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David VanAssche
The Employment MinefieldUpdated March 202629 min read

The Dutch Verbetertraject (Performance Improvement Process) -- What Courts Actually Require

80% of Dutch performance terminations fail in court because employers use American-style PIPs instead of genuine improvement trajectories.

Financial exposure: EUR 40K–120K

TL;DR
Your 30-60-90 day American PIP will fail in a Dutch court. The verbetertraject must be a genuine 3–12 month rehabilitation program with coaching, SMART goals, and documented support — not a managed exit. Courts reject ~80% of performance terminations, costing EUR 40K–120K per failed attempt.
The American Assumption
You can use a standard American PIP (30-60-90 days) to manage out an underperforming employee in the Netherlands.
The Dutch Reality
Dutch courts reject approximately 80% of performance-based termination requests. The verbetertraject must be a genuine 3-12 month rehabilitation program with SMART goals, regular evaluations, active coaching, and documented support -- not a managed exit.
The Consequence
A failed performance termination costs EUR 40,000-120,000 when you add up the verbetertraject, legal fees, and the inflated settlement you pay after the court says no.
3-12 months
Required trajectory duration
Minimum 3 months for professional roles; 6-12 months for senior or long-tenured employees
~80%
Court rejection rate
Practitioners estimate approximately 80% of d-ground termination requests are rejected
EUR 40K-120K
Cost of a failed attempt
Verbetertraject costs, legal fees, and inflated post-rejection settlement

1. Legal Basis: Article 7:669 lid 3 sub d BW

The Statute

Article 7:669 lid 3 sub d of the Burgerlijk Wetboek (Dutch Civil Code) provides that an employer may terminate an employment agreement on the ground of disfunctioneren (underperformance/unsuitability) when:

  1. The employee is unsuitable for performing the agreed work;
  2. The unsuitability is not caused by illness or disability of the employee;
  3. The employer has informed the employee in a timely manner about the unsuitability;
  4. The employee has been given a sufficient opportunity to improve their performance; and
  5. The unsuitability is not the result of insufficient care by the employer for training or working conditions.

Additionally, the general requirement of Article 7:669 lid 1 BW applies: the employer must demonstrate that redeployment (herplaatsing) in another suitable position is not possible or not reasonable.

Key Legal Principle

The statute deliberately uses the open phrase "sufficient opportunity to improve" without specifying what this means in practice. This is where case law — particularly the Hoge Raad's 2019 Ecofys decision — fills in the gaps. The result is a flexible but demanding standard that courts apply rigorously.

The Closed System of Dismissal Grounds

Unlike US at-will employment, Dutch law operates a closed system ("gesloten ontslagstelsel") of dismissal grounds enumerated in Article 7:669 lid 3 sub a through i. An employer cannot mix and match — each ground must be independently met. The i-ground (cumulative ground, introduced in 2020) allows courts to combine nearly-met grounds, but even then the employer pays up to 1.5x the transitievergoeding as additional compensation.


2. What "Reasonable Opportunity" Means in Case Law

The Ecofys Framework (ECLI:NL:HR:2019:933)

On 14 June 2019, the Hoge Raad delivered its landmark ruling in the Ecofys case, establishing that what constitutes a "serious and real" opportunity to improve depends on the circumstances of the case. The court identified eight guiding factors (gezichtspunten):

#FactorPractical Meaning
1Nature, content, and level of the positionSenior/complex roles may warrant more time and support; simple/unskilled roles may need less
2Employee's training and experienceA highly educated professional is expected to show more self-insight; a junior employee may need more hand-holding
3Nature and severity of the underperformancePersistent, fundamental failures differ from minor shortcomings
4Duration of underperformance since notificationHow long the employer tolerated the situation before acting
5Length of the employment relationshipLong-tenured employees generally receive more time and support
6Previous improvement attemptsWhat was tried before? Did earlier efforts fail?
7Employee's openness to feedback and commitment to improvementAn employee who denies all problems may be treated differently from one who engages constructively
8Nature and size of the employer's businessA large multinational can provide more support (coaching, training, alternative roles) than a five-person startup

Duration: How Long Is Enough?

