In the spring of 2018 the Dutch government announced that, in 2019, the maximum period of 8 years during which the Dutch 30% tax ruling may apply would be reduced to 5 years. Anger rose in the expat community – understandably. Today the Dutch Prime Minister came with a snippet of good news softening the blow.
Upon termination of the employment contract, the employee may be entitled to a ‘transitional allowance’. The transitional allowance is intended to assist the employee in finding a new job after dismissal, for example through education.
When terminating an employment contract both the employee and employer need to respect a notice period. The notice period depends on the duration of the employment contract.
If the termination of the employment contract is based on the following grounds, the employer may request the court to terminate the employment contract:
Notice given with permission from the UWV If the termination of the employment contract is (i) based on economic grounds or (ii) occurs after a period of illness of more than two years, the employer will first have to obtain permission from the Employment Insurance Agency (UWV) to terminate the employment contract. Notice given without permission of the UWV is null and void.
There are different ways in which an employment contract may legally be terminated. One of these methods is termination based on reasonable grounds.
Both parties may terminate the employment contract with immediate effect for ‘urgent reasons’. The reason, or reasons, for the dismissal must be specified immediately.
An employer and employee may choose to include a probation period in an employment contract at the time that the contract is drawn up. The maximum probation period depends upon the duration of the employment contract.
Introduction: 8 Blogarticles in English on methods to terminate an employment contract Under Dutch Law there are various ways to terminate an employment contract. This blog provides an overview of six alternative methods by which an employment contract may legally be terminated or may come to an end: