There are fewer and fewer employees with a permanent contract. A permanent contract offers a certain security, but it does not mean that someone cannot be fired at all. There may be various reasons for dismissing someone with a permanent contract. This could, for example, be due to dysfunction. The Dutch government is also working on new legislation that could make it easier to dismiss someone with a permanent contract in the future. Read all about it in this article. There are fewer and fewer people with a permanent contract. Companies have become increasingly cautious about retaining people for a longer period of time. In 2002, no less than 75 percent of the working population had a permanent contract. Ten years later, that number had dropped to 69 percent. A total of 4.4 million people had a flexible contract in 2002. Ten years later, that number had increased by as much as ten percent. Particularly due to the economic crisis, companies have become increasingly cautious about offering employees a permanent contract. They want to be flexible so that they can adapt quickly and reduce costs when the economy is weak. Young people under the age of 35 are particularly affected by this measure. They are new to the labor market and do not easily receive a new contract. Only 40 percent of them have a permanent contract.
Being fired with a permanent contract because someone is not performing
When someone has a permanent contract, it does not automatically mean that that person cannot be fired. If someone appears not to be performing well, an employer can decide to dismiss someone after all. That cannot happen overnight. An employer must first build up a file that shows that someone has not been functioning properly for a longer period of time. This can be done, for example, by discussing that lack of performance in the periodic performance reviews. Another method is to send a warning letter stating why someone is not performing. An employer would always be wise to object to such a letter if he disagrees with the accusation. In this way, the employer will have to do better to demonstrate that someone is not performing.
When can someone with a permanent contract be fired?
There may also be other grounds for dismissal. For example, a company may decide to reorganize in order to cut costs. If the company can demonstrate that someone is no longer necessary, the employee can still be dismissed. If a company is moving and an employee does not want to move with it, this can also be a reason for dismissal. In that case, the employee is entitled to severance pay. This is based on the number of years of service. Furthermore, a reason for dismissal may be if someone is incapacitated for work for a long period of time and the employer cannot offer suitable work. Furthermore, an employee and employer can jointly decide to terminate a contract. A final reason for dismissal could be, for example, if someone steals or walks around drunk at work. In that case, someone must be summarily dismissed.
New layoff plans
In the future, the government wants to make it easier for employers to dismiss employees. This must now first be tested by the judge. In the future, the employer could simply dismiss the employee, but he would then be responsible for payment in the first period of unemployment. For example, when employees are dismissed, they receive financial compensation that can be used for training or to find a ban. There is also a lot of criticism of these plans, including from the trade union. They believe that this gives employers a lot of power.