Netherlands: Unfair/ Wrongful Dismissal

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Quarterly Insights Q3 2026: Netherlands Employment Law
The Dutch government has introduced significant changes to employment law through its 2026 Budget Day proposals, including postponing unemployment benefit reductions and delaying the abolition of transition payment compensation. Meanwhile, the More Security for Flexible Workers Act brings sweeping reforms to fixed-term contracts, on-call arrangements, and temporary agency work, fundamentally reshaping how employers engage flexible workers in the Netherlands.
Netherlands Employment
AO
A&O Shearman
Article
Proposed Withdrawal Of Long-term Illness Compensation: Will Dormant Contracts Return?
The Dutch government has proposed a complete withdrawal of the transition payment compensation scheme for employers, reversing its original plan to merely restrict it to small employers. This significant policy shift raises critical questions about the future of dormant employment contracts and the legal obligations of employers when terminating employees after long-term illness, particularly in light of the landmark Xella ruling.
Netherlands Employment
LL
Loyens & Loeff
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