---
title: "Netherlands Employment Compliance 2026 | Day-One Rights"
description: "Netherlands compliance 2026: unfair dismissal protection from day one, 2-year sick pay at 70%, UWV dismissal permit, GDPR, and works council rights."
canonical: https://www.teamed.global/country-hiring-guides/netherlands/compliance-and-day-one-rights
---

Netherlands · Compliance child

Served by Teamed vetted partner-entity network in the Netherlands

# Netherlands *employment compliance* in 2026

Dutch law protects employees from unfair dismissal from day one. No qualifying period applies. Before you can dismiss for business or performance reasons, you need prior approval from the UWV (the Dutch labour authority) or a court.

Last reviewed 13 June 2026 · Netherlands guide

![Cyclists crossing a canal bridge in Amsterdam with historic canal houses behind them.](/images/country-guides/netherlands-compliance-and-day-one-rights.webp)

Illustration · Amsterdam, Netherlands

Answer.cite this

Dutch law protects employees from unfair dismissal from day one. There is no qualifying period.

Sick employees cannot be dismissed for up to 24 months. The employer must keep paying at least 70% of salary throughout.

When you do have grounds to dismiss, you need prior authorisation. Economic redundancies go through the UWV. Dismissal for performance issues goes through a court (kantonrechter). The UWV route takes around 28 days for unchallenged cases.

![A person reading a Dutch employment contract at a desk.](/images/country-guides/netherlands-compliance-and-day-one-rights-polaroid-1.webp)

In writing

## The Dutch dismissal approval system: UWV and the courts

You cannot simply give notice and dismiss a Dutch employee. You need prior approval first.

Economic or business-driven dismissals go through the UWV, the Dutch Employee Insurance Agency. Dismissals for personal reasons (performance, conduct, incompatibility) go through the district court (kantonrechter). Both routes require a written, substantiated case before any notice is served.

No self-help dismissal in the Netherlands

Dismissing a Dutch employee without UWV permission or court approval is a serious error. The employee can have the dismissal annulled or claim fair compensation (billijke vergoeding) on top of the transition payment. There is no fixed cap on fair compensation; courts award it based on the severity of the employer's fault.

| Dismissal ground | Route | Approx. timeline |
| --- | --- | --- |
| Economic (redundancy, reorganisation) | UWV application | **28 days target (unchallenged)** |
| Long-term disability (2+ years sick) | UWV application | **28 days target (unchallenged)** |
| Poor performance, conduct, breakdown of trust | Kantonrechter (district court) | Several weeks to months |
| Mutual agreement (beëindigingsovereenkomst) | Written settlement | No prior approval needed |
| During probation | No approval needed | Immediate (no notice required) |

Collective redundancies of 20 or more employees within 90 days trigger additional obligations under the [Wet melding collectief ontslag (WMCO)](https://business.gov.nl/regulations/collective-redundancies/). The employer must notify both the UWV and the relevant trade unions. A 30 days waiting period then applies before dismissal applications can be filed.

1. Confirm OR consultation is not required If the business or affected team has an Ondernemingsraad, check whether the planned decision needs OR consent or advice before any step is taken. A decision made without required OR consent can be challenged and reversed.
2. Establish a recognised dismissal ground Dutch law operates through a closed list of valid grounds. Document the ground thoroughly before approaching the UWV or the kantonrechter. Dismissal for a ground outside the statutory list exposes the employer to annulment and uncapped fair compensation.
3. File with UWV or petition the kantonrechter Economic redundancies and long-term disability cases go through a UWV permit application. Performance, conduct, and relationship-breakdown dismissals go to the district court. Both routes require a written, evidence-backed submission before any notice is served.
4. Manage the sick-pay and reintegration obligation in parallel A sick employee cannot be dismissed during the first 24 months of illness. The employer must pay at least 70% of salary and follow the Poortwachter reintegration protocol throughout. Skipping reintegration steps can cause UWV to refuse a permit even after the full period has passed.
5. Serve notice and pay the transition payment Once approval is granted, serve notice within the permitted window or the permit lapses. Calculate and disburse the transitievergoeding for every dismissed employee. The payment is owed from the first day of employment and is capped at €102,000 in 2026.
6. Check GDPR and works council data obligations on exit Employee personal data must be handled in line with GDPR and the UAVG on termination, including responding to any subject access request within the statutory period. Any new monitoring or HR system introduced as part of a restructure requires OR co-determination before it goes live.