There is no statutory minimum duration. Courts assess reasonableness based on all circumstances. However, case law trends show:

DurationWhen Courts Have Accepted ItWhen Courts Have Rejected It
6 weeks to 2 monthsSimple, unskilled work; clear, objective performance metrics; employee demonstrably not improving despite supportAlmost always rejected for skilled/professional roles; especially problematic with long-tenured employees
3 monthsMid-level roles with clear metrics; short employment history; employee showing no engagementOften insufficient for senior roles or employees with 5+ years of service
4-6 monthsThe "sweet spot" for most professional roles; standard recommendation by Dutch employment lawyersMay be insufficient if the role is complex, the employee has very long tenure (15+ years), or the employer's own guidance was inadequate
6-12 monthsSenior/management roles; long-tenured employees; complex performance issues involving behavioral changeRarely rejected as "too short" at this length, but courts may still find the quality of the trajectory insufficient

Critical insight: Duration alone does not make a verbetertraject adequate. A six-month trajectory with vague goals, no coaching, and sparse documentation will be rejected just as readily as a two-month trajectory.

Case Law on Duration

  • Gerechtshof Arnhem-Leeuwarden (3 February 2016): A 6-month trajectory (3 months + 3-month extension based on partial improvement) was accepted as adequate for an employee with 23 years of service.
  • Rechtbank Rotterdam (ECLI:NL:RBROT:2025:5440): A 4.5-month trajectory (July to November 2024) was accepted for a Manager Operations with approximately 1 year of service, where the employee was given regular evaluations and clear improvement areas.
  • Rechtbank Midden-Nederland (ECLI:NL:RBMNE:2024:1282): A relatively brief improvement plan, largely scheduled during summer months, was rejected for a 58-year-old employee with long tenure — the court found the employee received "no serious opportunity" to improve behavioral functioning.

3. Required Elements of a Legally Valid Verbetertraject

Based on the Ecofys framework and subsequent case law (particularly Gerechtshof Arnhem-Leeuwarden, ECLI:NL:GHARL:2022:9956), a legally defensible verbetertraject must include:

3.1 Clear Description of Shortcomings

  • Specific, documented performance deficiencies — not vague statements like "needs to be more proactive" or "attitude needs improvement"
  • Concrete examples with dates, contexts, and impacts
  • Reference to the job description and expected performance standards
  • The employee must understand exactly what is wrong

3.2 Measurable Improvement Goals (SMART Criteria)

Goals must be:

  • Specific: "Reduce error rate in financial reports from 12% to under 3%" — not "improve accuracy"
  • Measurable: Quantifiable where possible; for behavioral issues, observable behaviors must be defined
  • Achievable: Goals must be realistic given the employee's role, experience, and the support provided
  • Relevant: Connected to actual job requirements, not fabricated metrics
  • Time-bound: Clear milestones and deadlines within the trajectory

Court warning: In ECLI:NL:RBMNE:2024:1282, the court rejected an improvement plan that contained "no concrete objective, deadline, or conditions." Vague coaching proposals without structured targets are insufficient.

3.3 Regular Evaluation Moments

  • Frequency: Bi-weekly progress meetings are the standard recommendation; weekly for critical situations; monthly at minimum
  • Documentation: Every evaluation meeting must be documented in writing, ideally signed by both parties
  • Interim assessments: At least one formal mid-point evaluation, not just a final assessment
  • Employee input: The employee must have opportunity to respond and provide their perspective at each evaluation

3.4 Coaching, Support, and Guidance

This is where most American employers fail. The employer must actively support the employee, not merely "observe and record failure." Required support may include:

  • Internal coaching from a direct manager or senior colleague (regular, structured sessions)
  • External coaching by a professional coach (courts increasingly expect this for behavioral or soft-skill issues)
  • Training and education relevant to identified skill gaps
  • Adjusted workload or temporary reduction in responsibilities to allow focus on improvement
  • Mentoring or buddy systems

Critical: The employer must take the lead. In Rechtbank Noord-Nederland (Groningen, 2 December 2015), the court found it was "poor practice" to require the employee to create their own improvement proposals. The employer drives the trajectory.

