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Motivation Requirement in Dismissal: When and How Must the Employer Provide Reasons?

Employers must motivate dismissal with concrete reasons (art. 7:672(3) BW). Discover when, how and the consequences of failing to motivate. Tips for employees on how to respond and avoid court cases.

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Motivation Requirement in Dismissal: When and How Must the Employer Provide Reasons?

Article 7:672(3) BW obliges the employer to motivate a notice of termination. This means providing a concrete reason, such as business economic circumstances, underperformance or long-term illness (art. 7:669 BW). Without motivation, the notice of termination is null and void.

When Does the Motivation Obligation Apply?

  • Always in case of employer-initiated termination.
  • Not in case of employee-initiated termination or mutual termination.
  • Exception: urgent cause (no notice of termination, but summary dismissal).

How to Motivate Correctly?

The letter must describe specific facts and circumstances, not vague formulations. For underperformance: evidence of improvement trajectory. In case of reorganisation: number of jobs and alternatives.

Consequences of Missing Motivation

Employee can demand dissolution or fair compensation via the sub-district court. Court tests 'reasonableness and fairness' (art. 7:671a BW).

For Employees: Response to Motivation

Put dismissal on hold and prepare defence. Request hearing and improvement opportunity (art. 7:672(2) BW). In case of incorrect motivation: chance of reinstatement or compensation.

Proper motivation prevents court cases and high costs. (202 words)

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