## Unfair dismissal in the Netherlands: protection from day one

Dutch law does not impose a qualifying service period for unfair dismissal protection.

From the first day of employment, a Dutch employee can challenge a dismissal that lacks proper grounds or procedure. This is fundamentally different from the UK, where a qualifying period of months applies.

Dutch unfair dismissal law operates through a closed system of valid grounds (the 'gesloten ontslagstelsel'). An employer cannot dismiss for any reason that falls outside the eight recognised grounds set out in [Burgerlijk Wetboek art. 7:669](https://business.gov.nl/regulations/dismissal-procedures/). The main recognised grounds are:

- Economic reasons (business reorganisation, loss of work)
- Long-term incapacity (after the 2-year sick pay period)
- Frequent absenteeism causing operational disruption (with medical evidence)
- Dysfunction or poor performance (documented, with improvement opportunity given)
- Culpable conduct or omission by the employee
- Conscientious objection to a task that cannot be accommodated
- Breakdown of the employment relationship (verstoring)
- Other grounds, if dismissal cannot reasonably be demanded otherwise

Where the dismissal route was unlawful or the grounds were not met, the employee can apply to the court for reinstatement or fair compensation (billijke vergoeding). Fair compensation has no fixed ceiling; courts assess it on the facts, including the seriousness of the employer's conduct.

### Transition payment from day one

Every employee dismissed by the employer (or whose fixed-term contract is not renewed) is entitled to a transition payment (transitievergoeding). There is no minimum service threshold. The payment accrues from the first working day. The maximum transition payment in 2026 is €102,000.

## Netherlands discrimination law: protected from day one

Discrimination at work is prohibited from the start of the hiring process. No qualifying period applies.

Dutch anti-discrimination law covers recruitment, terms of employment, promotion, and dismissal. Both direct and indirect discrimination are prohibited.

The primary source is the [Algemene wet gelijke behandeling (AWGB)](https://wetten.overheid.nl/BWBR0006502) together with a set of specific acts covering particular grounds. Protected characteristics under Dutch law include:

- Religion, belief, political conviction
- Race, national or ethnic origin
- Sex (including pregnancy and maternity)
- Sexual orientation
- Civil status
- Disability or chronic illness
- Age
- Nationality (within limits set by EU law)

### How Dutch discrimination law is enforced

- **No qualifying period.** Protection applies from the job advertisement stage through to post-termination references.
- **No fixed compensation cap.** Courts award compensation based on the nature of the discrimination and the harm caused.
- **College voor de Rechten van de Mens.** The Netherlands Institute for Human Rights can investigate complaints and issue non-binding opinions. Employees may also bring claims directly before the courts.
- **Burden of proof.** Once an employee provides facts that suggest discrimination, the burden shifts to the employer to prove the treatment was not discriminatory.

Dutch employment contracts and HR processes need to be auditable against all protected grounds. Recruitment criteria, performance benchmarks, and redundancy selection matrices all fall within scope. Teamed's standard onboarding procedures build this in from day one.

## Whistleblowing protections in the Netherlands

The Netherlands transposed the EU Whistleblowing Directive through the Wet bescherming klokkenluiders, which came into force on 18 February 2023.

Employees who report genuine wrongdoing are protected from retaliation. The protection applies from the moment a report is made.

The [Wet bescherming klokkenluiders (Wbk)](https://www.government.nl/topics/whistleblowing) replaced the earlier Huis voor Klokkenluiders Act and extended the scope of protected disclosures in line with the EU Directive.

