In Dutch employment law, there is a big role for the termination agreement. It goes by the name termination agreement (because it terminates the employment relationship) or settlement agreement (because it settles a dispute between employer and employee).
An employer can suspend an employee if there are sufficient grounds for it. Usually, this is a prelude to the dismissal of the employee. During a suspension, an employer can for instance investigate whether there are grounds for instant dismissal. Alternatively, an employer can suspend an employee and submit a request to terminate the employment agreement at the Court.
Employee dismissals on the basis of company economic grounds occur relatively often. In this article, you can read about the important aspects of it.
Company economic grounds Dutch employment law includes a company economic ground for dismissal, that can be divided in several concrete situations:
Instant dismissal (also called summary dismissal) is an appealing topic in Dutch employment law. In the event of gross misconduct on behalf of the employee, the employer can “fire” the employee immediately and without severance compensation.