'I Have a Good Reason, So I Can Fire Them, Right?' The Dutch Dossier Myth

The Myth: A good reason is all you need to dismiss an employee in the Netherlands.

It’s a logical assumption, especially for managers coming from 'at-will' employment systems. If an employee consistently fails to meet clear expectations, surely you have the right to let them go. The reason is valid, the facts are clear. End of story, right?

The Scenario: A Manager's Frustration

Meet David, a senior manager from the US, recently assigned to lead the Amsterdam office of 'Global Exports BV'. He's sharp, driven, and focused on results. One of his team members, let's call him Jan, is not. For three consecutive quarters, Jan has missed his sales targets by a wide margin. David has had several 'frank conversations' with Jan about his performance, telling him he needs to 'step it up'.

Frustrated with the lack of progress, David decides he's seen enough. The reason is obvious: sustained underperformance. He walks into the office of his HR business partner, Anouk, and says, "It's not working out with Jan. We have a clear and fair reason, so let's start the dismissal process. We need to let him go."

Anouk takes a deep breath. She knows this isn't going to be the simple conversation David expects.

The Reality: No Dossier, No Dismissal

Anouk patiently explains the Dutch legal reality. "David, I understand your frustration, and you're right about the performance issue. But where are the official written warnings? Where is the documented Performance Improvement Plan (PIP) with measurable goals? Where are the minutes from the evaluation meetings?"

David is confused. "We've talked about it multiple times. He knows he's underperforming. The numbers speak for themselves!"

This is the heart of the myth. In the Netherlands, a valid reason is only the starting point. To successfully dismiss an employee for underperformance, an employer must have a comprehensive, well-documented file—a 'dossier'. A Dutch judge will not just ask, "Did the employee underperform?" They will ask, "Did the employer do everything reasonably possible to help the employee improve, and can they prove it?"

Without this dossier, a request for dismissal will almost certainly be rejected by the courts, or the employer will be forced into a very expensive settlement to avoid a protracted legal battle. David’s 'frank conversations' have no legal weight. The lack of a paper trail means that from a legal standpoint, the company hasn't taken the required steps.

The AI Clarity Moment

Anouk knew this cultural and legal gap was a risk with international managers. She shows David how she could have clarified this in seconds. She opens her LawYours.AI copilot and types a simple question:

"Can I fire an employee in the Netherlands for poor performance based on clear sales data but without a formal improvement plan?"

Within moments, the AI provides a clear, source-backed answer:

*"Under Dutch law (specifically Dutch Civil Code, Book 7, Art. 7:669), dismissal for underperformance requires the employer to prove several things. Crucially, the employer must demonstrate that the employee was informed of the shortcomings in a timely manner and was given a genuine and sufficient opportunity to improve, typically through a formal Performance Improvement Plan (PIP). Simply having poor sales data is insufficient. Without a documented 'dossier' containing warnings and a PIP, a dismissal request submitted to the UWV or a Cantonal Court is highly likely to be rejected. The court may also grant the employee significant additional compensation ('billijke vergoeding') if it deems the employer's actions negligent."

David's face falls as he reads the clear explanation. He realizes his assumption has put the company in a difficult position: start a formal, documented PIP with a now-disengaged employee, or pay a premium to negotiate his exit.

3 Simple Rules to Remember

To avoid this common and costly trap, international managers in the Netherlands should operate under these principles:

1. Verbal is Informal, Written is Real: A conversation in the hallway or a casual 'check-in' does not count. Formal performance discussions must be documented, shared with the employee, and saved.
2. State the Problem, Offer the Solution: Never just criticize. A formal warning should always be paired with a clear, realistic, and time-bound plan for improvement (a PIP). Offer coaching, training, and regular feedback sessions.
3. Assume You'll Need to Prove It: From day one of a performance issue, build your dossier as if you will one day have to present it to a judge. Is it clear? Is it fair? Is it complete?

Operating in a new legal system is complex, but understanding core principles like the necessity of a dossier can save your business time, money, and significant legal headaches.

Disclaimer: This article describes a fictionalized scenario for illustrative and educational purposes only. It is not intended to be and should not be construed as legal advice. Any resemblance to actual events, entities, or individuals is purely coincidental.