Level of support varies by context:

  • Large employers are expected to provide more resources (external coaches, formal training programs)
  • Small employers get somewhat more latitude, but must still demonstrate genuine effort
  • The more senior/experienced the employee, the more the employee is expected to show self-insight and initiative — but the employer must still provide the framework

3.5 Warning About Consequences

  • The employee must be explicitly told (in writing) that failure to improve to the required level may result in termination
  • This warning should be part of the improvement plan document, not a separate afterthought
  • The consequence must be credible and clearly linked to the improvement goals

3.6 Consideration of Alternative Positions

  • Before concluding the trajectory has failed, the employer must investigate whether the employee can be placed in a different, suitable position (see Section 5 on herplaatsing)
  • This must be documented — "we considered alternative roles and found none" is insufficient without evidence of actual investigation

3.7 No Conflicting Signals

Courts scrutinize whether the employer sent mixed messages:

  • Giving a salary increase while simultaneously claiming underperformance undermines the case
  • Positive performance reviews in the file that contradict the claimed underperformance are fatal
  • Assigning new responsibilities or promotions during the period of alleged underperformance

4. Common Employer Mistakes That Cause Courts to Reject Termination

Based on analysis of published case law, these are the most frequent reasons courts reject termination requests on the d-ground:

Mistake #1: No Formal Verbetertraject at All

Many employers believe that "we had conversations about the problems" is sufficient. It is not. Courts distinguish between informal feedback and a structured improvement trajectory. Without a formal plan with documented goals, timelines, and evaluations, termination will almost certainly be rejected.

Exception: In ECLI:NL:GHSHE:2017:5861 (Gerechtshof 's-Hertogenbosch), the court approved termination despite the absence of a formal improvement plan — but only because the employee "repeatedly and unequivocally denied dysfunction" and refused to engage with any feedback whatsoever. This is a narrow exception, not a loophole.

Mistake #2: Goals Too Vague

"Improve communication skills" or "be more proactive" are not legally sufficient improvement goals. Courts require specific, measurable targets. The more subjective the performance issue (attitude, teamwork, leadership), the more effort the employer must invest in defining observable, measurable behaviors.

Mistake #3: Insufficient Duration

American managers instinctively reach for a 30-60-90 day framework. In the Netherlands, anything under 3 months for a professional role is almost certainly insufficient, and 6 months is the safer minimum for employees with significant tenure.

Mistake #4: No Real Coaching or Support

Simply "monitoring" an employee's performance is not a verbetertraject — it is surveillance. The employer must actively invest in the employee's improvement through coaching, training, mentoring, or other concrete support measures. In Rechtbank Overijssel (Enschede, 16 October 2015), termination was rejected because no coaching trajectory was provided.

Mistake #5: Documentation Gaps

Every conversation, every evaluation, every piece of feedback must be documented in writing. Courts look for a complete paper trail showing the full arc of the trajectory. Gaps in documentation create the presumption that the employer was not actually engaged in the process.

Mistake #6: Not Investigating Alternative Positions

Even after a failed verbetertraject, the employer must demonstrate that they searched for suitable alternative positions. Failure to investigate herplaatsing is an independent ground for rejection, even if the verbetertraject itself was flawless.

Mistake #7: Demotion or Task Removal During the Trajectory

In several cases, courts found that employers undermined the trajectory by removing responsibilities from the employee or effectively demoting them during the improvement period. This contradicts the requirement that the employee be given a genuine opportunity to improve in their actual role. (Cf. Rechtbank Amsterdam, 7 December 2015, which awarded EUR 40,000 in additional compensation for a "sham trajectory.")

