
Frequently Asked Questions
Are expats in the Netherlands protected from unfair dismissal?
Yes, expats in the Netherlands are protected by the same dismissal rules as Dutch employees, requiring a legal ground for termination. Employers cannot dismiss employees without following proper legal procedures.
What should I do if I receive a settlement agreement from my employer?
You should carefully read and not sign the settlement agreement immediately, and take advantage of the statutory 14-day cooling-off period. Consulting a lawyer can help you understand the terms and negotiate better conditions if needed.
Am I entitled to severance pay if I am dismissed as an expat?
Yes, expats are entitled to the same transition payment as other employees, and courts may award additional fair compensation if the employer acted in a seriously culpable manner.
What steps should I take if I believe my dismissal was unjust or unlawful?
Check whether your employer had a valid legal ground for dismissal, review any settlement agreement carefully, and consult a lawyer to assess your case and ensure your rights are protected.