Key features of the Dutch whistleblowing framework:

- **Internal reporting channel required.** Employers with 50 or more employees must establish and maintain a secure internal reporting channel. Smaller employers working in certain sectors (financial services, aviation, nuclear energy) also have this obligation.
- **Scope of protected disclosures.** Reports relating to violations of EU law, infringements of Dutch law, or serious irregularities in the public interest are all covered. The scope is broad and extends beyond criminal wrongdoing.
- **No qualifying period.** Protection applies from the date of the report, regardless of how long the employee has worked for the employer.
- **Presumption of retaliation.** Where an employee suffers a detriment after making a report, the burden is on the employer to show the treatment was not connected to the disclosure.
- **Huis voor Klokkenluiders.** The House for Whistleblowers is the independent national authority that can investigate reports and assist employees.

Retaliation against a whistleblower can result in the dismissal being annulled and a claim for damages. The protection covers not only employees but also self-employed persons, contractors, trainees, and former employees.

## Employee data protection in the Netherlands

The Netherlands is an EU member state. Employee data is personal data regulated by the GDPR and the Dutch Uitvoeringswet AVG (UAVG).

The Autoriteit Persoonsgegevens (AP) is the national supervisory authority. It can impose significant fines for breaches.

Practical obligations for Dutch employers:

- **Lawful basis.** Most employment data processing relies on contractual necessity or legitimate interest. Consent is generally not the appropriate basis for processing data that employees cannot freely refuse.
- **Privacy notice.** Employees must be informed what data is processed, why, how long it is kept, and their rights. This must be provided at hire and updated when processing changes.
- **Subject access requests (SARs).** Employees can request a copy of all personal data held about them. The employer must respond within 1 month (extendable to 3 months for large or multi-system requests).
- **Data breach notification.** A breach likely to result in risk to individuals must be reported to the AP within 72 hours of discovery. High-risk breaches must also be reported directly to the affected employees.
- **International transfers.** Data flowing from the Netherlands to countries outside the EU and EEA requires an adequacy decision, standard contractual clauses (SCCs), or another approved safeguard. Data sent to the US requires SCCs or binding corporate rules.
- **Works council involvement.** The Works Council (Ondernemingsraad) has co-determination rights over any new employee monitoring or personnel tracking systems. Introducing new HR software or monitoring tools without OR approval can be challenged.

For non-EU businesses employing through Teamed in the Netherlands: employee data flowing from Teamed's Netherlands partner entity to a non-EU parent must be covered by SCCs or another safeguard. Teamed provides the required data processing agreement as part of the EOR arrangement.

## Works councils and worker representation in the Netherlands

Dutch law requires employers with 50 or more employees to establish a works council (Ondernemingsraad, or OR).

The OR has legally binding co-determination rights over a wide range of employment and business decisions. This is one of the most far-reaching worker-representation systems in Europe.

The [Wet op de ondernemingsraden (WOR)](https://wetten.overheid.nl/BWBR0002747) governs the works council. Its rights fall into three categories:

- **Right of consent (instemmingsrecht).** The employer must obtain OR approval for decisions on working hours, remuneration systems, performance appraisal, absence and reintegration policy, monitoring of employees, and any significant change to pension arrangements. Without OR consent, such decisions are not valid.
- **Right of advice (adviesrecht).** Major business decisions such as significant restructurings, mergers, acquisitions, and large outsourcing arrangements require the employer to seek the OR's advice before a final decision is taken. If the employer deviates from a negative OR opinion, it must give reasons and allow a one-month appeal period.
- **Right to information.** The OR is entitled to regular financial and strategic information about the business and can request additional data relevant to its tasks.

### Trade unions

Netherlands collective bargaining takes place through sector-level collective agreements (collectieve arbeidsovereenkomsten, or CAO). Many industries have a CAO that sets minimum pay, leave entitlements, and other terms above the legal floor. Where a CAO applies to your sector, it may override contract terms that fall below the CAO minimum.

### TUPE equivalent: the business transfer regime

The EU Acquired Rights Directive is implemented in Dutch law through [Burgerlijk Wetboek art. 7:662-7:666](https://business.gov.nl/regulations/dismissal-procedures/). When a business or part of a business transfers to a new employer, employees transfer automatically with their existing terms and continuity of service. Switching EOR providers in the Netherlands is a service-provision change and this regime applies. Teamed handles the employee information and consultation requirements as part of the transfer process.