Mistake #8: Presenting an Ultimatum

In case law from Rechtbank Rotterdam (May 2021), the court held that presenting the employee with a choice — "either you follow an improvement plan or you leave via settlement" — signals that the employer has already decided the employee must go, undermining the genuineness of the trajectory.


5. The Herplaatsing (Redeployment) Obligation

Legal Basis

Article 7:669 lid 1 BW requires that, for any termination ground (including disfunctioneren), the employer must demonstrate that redeployment in another suitable position is not possible or not reasonable within a reasonable timeframe, with or without additional training.

Scope: How Broadly Must the Employer Search?

Under Article 9 of the Ontslagregeling (Dismissal Regulation), the redeployment obligation extends to:

  • The employer's own organization — all departments, locations, branches
  • All domestic and foreign entities within the corporate group ("concern")
  • This includes parent companies, sister companies, and subsidiaries

Critical for US multinationals: If an American parent company sets up a Dutch subsidiary (BV), and the BV seeks to terminate an employee for underperformance, the redeployment obligation extends to all entities within the global group — including positions in the US, other European entities, and elsewhere.

In Obvion N.V. / Rabobank (Rechtbank Utrecht, 2016), the court rejected the employer's claim that it could not facilitate redeployment across Rabobank group companies. The employer must include positions in other group companies when assessing available suitable roles.

What "Suitable" Means

A suitable position:

  • Matches the employee's education, experience, and abilities
  • May include positions below the original role level
  • May require reasonable retraining (if the training can be completed within the redeployment timeframe)
  • Does not include positions requiring fundamental requalification (e.g., a six-month software development course for a non-technical employee with a one-month notice period)

Reasonable Timeframe

The redeployment timeframe equals the employer's statutory notice period:

Years of ServiceNotice Period / Redeployment Window
0-5 years1 month
5-10 years2 months
10-15 years3 months
15+ years4 months
Disabled workers26 weeks

Practical Obligations

The employer must:

  1. Actively investigate available positions (not wait for the employee to find them)
  2. Give the at-risk employee priority over external candidates for suitable vacancies
  3. Document the search and its results
  4. Consider whether retraining within the timeframe could enable redeployment
  5. Demonstrate all of this to the court at the time of the termination request

6. Comparison: American PIP vs. Dutch Verbetertraject

DimensionAmerican PIPDutch Verbetertraject
Legal statusNo legal requirement in at-will states; a management tool, not a legal obligationLegally mandated by statute (Art. 7:669 lid 3 sub d BW) and scrutinized by courts
Typical duration30-60-90 days3-6 months minimum; 6-12 months for senior/long-tenured employees
True purpose (in practice)Frequently a "managed exit" -- widely perceived by HR professionals, managers, and employees alike as a precursor to termination rather than a genuine improvement opportunityMust be a genuine opportunity to improve; courts will reject termination if the trajectory was a sham
Employer's roleSets goals, monitors, documentsMust actively coach, support, train, and guide the employee toward improvement
Goal specificityOften specific, but employer has wide discretionMust be SMART; courts reject vague or unrealistic goals
Evaluation frequencyVaries; often just an end-of-period reviewRegular (bi-weekly recommended); each session documented
Coaching requirementOptional; often none providedEffectively mandatory; courts expect internal or external coaching
Consequence of inadequate PIPNone in at-will states — employer can terminate regardlessCourt rejects the termination request; employer may owe billijke vergoeding (fair compensation) on top of transitievergoeding
Redeployment obligationNoneMandatory search across entire corporate group
If employee gets sick during PIPPIP typically continues or employee is terminatedTrajectory must be paused; opzegverbod (dismissal prohibition) during illness applies
Settlement alternativeSeverance package offered; employee has little leverageEmployee has significant leverage; settlement typically 1-2x transitievergoeding
Court involvementNone (at-will termination)Kantonrechter must approve termination; applies Ecofys factors

Where They Diverge Catastrophically

The fundamental disconnect is intent. In US practice, a PIP is widely understood — by HR professionals, managers, and employees alike — as the final step before termination. The Harvard Business Review, SHRM, and employment attorneys routinely advise employees that "being placed on a PIP means you should start looking for a new job."

