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Labor Market Balance Act: cumulation ground

If you want to dismiss an employee as an employer, you must have reasonable grounds for this. The law now contains eight grounds for dismissal. The chosen ground for dismissal determines the procedure to be followed. Starting January 1, 2020 a new dismissal ground will be introduced in the WAB: the cumulation ground.

Read more about the WAB 

Background

The work and security act (WWZ) states that each ground for dismissal must in itself be sufficient to terminate the employment contract. The employer may therefore not add up grounds for dismissal in order to justify a dismissal. The strict dismissal regime has ensured in recent years that many applications for termination were rejected by the court. A dismissal ground will be added on 1 January 2020, whereby dismissal grounds can be combined with each other. This cumulation ground makes it easier for an employer to dismiss and employee.

Cumulation ground dismissal

A new component will be added to the existing article, the cumulation ground or “i-ground”. The cumulation ground means that employers may combine two or more grounds in a request for termination so that a situation arises that the employer can no longer let the employment contract stand. The grounds for cumulation do not relate to the grounds for dismissal via the UWV (Employment Insurance Agency). A combination of these grounds may also not be made.

An example: In a request for termination in court, an employer cannot combine a dismissal for economic reasons (UWV procedure) with a dysfunction reason. This also applied to (higher) appeal cases.

Cumulation ground and extra reimbursement

If the court dissolves an employment contract on the basis of the cumulation ground, the court may possibly grant a higher (extra) transition payment to the employee. The court’s motivation determines the amount of the compensation (no more than half of the transition compensation) and the reasons for additional compensation. This extra payment is in addition to the transition payment and any fair payment that can be awarded in the vent of serious culpable actions by the employer. If the employer finds the extra compensation too high, which the court determines by ‘the circumstances of the case’, the employer can choose to withdraw the request for termination of the employment contract.

Expectation in practice

With the addition of the “i-ground”, it is expected that the court will terminate an employment contract much sooner than under the current legislation.

If you have any questions about the new ground for dismissal or about the Labor Market Balance Act, please contact our specialists.

Crowe Peak
Olympisch Stadion 24-28 1076 DE Amsterdam, The Netherlands
+3188 2055 000 info@crowe-peak.nl