When a business is transferred, employees benefit from strong protection under Dutch employment law. But does that mean dismissal is no longer an option?
In this episode of Littler Explains, we discuss a recent Dutch Supreme Court judgment that provides important guidance on dismissal after a TUPE transfer, and the role of ETO reasons (economic, technical or organisational grounds).
TUPE in the Netherlands: what you need to know
A transfer of undertaking (TUPE) occurs when an economic entity transfers to a new employer while retaining its identity. Employees automatically move to the new employer, with their terms and conditions intact.
As a starting point, Dutch law prohibits dismissal if the transfer itself is the reason for termination.
When is dismissal still possible?
There is an important exception: dismissal may be allowed if it is based on genuine economic, technical or organisational reasons.
In practice, this raises a key question for employers: when are these reasons truly independent from the transfer?
Supreme Court: drawing the line
In this episode, we explore how the Dutch Supreme Court addressed this question in a recent case involving a post-transfer reorganisation.
The ruling provides practical guidance on how to assess whether a dismissal is sufficiently independent from the transfer — a nuance that is highly relevant for employers managing integrations and restructurings.
Why this matters for employers
For employers dealing with TUPE transfers in the Netherlands, understanding this distinction is crucial. It determines when restructuring is permissible, and how dismissal decisions should be substantiated.
Listen to this episode on your preferred platform:
Spotify – Podbean
Copy Link
Share on LinkedIn
