Summary dismissal in The Netherlands occurs when an employee commits a serious offense, such as theft at work. According to the Dutch law, the employer may then immediately terminate the employment contract for urgent reasons. These reasons must be so serious that the employer cannot be expected to continue the employment relationship.

But what if the employee causes damage as a result? In that case, the employer’s lawyer can demand, among other things, fixed compensation.

What is fixed compensation?

In the case of normal dismissal, a notice period must normally be observed. If an employee does not respect this period, for example if they are dismissed for just cause, the employer can claim compensation equal to the salary for that period. The amount of compensation is therefore the gross salary from the date of dismissal until the date on which the employment contract would normally have ended if the notice period had been observed.

Example: you resign with immediate effect on August 7, but if the notice period had been respected, the employment contract (at the end of the month) could only have ended on October 1. The wages between these two dates are then the fixed compensation: the wages for the notice period that would normally have had to be observed.

Even if the employer dismisses the employee unjustly, the employee can claim this compensation through their lawyer. So:

• Wages for the notice period; and in addition:
• Transition compensation
• A fair compensation that the court may award

For example: if an employee has been employed for 17 years, the fixed compensation can amount to at least three months’ wages.

Please note: the subdistrict court may reduce this compensation, but only if there is a good reason for doing so. In addition, there is the transition payment and the fair compensation.

When should a lawyer request fixed compensation?

For all claims relating to summary dismissal, a request must be submitted to the subdistrict court within two months. This also applies to claims for fixed compensation. Only the transition payment has a term of three months.

According to Article 7:672(11) of the Dutch Civil Code, whoever is responsible for not complying with the notice period must compensate for the damage.

Does the employer want to recover additional damages, for example due to breach of contract during work? Then there must be intent or deliberate recklessness on the part of the employee. This is difficult to prove and is rarely awarded by the court.

Need help with dismissal or fixed compensation?

Contact our lawyer specializing in employment law and dismissal law in Amsterdam for legal advice on dismissal, termination, and fixed compensation.