In the Netherlands, this mindset will destroy your case. If a Dutch court concludes that the verbetertraject was not a genuine attempt to help the employee improve — but rather a predetermined path to termination — the court will:

  1. Reject the termination request (the majority of d-ground requests are rejected)
  2. Potentially award billijke vergoeding (fair compensation) on top of the transitievergoeding for the employer's blameworthy conduct
  3. Leave the employer stuck with an employee they can no longer work with, often leading to a much more expensive settlement

The American PIP is a funeral procession. The Dutch verbetertraject must be a genuine rehabilitation program.


7. The Role of the Bedrijfsarts (Occupational Health Physician)

When Underperformance May Be Health-Related

A fundamental principle of Dutch employment law: you cannot terminate an employee for underperformance if the underperformance is caused by illness or disability. Article 7:669 lid 3 sub d BW explicitly excludes unsuitability caused by "ziekte of gebreken" (illness or defects).

The Opzegverbod (Dismissal Prohibition) During Illness

Under Article 7:670 lid 1 BW, an employer cannot terminate an employee who is sick. This creates a critical interaction with the verbetertraject:

  • If an employee becomes sick during a verbetertraject, the trajectory must be paused
  • The employer cannot proceed with a termination request while the employee is on sick leave
  • The verbetertraject can only resume once the bedrijfsarts declares the employee fit to work

The "Flight into Illness" Problem

A common pattern: the employer initiates a verbetertraject → the employee reports sick → the trajectory stalls → months pass → the employer is stuck.

Dutch practice addresses this through:

  1. Bedrijfsarts assessment: Only the bedrijfsarts (occupational physician) is legally authorized to determine whether the employee is genuinely ill. The employee's own GP (huisarts) opinion is not decisive.
  2. Situatieve arbeidsongeschiktheid: When the employee is not medically ill but experiences psychological distress due to the workplace situation, the bedrijfsarts may classify this as "situational incapacity" rather than medical illness.
  3. Deskundigenoordeel (expert opinion): Either party can request the UWV to provide an independent assessment of whether the employee is genuinely unable to work.
  4. Demedicalization trend: Modern bedrijfsartsen increasingly distinguish between genuine illness and workplace conflict. When pure conflict exists, the physician may grant a brief "time out" (typically 1-2 weeks) rather than ongoing sick leave, and require the employer to initiate conflict resolution (often through mediation).

Practical Guidance

  • Before starting a verbetertraject: Consider whether health issues may be contributing to underperformance. If there is any doubt, involve the bedrijfsarts first.
  • During a verbetertraject: If the employee reports sick, immediately refer them to the bedrijfsarts. Do not attempt to continue the trajectory during illness.
  • If the bedrijfsarts finds no illness: The trajectory can continue. Document the bedrijfsarts's finding.
  • If the bedrijfsarts finds partial illness: Discuss with the bedrijfsarts what the employee can and cannot do. The trajectory may need to be adjusted.

8. Settlement Alternative: Vaststellingsovereenkomst vs. Verbetertraject

When to Consider a Settlement

In many underperformance situations, the pragmatic path is to negotiate a vaststellingsovereenkomst (VSO, settlement agreement) rather than run a full verbetertraject. This is particularly true when:

  • The employment relationship is already severely damaged
  • The employee acknowledges the problems are likely irreconcilable
  • The cost and management time of a 3-6 month trajectory exceed the settlement cost
  • There is a risk the verbetertraject will fail legally (insufficient documentation, mixed signals in the file)
  • Mediation has been attempted and failed

