Doing Business in the Netherlands 2012 - American Chamber of ...

Doing Business in the Netherlands 2012
Furthermore a non-competition clause may become invalid if the
responsibilities ensuing from the employee’s position are substantially
amended in the course of employment.
14.3 Termination
14.3.1 Employment for an Indefinite Period
An employer must obtain prior written approval from the Dutch public
employment service UWV WERKbedrijf (UWV), formerly known as
“the Central Organization for Work and Income” (CWI), before it can
give a notice of termination of the employment contract. As an
exception to this general rule, the employer does not have to obtain
written approval to give notice of termination of an employment
contract from a Managing Director (see hereinafter).
The procedure for obtaining approval usually takes four to eight
weeks, depending on the nature of the case. This period excludes the
notice period to be taken into account after obtaining approval.
Refusals of requested approvals are not uncommon.
After obtaining approval from the UWV, the employer may terminate
the employment contract with due observance of the statutory or
agreed-upon notice period, unless there is a statutory prohibition
against giving notice (for instance, in case of illness or pregnancy).
Due to the employer having followed the UWV procedure, the
statutory (or agreed upon) notice period may be reduced by one month
as long as at least a one-month notice period remains.
With the exception of the dismissal of a Managing Director, dismissal
by an employer without the prior approval of the UWV is void.
14.3.2 Fixed-Term Employment
An employment contract entered into for a specified fixed term or for
a specific task or project in principle terminates by operation of law
upon expiration of the term or completion of the task or project,
without the need for a prior notice.
Baker & McKenzie 121