Dismissing an employee in the Netherlands: notice periods, transition payment and your options

Ending a contract in the Netherlands follows strict statutory steps. The notice period in the Netherlands depends on length of service, and most dismissals need prior approval. In addition, severance pay in the Netherlands usually means the statutory transition payment. This guide sets out the facts for foreign employers with remote staff.

Does Dutch dismissal law apply to foreign employers with remote staff?

Yes, in most cases. When an employee habitually works in the Netherlands, Dutch dismissal protection applies. Under the EU Rome I Regulation, a foreign choice of law cannot remove more favourable Dutch mandatory protection. Consequently, a remote employee at a Dutch home office keeps the Dutch notice period and procedure.

Still choosing a hiring model? Our NL employment law interactive guide compares entity, EOR and contractor routes.

What is the notice period in the Netherlands for employers?

The statutory employer notice period in the Netherlands runs from one to four months. It rises by one month for every five years of service. Unless you agree otherwise in writing, notice runs to the end of a calendar month. Employees, by contrast, give one month’s notice unless the contract sets a different term.

Length of service	Statutory employer notice
Less than 5 years	1 month
5 to 10 years	2 months
10 to 15 years	3 months
15 years or more	4 months

However, several rules adjust these terms. Only a collective labour agreement (CAO) can shorten the employer’s notice. A longer term must appear in the contract. If the employee’s notice exceeds one month, yours must be at least twice as long. Finally, after a UWV procedure, you may deduct its length if at least one month remains. The Business.gov.nl overview of notice periods explains the statutory terms.

How can you dismiss an employee in the Netherlands?

You can end a Dutch employment contract through three main routes. The right route depends on the reason and on whether the employee agrees. Without the required permit, court order or agreement, a dismissal is not legally valid. The employee can then ask the court to reverse it, and wages keep running.

• UWV permit: for economic reasons or after two years of illness. You must prove genuine grounds, fair selection and redeployment efforts.
• Subdistrict court: for personal reasons, such as poor performance, culpable conduct or a disrupted working relationship. A combination of grounds is also possible.
• Mutual consent: a written settlement agreement, without UWV or court approval. The employee may withdraw within 14 days, or 21 days if the agreement omits this right.

Summary dismissal for an urgent reason, such as gross misconduct, is a separate exception. Moreover, 20 or more economic dismissals within three months in one work area trigger collective rules. Our guide to redundancy and collective dismissal in the Netherlands covers those duties. The UWV guidance on redundancy or dismissal also explains when permission applies. However, choosing a route is a strategic question for tailored advice.

What severance pay applies in the Netherlands?

Severance pay in the Netherlands usually means the statutory transition payment, or transitievergoeding. Employees earn one third of their gross monthly salary for each year of service. Entitlement starts on the first day, even during probation. For 2026, the cap is €102,000 gross, or one annual salary if that is higher.

Partial years count pro rata, and the monthly salary includes holiday allowance plus certain bonuses and allowances. You owe the payment after dismissal via UWV or the court, or when you do not renew a contract. In contrast, no statutory payment applies on mutual consent or after seriously culpable conduct by the employee. TheDutch government’s calculation guidance (in Dutch) explains the formula.

When can you not dismiss an employee in the Netherlands?

Dutch law bans notice in several protected situations, even with a valid reason. For instance, you cannot give notice during the first two years of illness. The ban also covers pregnancy, maternity leave and the six weeks after return. Works council members, candidates and active union members enjoy similar protection. However, these bans do not apply during probation or in bankruptcy.

Offboarding remote staff at the end of a notice period in the Netherlands

A compliant exit for remote staff covers pay, paperwork and permits. Above all, the final settlement must include every statutory amount, including unused leave and accrued holiday allowance. Remote work also adds practical steps, because equipment and access sit outside your office.

• Confirm the end date against the correct notice period.
• Calculate final pay, unused leave, holiday allowance and any severance pay owed in the Netherlands.
• As a recognised sponsor, report the end of a highly skilled migrant’s employment to the IND within four weeks.
• Recover company equipment and close system access securely.

Moving talent on with clarity, compliance and trust

Talent movement includes the exit, not only the arrival. Octagon Professionals has supported international employers in the Netherlands since 1987. As a global enabler for talent movement, we help organisations hire, move and part with people lawfully.

Our HR experts support dismissal procedures, offboarding and final payroll, including as employer of record. Contact Octagon Professionals to plan a compliant exit.

Frequently asked questions

What is the notice period in the Netherlands?

In the Netherlands, employers give one month’s notice when service lasts under five years. The term then rises to two, three and four months at five, ten and fifteen years. Employees normally give one month. A collective labour agreement can shorten the employer’s term, while a written contract can lengthen it.

How much severance pay do you get in the Netherlands?

Most dismissed employees in the Netherlands receive the statutory transition payment. It equals one third of the gross monthly salary per year of service, calculated pro rata. Holiday allowance counts towards that salary. In 2026, the maximum is €102,000 gross, or a full annual salary when that is higher.

Is there a notice period during probation in the Netherlands?

No. During a valid probation period in the Netherlands, either side can end the contract immediately. The employer needs no notice, UWV permit or court order, and dismissal bans do not apply. However, a pro rata transition payment is still due, because entitlement begins on the first day.

Can a foreign company dismiss an employee in the Netherlands?

Yes, but Dutch dismissal law applies when the employee habitually works in the Netherlands. The company must use the correct route, observe statutory notice and pay any transition payment. A foreign choice-of-law clause cannot remove these mandatory protections. Without a Dutch entity, an employer of record can act as the legal employer.