Cost Comparison

Cost ElementVerbetertrajectSettlement (VSO)
Duration of continued employment3-6 months minimum (salary continues)Negotiated end date (typically within notice period)
Management timeSignificant: bi-weekly meetings, documentation, coaching coordinationModerate: negotiation period, typically weeks
External costsCoaching (EUR 5,000-15,000), legal advice on trajectory design, potential trainingLegal advice for both parties (employer typically pays EUR 750-2,500 for employee's legal review)
TransitievergoedingOwed upon termination regardlessIncluded in settlement (often as minimum)
Additional compensationRisk of billijke vergoeding if trajectory is found inadequateTypically 1-2x transitievergoeding total package; may be higher if employer's file is weak
Risk of failureHIGH -- the majority of d-ground court requests are rejected, meaning you may run a 6-month trajectory and still fail to get termination approvedLOW -- once signed, the VSO is binding (employee has 14-day cooling-off period)
Total estimated cost3-6 months salary + management time + external costs + risk premiumTypically equivalent of 3-6 months salary as lump sum, but with certainty

The Paradox

The employer's negotiating leverage in a settlement depends on having a credible dismissal file. If the employer has no documentation of underperformance, no prior feedback, and no attempt at improvement, the employee (and their lawyer) know that the employer cannot obtain a court termination. This drives settlement amounts upward.

Conversely, an employer who has documented underperformance, provided feedback, and offered some improvement support — even if not a complete verbetertraject — has stronger leverage to negotiate a reasonable settlement.

Best practice for US managers: Start documenting performance issues and providing written feedback immediately, even if you intend to pursue a settlement rather than a verbetertraject. The documentation serves double duty.

The 14-Day Cooling-Off Period

Under Article 7:670b lid 2 BW, an employee who signs a vaststellingsovereenkomst has 14 calendar days to revoke it without stating a reason. If the employer fails to mention this right in the agreement, the period extends to 21 days. This is non-negotiable.


9. Five Case Studies from Published Case Law

Case 1: Termination APPROVED — The Uncooperative Senior Project Manager

Citation: ECLI:NL:GHSHE:2017:5861 Court: Gerechtshof 's-Hertogenbosch (Court of Appeal) Date: 21 December 2017

Facts: An ICT service provider employed a senior project manager whose contract converted from fixed-term to indefinite in August 2015. Performance issues emerged quickly: removed from a client project due to trust deficit (September 2015), written warning citing inadequate planning, progress reporting, and stakeholder management (October 2015), failed required PMI certification exam (March 2016), and multiple documented performance meetings April-September 2016.

No formal improvement plan was created. However, the employer provided:

  • Detailed written warnings with specific deficiencies
  • Multiple performance discussions with concrete feedback
  • Offered support and guidance
  • Clear documentation of each conversation

Ruling: Termination approved despite no formal verbeterplan. Key factor: the employee "repeatedly and unequivocally denied dysfunction" despite all feedback. The court held that when an employee persistently refuses to acknowledge performance deficiencies, the employer's obligation to provide a formal improvement plan is effectively negated. The employee's belated, reluctant acknowledgment of problems "in this procedure" came "so late and reluctantly that it cannot be considered."

Lesson: Employee non-cooperation and denial can override the formal improvement plan requirement — but this is a narrow exception, not a strategy.


Case 2: Termination REJECTED — The Long-Tenured Employee Without Concrete Goals

Citation: ECLI:NL:RBOVE:2016:4980 Court: Kantonrechter Overijssel Date: 2016

Facts: An employee with 24+ years of service faced dismissal after organizational changes increased job demands. An external assessment concluded the employee was "developable with proper coaching." The employer held performance discussions, issued warnings, and provided on-site coaching.

Ruling: Termination rejected. The court found that the employer:

  • Failed to set concrete, measurable improvement targets
  • Provided no structured improvement plan with clear milestones
  • Offered insufficient meaningful support beyond general evaluations
  • Did not define timelines or evaluation points

Key quote from the court: A long-tenured employee deserves "heavier effort" from the employer seeking termination on performance grounds.

Lesson: Conversations and warnings are not a verbetertraject. For long-tenured employees, the bar is significantly higher.


