Requirement to Provide Reasons for Dismissal in Amsterdam: When and How Must the Employer Justify?

# Requirement to Provide Reasons for Dismissal in Amsterdam: When and How Must the Employer Justify? Article 7:672(3) of the Dutch Civil Code (BW) requires employers in Amsterdam to provide concrete reasons for dismissal, such as business-economic circumstances in the thriving tech sector around the Zuidas, underperformance, or long-term illness (Article 7:669 BW). Without justification, the dismissal is null and void, as recently confirmed in cases before the District Court of Amsterdam. ## When Does the Duty to Provide Reasons Apply in Amsterdam? - Always in cases of employer-initiated dismissal, for example, in startups in Amsterdam Oost. - Not in cases of employee-initiated resignation or mutual termination via a real estate agent in De Pijp. - Exception: urgent reason (summary dismissal without notice period). ## How to Justify Dismissal Correctly for Amsterdam Employers? The dismissal letter must describe specific facts and avoid vague terms. In cases of underperformance: provide evidence of an improvement plan, such as coaching through local HR advisors in Amsterdam Centrum. In cases of reorganization due to the coronavirus crisis or real estate pressures in the housing market: specify the number of jobs affected, alternatives, and efforts for redeployment within the Greater Amsterdam region. ## Consequences of Failing to Provide Justification in Amsterdam Employees may request dissolution of the employment contract or fair compensation from the subdistrict court in Amsterdam North or South. The court assesses 'reasonableness and fairness' (Article 7:671a BW), with recent judgments imposing strict requirements for justification in the creative industry. ## For Employees in Amsterdam: Responding to Justification Immediately suspend the dismissal and prepare a defense for the District Court of Amsterdam. Request a hearing and an opportunity for improvement (Article 7:672(2) BW). In cases of incorrect justification: potential for redeployment in Amsterdam's dynamic labor market or compensation. Local trade unions such as FNV in Amsterdam offer free advice. Proper justification prevents costly proceedings before the Amsterdam subdistrict court and high legal costs. (248 words)