'He's Not Meeting Targets, We Can Let Him Go, Right?' A Dutch Performance Dismissal Myth

The Myth: "Our sales rep in Amsterdam is consistently underperforming. We can just terminate their contract based on poor performance, right?"

David, a sales director for a fast-growing American tech company, was frustrated. Sanne, a sales executive in their Dutch office, had missed her targets for the second quarter in a row. In his experience, this was a clear-cut case for dismissal. He'd had a few informal chats with her, told her to “step it up,” and felt he had done his part. He instructed local HR to initiate termination proceedings, assuming a month's notice would suffice. He was about to learn a hard lesson in Dutch employment law.

The Reality: Dutch Law Demands a Formal Improvement Plan (Verbetertraject)

Unlike the “at-will” employment concept common in the United States, Dutch law is highly protective of employees. You cannot simply dismiss an employee for underperformance without following a strict, mandatory, and well-documented process. This process is known as a verbetertraject, or Performance Improvement Plan (PIP).

A Dutch court will not grant a dismissal for underperformance unless the employer can prove they did everything reasonably possible to help the employee improve. Simply stating that targets were missed is not nearly enough. The employer must demonstrate that:

1. The employee was clearly and timely informed about the specific areas of underperformance.
2. A formal, written PIP was implemented. This plan must be realistic, specify measurable goals, and provide a clear timeline for improvement (usually 3-6 months).
3. The employer provided concrete support. This includes offering coaching, training, or tools to help the employee meet the stated goals.
4. There were regular evaluation moments to track progress, which were documented in writing.

Without this robust, documented trail, a request to terminate the employment contract on the grounds of underperformance is almost certain to be rejected by a Dutch court, leaving the company with a non-performing employee and a damaged internal reputation.

The AI Clarity Moment

Before acting, imagine if David had simply turned to his legal copilot. He could have asked LawYours.AI: “What are the legal steps to dismiss an employee for underperformance in the Netherlands?”

Instantly, the AI would have bypassed the dangerous assumptions. It would have responded with a clear, actionable summary:

"Dismissal for underperformance in the Netherlands requires a formal Performance Improvement Plan ('verbetertraject'). Before you can proceed, you must document the underperformance, provide the employee with a written plan with clear, achievable goals, offer support and training, and conduct regular evaluations over a reasonable period (typically 3-6 months). Failure to complete this process will likely result in the dismissal being denied by a court. See Dutch Civil Code, Book 7, Article 669(3)(d)."

This single query would have saved David and his company thousands of euros in potential legal fees and severance negotiations, and prevented a major HR headache.

3 Simple Rules to Remember

• Document Everything: Informal chats are not enough. Keep a written record of all performance discussions, warnings, and feedback.
• Implement a Formal PIP: Never attempt a performance-based dismissal without first completing a structured, fair, and well-documented Performance Improvement Plan.
• Support, Don't Just Demand: A PIP is a two-way street. You must offer and provide genuine support, coaching, or training to help the employee succeed.

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.