Page - Dismissal for Economic Reasons
Dismissal for Economic Reasons in the Netherlands – Legal Guidance for Expats
Are you an expat working in the Netherlands and facing dismissal due to restructuring or company downsizing? You are not alone — and you are not powerless. This page explains your legal rights, what to expect, and how our employment lawyers at Settlement-Agreement.nl can help you secure the best outcome.
On This Page:
- What is dismissal for economic reasons?
- When is an employer allowed to terminate your contract?
- What are your rights as an employee in the Netherlands?
- How much severance pay can you expect?
- Can you challenge the dismissal?
- Real-life case examples of expats we helped
- Checklist: 7 points to review carefully
- Contact options for a free legal review
What Is Dismissal for Economic Reasons?
Economic dismissal (bedrijfseconomisch ontslag) refers to the termination of employment due to business-related factors such as:
- Company reorganization
- Cost-cutting or downsizing
- Closure of departments or locations
- Financial difficulties
- Outsourcing or automation
In these cases, the dismissal is not about your performance, but about changes in the employer’s business operations.
When Can Your Employer Dismiss You for Business Reasons?
Under Dutch law, dismissal for economic reasons is only legal if specific conditions are met. The employer must:
✅ Apply for approval through the UWV (Employee Insurance Agency)
✅ Demonstrate clear financial or structural necessity
✅ Follow the “last in, first out” principle (afspiegelingsbeginsel)
✅ Attempt to reassign you within the organization
✅ Provide correct notice period and severance pay
If these steps are skipped or misused, the dismissal may be legally challenged.
Common Questions Expats Ask Us
We give clear answers and strong legal support to help you move forward confidently.
- “My role is being eliminated — is this legal?”
- “Do I have a right to severance or unemployment benefits?”
- “They offered me a settlement — should I sign?”
- “Will I lose my residence permit?”
- “Can I object to the decision or get compensation?”
What Are Your Rights as an Employee?
Even in economic dismissal, you have strong legal protections, including:
- Statutory notice period
- Transition compensation (severance pay)
- Right to challenge the dismissal in court
- Right to receive a written explanation and documents
- Potential WW (unemployment benefits) eligibility
- Continued legal stay in the Netherlands in many cases
You also have the right to independent legal advice — never sign anything without consulting our specialists.
Case Example: Julia from Germany
Julia worked for an international logistics company. She was told her team would be disbanded and received a termination agreement.
- We found out:
- Found that the employer had not followed proper procedure
- Negotiated an extra 4 months’ salary in severance
- Ensured her rights to unemployment benefits and a positive reference
- Protected her residence status during the transition
“You gave me clarity and fought for what I deserved. I couldn’t have done it alone.” – Julia Hamel.
Legal Support from our lawyers – Experts in Dutch Labour Law
- 15+ years of experience in Dutch employment law
- Specialists in economic redundancy and expat cases
- English-speaking legal team
- Fast review of settlement agreements
- Transparent, strategic, and personal approach
- First consultation is free and non-binding
We help you understand your options and negotiate the best outcome — legally, financially, and personally.
Checklist – 7 Crucial Points Before Accepting Dismissal
✅ Did your employer apply for dismissal via the UWV?
✅ Were you selected fairly (based on the seniority principle)?
✅ Did they offer you another role internally?
✅ Is the severance amount correct according to Dutch law?
✅ Do you understand the terms of the settlement agreement?
✅ Will this affect your residence permit or WW benefits?
✅ Has a legal professional reviewed the proposal?
If any of these are unclear or missing, get legal advice first.
Another Case: Miguel from Spain
Miguel worked in a multinational tech company. He was let go due to a merger and offered a low severance package.
- Kantoor X:
- Reviewed the situation and found flaws in the selection process
- Negotiated a €20,000 improvement in severance
- Ensured all legal and tax elements were correct
- Advised on timing and benefits eligibility
Don’t Sign Away Your Rights – Contact our lawyers
📞 Call us now for your free first consultation
📧 Email us your settlement offer for a no-obligation legal review
We protect expats from unfair or unclear dismissals — and help you move on with dignity and security.
✅ Facing dismissal due to restructuring or downsizing?
👉 Contact our – Employment Lawyers for Expats in the Netherlands
Phone +31 (0)20 6160 120 or mail us.
