Can you be dismissed with a permanent contract in the Netherlands?

“Kan je ontslagen worden met een vast contract” means: yes, dismissal is possible, but an employer cannot simply end a permanent contract at will. Dutch dismissal protection requires a valid legal ground and a correct route via the UWV, the subdistrict court, or a mutual termination agreement. Which path applies depends on the reason for dismissal and your circumstances. Below you will find when dismissal is possible, what the process looks like, and how outplacement can support your next step.

When can you be dismissed with a permanent contract?

Can you be dismissed with a permanent contract? Only if the employer has a “reasonable ground” under Dutch civil law. Common grounds include economic reasons (structural loss of work), underperformance, culpable conduct, a seriously disturbed employment relationship, or long-term incapacity for work. The employer must substantiate the ground with facts and documentation.

In many cases, redeployment is a key requirement. This means the employer must genuinely assess whether you can be placed in another suitable role within a reasonable period, potentially with training. If redeployment is not possible or not reasonable, termination may become an option.

In practice, employers and employees often explore alternatives first: modified duties, an internal move, or support towards new employment. That “work-to-work” approach can be part of an outplacement programme, especially when it becomes clear that returning to the original role is unrealistic.

• There must be a legal ground for dismissal (for example, economic reasons or underperformance).
• The employer must prove the ground with a solid file and documentation.
• Redeployment into suitable work must be seriously explored.
• The correct route must be followed: UWV, court, or a mutual agreement (VSO).

Which dismissal routes apply with a permanent contract?

Can you be dismissed with a permanent contract without a formal route? No. Broadly, there are three routes. For economic dismissals and termination after long-term incapacity, employers typically apply to the UWV. For personal grounds such as underperformance or a disturbed relationship, the subdistrict court is usually involved. A third option is a mutual termination agreement, the settlement agreement (vaststellingsovereenkomst).

The differences are not only legal but also practical. UWV procedures focus strongly on economic substantiation and redeployment efforts. Court procedures often focus on the personnel file: performance reviews, an improvement plan, warnings, and whether the employer did enough to preserve employment.

A settlement agreement is not a “shortcut” but a contract with conditions: end date, garden leave, compensation, and support measures. For unemployment benefits, it is important that the agreement clearly states the employer initiated the termination and that there is no urgent employee fault; this aligns with how dismissal situations are assessed in practice.

• UWV route: mainly for economic reasons and long-term incapacity.
• Court route: mainly for underperformance, culpability, or a disturbed relationship.
• Settlement agreement (VSO): mutual termination with negotiated conditions.
• Always relevant: redeployment assessment and proper documentation.

Your rights when a permanent contract ends

Can you be dismissed with a permanent contract and still have rights? Yes. If the employment ends at the employer’s initiative or after a formal procedure, you will often be entitled to a transition payment (transitievergoeding). This payment is intended as compensation and to support your move to new work. Exceptions can apply, for example in cases of severe employee culpability.

Notice periods also matter. When the employer gives notice, statutory or contractual notice periods apply depending on length of service. In formal procedures, the timing can differ from a settlement agreement where the end date is negotiated. Understanding the notice period rules for permanent contracts helps you avoid income gaps and supports correct alignment with unemployment benefits.

You are also entitled to a correct final settlement, such as payout of unused leave and outstanding salary components. In settlement negotiations, it can be sensible to include employability support, such as outplacement support after dismissal, as part of a careful exit arrangement.

• Potential entitlement to a transition payment (unless an exception applies).
• Notice period and end date must be legally correct.
• Final settlement: unused leave, salary components, and expenses.
• In a VSO: clear wording that supports benefit eligibility and additional agreements.

A practical example and the role of outplacement

Can you be dismissed with a permanent contract because your role disappears? Imagine your employer reorganises and reduces your department. The employer must show that roles structurally disappear, assess redeployment, and often obtain UWV permission. In this situation, structured support towards new work can significantly improve both speed and control, especially if internal options are limited.

Outplacement can function as a practical bridge between “the decision” and “the next step”. A programme can help you sharpen your market profile, position your skills, and organise an effective job search. It can also make a difficult process more humane by creating forward momentum while legal and organisational steps take place.

If you want clarity on procedure and timing, it helps to understand what an employer’s dismissal procedure looks like. Combine that insight with concrete actions: collect documents, confirm agreements in writing, and activate your network. This helps you keep control even when the final outcome is not yet fixed.

• Ask for the dismissal ground and evidence, and check whether redeployment was genuinely explored.
• Keep records: reviews, emails, meeting notes, and job descriptions.
• Discuss employability support as part of the package, especially in a VSO.
• Create a realistic search plan: profile, target sectors, networking, and application rhythm.