Expat in the Netherlands facing dismissal

As an international employee, dismissal affects you differently. Your residence, tax benefits and future plans are all at stake.

Dismissal affects you on multiple levels

For international employees, the consequences of dismissal during a reorganization extend far beyond losing a job. Your residence permit, the 30% ruling, your children's school choices, your partner's position — everything is connected to your employment.

Dutch employment law provides you as an international employee with the same protection as Dutch employees: right to a transition payment, correct application of the reflection principle, redeployment efforts and a cooling-off period for settlement agreements. But the additional complexity of your situation often justifies extra attention in the departure arrangement.

An employer dismissing an international employee during a reorganization is aware that the consequences are more far-reaching than for a Dutch employee during a reorganization. When fulfilling the redeployment obligation, it may also be relevant whether suitable positions are available within other parts of the group. These factors can strengthen your negotiating position.

ReorgLegal has extensive experience guiding international employees through dismissal. We work entirely in English and understand the specific challenges you face.

What you need to arrange immediately

  • Do not sign any documents without legal advice
  • Ask for a reasonable response period
  • Check the status of your residence permit
  • Check the remaining term of your 30% ruling
  • Inventory your entitlements: bonus, equity, holiday days
  • Inform your partner about the potential consequences
  • Contact ReorgLegal for an initial assessment

The key issues for you as an expat

Your residence permit

If your residence permit is linked to your employer — for example as a highly skilled migrant (kennismigrant) — termination of your employment has direct consequences for your residence status. Highly skilled migrants typically have a search period of up to three months to find a new employer. It is essential that the end date in the settlement agreement takes this into account. An end date that is too early can jeopardize your residence position.

The 30% ruling

The 30% ruling is linked to your employer. Upon dismissal, you have a limited period of up to three months to find a new employer who can take over the ruling. The financial impact of losing the ruling can be significant — approximately 21,000 euros in additional taxable income per year on a salary of 70,000 euros. This impact can be factored into the negotiation.

Impact on partner and family

Your dismissal can affect your partner's residence permit if they hold a dependent residence right. Your children's schooling may also be impacted — especially if they attend an international school with fees that were partly or fully paid by your employer. These costs can be part of the negotiation.

Stay or leave

Dismissal may force you to choose between staying in the Netherlands or returning to your home country. Both options involve costs. If you relocated to the Netherlands for your job, repatriation or relocation costs can be part of the negotiation, especially if your employment contract originally included a relocation allowance.

Equity and shares

Many international employees receive part of their compensation in RSUs, stock options or other equity. Dismissal can disrupt the vesting schedule. In the settlement agreement, you can negotiate accelerated vesting or compensation. The tax treatment of equity for international employees is complex and depends on the applicable tax treaty.

International tax implications

The tax treatment of severance for international employees depends on your tax residency, the applicable tax treaty and the period you worked in the Netherlands. When leaving the Netherlands after dismissal, specific rules apply for the allocation of taxing rights. We recommend consulting a specialized tax advisor for international tax matters.

What can you negotiate?

When an international employee is dismissed during a reorganization, there are more negotiation points than in a standard dismissal. Beyond the usual severance and notice period, you can negotiate:

  • Compensation for loss of the 30% ruling
  • Extended end date for additional search time
  • Repatriation budget or relocation allowance
  • Accelerated vesting of equity or RSUs
  • Continuation of housing allowance
  • Outplacement support for international professionals
  • Continuation of children's school fee coverage
  • Waiver or limitation of non-compete clause
  • Legal costs contribution

It is not just about the monetary amount. The total value of the departure arrangement is determined by the full package. A longer notice period with garden leave may give you more time to find a new employer who can take over your 30% ruling — and that can be worth more than a higher one-off payment.

Non-compete clause and international mobility

A non-compete clause can be particularly restrictive for international employees. If the clause is limited to the Dutch market, it restricts your ability to continue working in the Netherlands while returning to your home country may not be realistic. Having the clause waived or limited is therefore an important negotiation point.

Guidance in English

ReorgLegal guides international employees entirely in English. We understand the specific challenges you face and have extensive experience with multinational employers.

We communicate clearly about Dutch employment law, without a language barrier. You do not need to speak Dutch to know and exercise your rights.

WW rights for international employees

As an international employee, you have the same WW (unemployment benefit) rights as Dutch employees, provided you meet the conditions. Within the EU/EEA, WW benefits can under certain conditions be temporarily exported to another country. Outside the EU, exporting WW rights is generally not possible. The settlement agreement must be correctly drafted to protect your WW rights.

Pension and social security

Upon dismissal, your participation in the employer's pension scheme typically ends. Accrued pension rights are preserved. International transfer of pension rights is only possible under specific conditions. For each year in which you were not insured for AOW (state pension), the accrual is typically reduced by 2%.

Your stronger negotiating position

The additional consequences of dismissal for international employees can be relevant in the negotiations over the departure arrangement. These circumstances can in practice be taken into account during the negotiations.

Received a settlement agreement? Get a free review.

Upload your agreement and we will assess your situation. On business days we respond within 1 hour.

Start free review