Case 3: Termination APPROVED — The Operations Manager Who Didn't Act

Citation: ECLI:NL:RBROT:2025:5440 Court: Rechtbank Rotterdam Date: 30 April 2025

Facts: An employer hired a Manager Operations in January 2024 to restructure a department. A verbetertraject was initiated on 9 July 2024, running until 27 November 2024 (~4.5 months). The improvement plan addressed specific areas: accuracy, time management, safety compliance, independent work performance, following agreements, and not involving colleagues unnecessarily. Regular evaluation meetings with documented progress reports were held. The employee participated (though initially refusing to sign the plan).

Ruling: Termination approved. The court found the employer had provided "a serious and genuine opportunity for improvement." Key factors in the employer's favor:

  • Specific, measurable improvement areas
  • Regular, documented evaluations
  • Adequate duration (4.5 months)
  • The employee "did not convert words into actions" — verbally accepted changes but behavior did not improve
  • Safety issues (leaving open containers of flammable thinner unattended) were particularly serious

Lesson: A well-structured, well-documented trajectory of adequate length will be upheld, especially when the employee had a clear opportunity and failed to take it.


Case 4: Termination on d-ground REJECTED, i-ground APPROVED — The Behavioral Issue Without Support

Citation: ECLI:NL:RBMNE:2024:1282 Court: Rechtbank Midden-Nederland Date: 23 February 2024

Facts: A 58-year-old employee with long tenure faced performance issues centered on attitude, behavior, and teamwork (not technical competence) following team restructuring. The employer attempted two improvement efforts.

What went wrong with the verbetertraject:

  • The coaching proposal included "no concrete objective, deadline, or conditions"
  • After December 2022, the employer abandoned coaching discussions despite being the "leading party"
  • When the employee requested external coaching (his preferred approach), the employer declined
  • The second improvement plan was "relatively brief" and largely scheduled during summer months
  • Conversations primarily involved "repeatedly confronting the worker with criticism" without tailored support

Ruling: Termination on the d-ground (underperformance) was rejected — the employee received "no serious opportunity" to improve. However, the court approved termination on the i-ground (cumulative grounds) because the combined circumstances — prolonged friction, failed mediation, and the employee's freedom from work since October 2023 — justified it.

Compensation: Transitievergoeding of EUR 79,889.95 plus an additional 50% (maximum allowed under the i-ground) as cumulative compensation.

Lesson: Failing the verbetertraject doesn't always mean the employer loses entirely — but the i-ground comes with a significant price premium. The employer paid roughly EUR 120,000 instead of what might have been EUR 80,000 with a proper d-ground termination.


Case 5: Termination REJECTED — The Ultimatum That Backfired

Citation: Rechtbank Rotterdam, May 2021 (discussed in Salaris Vanmorgen) Court: Kantonrechter Rotterdam Date: May 2021

Facts: An employer presented an employee with a choice: participate in a verbetertraject or leave via a vaststellingsovereenkomst. The court examined the employer's conduct and found:

  • The employer had given the employee "almost obsessive attention" through constant monitoring
  • The framing of the choice — "either you follow an improvement plan or you depart" — signaled the employer had already decided the employee must go
  • The constant surveillance meant "someone always does something wrong"
  • The employer should have intervened in the underlying conflict earlier

Ruling: The court terminated the employment relationship but awarded:

  • Transitievergoeding: EUR 2,269 gross
  • Billijke vergoeding (fair compensation): EUR 5,000 gross — a penalty for the employer's blameworthy conduct

Lesson: Never present the verbetertraject as an ultimatum or pair it with a settlement offer. Courts read this as evidence that the trajectory is not genuine. Also: micromanaging an employee during a verbetertraject can backfire catastrophically.


10. Practical Guidance for US Managers

Step-by-Step: Addressing Underperformance in a Dutch Team Member

Phase 0: Before You Start (Weeks 1-4)

  1. Check the employment contract and any applicable CAO (collective labor agreement). Some CAOs have specific provisions about performance management.
  2. Review the employee's performance file. Are there prior positive evaluations that contradict the current concerns? If so, you need to build a bridge between those and the current issues.
  3. Consult a Dutch employment lawyer. Do this BEFORE taking any action. Not after. Not during. Before. Dutch employment law is procedural, and missteps early in the process are often fatal.
  4. Rule out health issues. If there is any possibility that the underperformance is health-related (stress, burnout, depression, physical issues), involve the bedrijfsarts first.
  5. Document everything from this point forward. Every conversation, every piece of feedback, every email — in writing.

