Almost a century ago, in 1928, the Olympic Games were held in Amsterdam. Although the Netherlands has not been particularly active when it comes to organizing this major event as it has not organized the Olympics since, Dutch lawmakers certainly have not taken a step back. Significant changes have been made to our employment laws, one of which could possibly be considered the most transformative—namely, the introduction of the “preventive dismissal assessment.”

Dutch dismissal laws during the time of the Amsterdam Olympics used to heavily prioritize freedom of contract. As is currently common in several countries, employers did not have to face many legal restrictions when deciding to dismiss an employee; they were merely required to take a certain notice period into account. After the termination of their employment contract, employees would be able to enforce their rights only by initiating legal proceedings.

In 1945 these principles changed with the introduction of the preventive dismissal assessment. From this point on, unilateral terminations by employers could occur only after prior, governmental review of whether the proposed dismissal is reasonable.

At the present time, the following conditions apply when an employee does not agree with their dismissal:

• Permission for dismissal from the Employee Insurance Agency (UWV): An employer must request permission from the Employee Insurance Agency if the dismissal is for economic reasons, such as bankruptcy or restructuring, or due to an employee's long-term (>2 years) incapacity to work. An objection cannot be filed directly against UWV's decision. Employers must turn to the sub-district court to start proceedings for termination of the employment contract.

• Permission for dismissal from the sub-district court: An employer must apply to the sub-district court if there are other reasons for dismissal, such as unsatisfactory performance or conflict. The court will check if all the relevant legal criteria have been met. An appeal can be filed directly against the sub-district court’s decision.

Without the required permission, a dismissal cannot be legally valid. In such cases, an employee can ask the sub-district court to undo the dismissal. The employment contract will continue to exist and wages must continue to be paid.

Overall, the nature of Dutch dismissal law is unique in a way that it is highly protective. Employers need a reasonable ground for dismissal and cannot unilaterally terminate the employment agreement without the prior consent of UWV or the sub-district court.

*Maria Ishaq is a legal intern with CLINT | Littler.