## How does Teamed handle Netherlands employment compliance for you?

Teamed becomes your legal [employer of record](/lp/employer-of-record) in the Netherlands for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

The full Dutch employment law stack, including UWV and court-route procedures, runs on **one platform**.

**Real HR and legal experts** manage your Netherlands hires, from the first employment contract through every payroll run and sick-leave reintegration process. **An actual person**, not a chatbot or pooled queue, handles your account. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice.

Teamed navigates the UWV and kantonrechter routes so you do not have to build in-house Dutch employment law capability. The 24 months sick pay obligation, the OR co-determination requirements, and the transitievergoeding calculation are all handled as part of the service. Start from the Netherlands hiring overview. Each child guide covers one layer of Dutch employment law.

Key sources: [Business.gov.nl dismissal procedures](https://business.gov.nl/regulations/dismissal-procedures/), [Business.gov.nl transition payment](https://business.gov.nl/regulations/transition-payment/), and [Business.gov.nl sick pay](https://business.gov.nl/regulations/sick-pay/).

## Frequently asked questions

Does Dutch employment law have a qualifying period for unfair dismissal protection?

No. Dutch law protects employees from unfair dismissal from their first day of work. There is no qualifying service period. An employer cannot dismiss for an unrecognised ground at any point in the employment, and the employee can challenge a dismissal that lacks valid grounds regardless of tenure.

When do I need UWV permission to dismiss a Dutch employee?

You need UWV permission for economic redundancies (business reorganisation, loss of work) and for dismissals due to long-term incapacity (after the 24 months sick pay period). Performance, conduct, and relationship-breakdown dismissals go through the district court (kantonrechter) instead. Dismissal by mutual written agreement needs neither route.

How long does an employer have to pay sick pay in the Netherlands?

Dutch law requires the employer to continue paying at least 70% of the employee's salary for up to 24 months of illness. Alongside the pay obligation, the employer must follow the Poortwachter reintegration protocol. Failing to follow reintegration steps can result in UWV rejecting the dismissal permit even after the full period has passed.

What is the transition payment (transitievergoeding) and who is entitled to it?

The transition payment is the Dutch severance entitlement. It is owed to every employee whose employment is ended by the employer, including at the end of a fixed-term contract that is not renewed. There is no minimum service threshold. The payment accrues from the first day of employment. The statutory cap in 2026 is €102,000.

What is the works council (Ondernemingsraad) and when does it apply?

The Ondernemingsraad (OR) is a statutory employee representation body required for employers with 20 or more employees in the Netherlands. It has binding co-determination rights over HR policies, monitoring systems, remuneration structures, and pension arrangements. It also has the right to advise on major restructurings before a final decision is taken. Decisions made without required OR consent can be challenged and reversed.

Teamed Legal Operations

The Netherlands has one of the most procedurally demanding dismissal systems in Europe. Employers cannot simply decide to end employment and serve notice. The UWV or court step is not a formality. It is a genuine approval gate, and the grounds have to be substantiated.

A note from Tom Price-Daniel

Dutch law gives employees unfair dismissal protection from their first working day. There is no qualifying period.  
The sick pay obligation runs for 24 months. The transition payment cap is €102,000. The UWV approval step is real, not a rubber stamp.  
Get the compliance layer right from day one. Talk to a Teamed expert.

Tom Price-Daniel · Co-founder, Teamed

## Related Netherlands guides

- Hiring in the Netherlands, overviewparent
- [Netherlands termination and severance](/country-hiring-guides/netherlands/termination-and-severance)sibling
- [Netherlands working time and leave](/country-hiring-guides/netherlands/working-time-and-leave)sibling
- [Netherlands permanent establishment risk](/country-hiring-guides/netherlands/permanent-establishment-risk)sibling
- [Employer of Record overview](/lp/employer-of-record)core
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with Business.gov.nl and the Belastingdienst for the Netherlands, or speak to a qualified professional, before relying on any specific framework.