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The Dutch Work and Security Act (Wet werk en zekerheid) will significantly change an important part of Dutch employment law. As from 1 July 2015, dismissal legislation will change. Below is a description of some of the main changes.

Under the current dismissal legislation, there are two ways to achieve the dismissal of an employee who does not agree to the termination of the employment relationship. Regardless of the ground for the dismissal, it is up to the employer to choose the route it prefers. The first route is through a procedure with the UWV, the second one via the subdistrict court.

The procedure with the UWV often costs more time and requires better file management, but the employer is in principle not obliged to pay a severance.

The procedure at the subdistrict court is quicker, but the employer will often have to pay compensation to the employee.

A dismissal for commercial reasons is usually done via the UWV.

In case of a dismissal for personal reasons (unsatisfactory performance, damaged working relationship) an employer will often choose for a termination through the subdistrict court.

Under the new dismissal legislation, an employer can no longer choose which procedure to follow. For every ground for dismissal, there are mandatory provisions determining whether it is a case for the UWV or the court.

Another important change is that in principle, a compensation, the transitional compensation, must always be paid when the employment agreement is terminated at the initiative of the employer, unless in case of a justified instant dismissal.

It is remarkable that the transitional compensation also has to be paid in case the employment agreement is terminated after two years of illness.

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