Phase 1: Informal Feedback (Weeks 1-8)

  1. Have a frank conversation with the employee about the performance concerns. Be specific. Give concrete examples.
  2. Confirm the conversation in writing (email or letter), summarizing what was discussed and what improvement is expected.
  3. Provide initial support — ask what the employee needs to improve. Offer resources.
  4. Follow up regularly (at least monthly) and document progress or lack thereof.

Phase 2: Formal Verbetertraject (Months 3-9)

  1. Create a formal written improvement plan containing:
    • Specific shortcomings with concrete examples
    • SMART improvement goals
    • Timeline (minimum 3 months; 6 months recommended for tenured employees)
    • Evaluation schedule (bi-weekly meetings)
    • Support measures (coaching, training, mentoring)
    • Explicit warning that failure to improve may result in termination
  2. Discuss the plan with the employee. Give them opportunity to provide input. They should sign it (or at minimum receive it and acknowledge receipt).
  3. Conduct regular evaluations and document each one in writing. Include both the employer's assessment and the employee's response.
  4. Provide the promised support. If you committed to coaching, deliver the coaching. If you promised training, enroll them.
  5. Conduct a formal mid-point review. Assess progress, adjust goals if needed, and document.
  6. Conduct a final evaluation. Determine whether improvement has been sufficient.

Phase 3: After the Verbetertraject

  1. If the employee has improved: Document this, end the trajectory, and monitor for sustained improvement.
  2. If the employee has not improved sufficiently:
    • Investigate herplaatsing across your entire corporate group (including the US parent and any other entities)
    • Document the herplaatsing investigation and its results
    • Consider a settlement (vaststellingsovereenkomst) before going to court — it is often faster, cheaper, and more certain
    • If no settlement is possible, file for ontbinding (termination) with the kantonrechter through your Dutch employment lawyer

What NOT to Do

Do NOT...Because...
Use a 30-60-90 day American-style PIPCourts will find the duration insufficient for most professional roles
Treat the verbetertraject as a managed exitCourts will detect this and reject the termination
Set vague goals ("improve communication")Courts require specific, measurable targets
Skip the coachingCourts expect active employer support, not passive monitoring
Ignore the herplaatsing obligationThis is an independent ground for rejection
Continue the trajectory if the employee gets sickThe opzegverbod prohibits this; pause and wait
Present it as an ultimatum ("improve or leave")Courts read this as evidence the trajectory is not genuine
Give positive performance reviews while running a verbetertrajectContradictory signals destroy your case
Assume your US HR processes will work in the NetherlandsThey will not. Dutch employment law is fundamentally different.

When to Involve Dutch Employment Counsel

  • Before starting any formal performance management process — not after
  • When the employee reports sick during the verbetertraject
  • When considering whether to pursue a verbetertraject vs. a settlement
  • Before filing any termination request with the kantonrechter
  • When the employee is a member of the works council (ondernemingsraad) or is pregnant (additional protections apply)
  • When there is any doubt about the adequacy of your file

Sources

Primary Legal Sources

  • Article 7:669 lid 3 sub d BW (Dutch Civil Code)
  • Article 7:670 lid 1 BW (dismissal prohibition during illness)
  • Article 7:670b lid 2 BW (cooling-off period for settlement agreements)
  • Ontslagregeling, Article 9 (redeployment obligation scope)

Landmark Case Law

Case Studies Cited

Secondary Sources (Law Firm Analysis and Practitioner Guidance)


Research compiled 2026-03-16. Case law and statutory references verified against available sources. Specific settlement amounts and cost estimates should be verified with Dutch employment counsel for current market conditions.

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