There is no at-will employment in Europe: what US employers need to know before hiring

Most US employers work with at will employment. In most of Europe, however, a dismissal needs a valid reason and a set procedure and the at will employment in Europe doesn’t work. It often needs a payment set by law, too. This guide compares four countries, so you can price the people risk before signing.

Why is there no at will employment in Europe?

European law starts from the opposite principle: a dismissal needs a justification. Article 30 of the EU Charter of Fundamental Rights protects every worker against unjustified dismissal. National laws then set the reason, the procedure and the payment. Consequently, at will employment in Europe has no direct equivalent.

In the US, by contrast, every state except Montana presumes employment at will. Unlike the other at will employment states, Montana requires good cause once probation ends. Elsewhere, wrongful termination claims rest mainly on discrimination, retaliation or breach of contract.

How does dismissal in the Netherlands work?

Dismissal in the Netherlands needs outside approval when the employee does not agree. The Employee Insurance Agency (UWV) decides economic and long-term illness cases. A subdistrict court decides the rest, such as poor performance. In addition, a dismissal through either route triggers a statutory transition payment.

The transition payment applies from the first day of employment. It equals one third of monthly salary per year of service. For 2026, the cap is €102,000, or one annual salary if higher. Our transitievergoeding 2026 guide explains the calculation.

Many exits therefore end in a written settlement agreement instead. Even then, the employee can withdraw within 14 days. Statutory notice adds one to four months. Our guide to dismissing an employee in the Netherlands covers each route.

How do Germany, France and the UK compare with at will employment in Europe

At will employment in Europe isn’t allowed, but the thresholds differ. Germany protects most employees after six months. France requires a real and serious cause after the trial period. UK protection starts after two years, or six months from 2027. The table also shows notice periods in Europe.

Country	Reason needed?	Procedure	Statutory severance	Employer notice
United States	No, except in Montana after probation	None for individual dismissals under federal law	None under federal law	None under federal law
Netherlands	Yes, from day one, outside probation	UWV permit or court decision, unless the employee agrees in writing	Transition payment from day one	1 to 4 months
Germany	Yes, after six months, where more than ten employees work	Written notice, after hearing any works council	None in general; settlements are common	4 weeks to 7 months
France	Yes, a real and serious cause, after the trial period	Pre-dismissal interview, then a letter stating the reason	After 8 months: a quarter of monthly salary per year, a third after 10 years	1 to 2 months after 6 months’ service
United Kingdom	Yes, after two years; six months from 1 January 2027	A fair reason and a fair procedure	Redundancy pay only, after two years	1 to 12 weeks

In Germany, the Kündigungsschutzgesetz requires a reason linked to the person, their conduct or urgent business needs. In France, the official dismissal procedure sets minimum gaps before and after the interview. Meanwhile, the UK government’s unfair dismissal factsheet sets out the 2027 changes.

What does this mean for a deal model and for integration plans?

In cross border M&A, these rules belong in the deal model, because protections do not end at closing. In a share deal, the employer stays the same, so every contract continues. When a business or part of it transfers, EU rules move its employees to the buyer on their existing terms.

Moreover, the transfer itself is not a lawful reason to dismiss. German law makes such a dismissal void, and UK TUPE rules bar redundancies made just because of the transfer. In the Netherlands, a works council must advise on an intended change of control, including a majority share sale. It must do so while its advice can still shape the decision. Therefore, build these items into your post merger integration plan:

• Notice and statutory severance for each country.
• Time for UWV, court or works council steps.
• Collective rules for 20 or more redundancies, such as Dutch collective dismissal and UK consultation.

Which roles and situations need advice before anyone is told?

Some employees carry extra protection, and some steps must come before any announcement. A conversation started too early can make a dismissal invalid or more expensive. So take advice before anyone is told in these situations:

• Employees on sick leave, as Dutch law bans notice during the first two years of illness.
• Pregnant employees and those on maternity leave. In Germany, dismissal needs a state authority’s exceptional approval.
• Works council members and staff representatives. France requires labor inspector authorization.
• Severely disabled employees in Germany, who need prior consent from the Integrationsamt.
• UK whistleblowers and trade union members.
• Any plan for 20 or more redundancies in the Netherlands or the UK.

Expanding from the US to Europe with clarity, compliance and trust

Moving talent across borders works best when compliance comes first. Since 1987, Octagon Professionals has helped international organizations enter Europe and grow there. Today, we support employers in the Netherlands, Germany, France, Italy, Cyprus and the UK.

Our HR experts reduce the risk of invalid dismissals, missed works council steps and unplanned severance costs. As employer of record, we handle contracts, payroll and local obligations with full transparency. Meanwhile, you keep full control over salaries, benefits and daily work. We take on the complexity so you can focus on growth. Contact Octagon Professionals to price the people risk before you sign.

Frequently asked questions

Can you fire an employee at will in Europe?

Generally, no. After probation, most European countries require a valid reason, a fair procedure and notice. Some also require outside approval or a payment set by law. A Dutch employer, for instance, needs a UWV permit or a court decision unless the employee agrees in writing.

Is severance mandatory in the Netherlands?

In most cases, yes. When a Dutch employer dismisses someone or does not renew a contract, a statutory transition payment is due. It builds up from day one at one third of monthly salary per year. The 2026 cap is €102,000, or a full annual salary if higher. Mutual consent and seriously culpable conduct are exceptions.

Do probation periods work like at-will employment?

Only partly. Dutch and French employers can end a valid probation without the usual dismissal procedure. Even so, a Dutch employee still receives a pro rata transition payment. In Germany, two weeks’ notice applies during probation of up to six months. From January 2027, UK protection starts at six months, even during probation.