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Conditional dissolution of the employment contract

The conditional dissolution of an employment contract is a dissolution ordered by the subdistrict court judge that takes effect only if one or more of the conditions imposed have been fulfilled.

The conditional dissolution constitutes a special form of dissolution of the employment contract whereby the cantonal court dissolves the employment contract subject to a condition, such as the payment of a specified compensation or the transition payment. This frequently arises in situations where the parties disagree on termination, yet the employer nevertheless wishes to end the employment relationship.

Its relevance lies in enabling the employer to terminate the employment contract without the necessity of a settlement agreement, while preserving a measure of protection for the employee. In practice, it serves to expedite negotiations or to break an impasse.

In legal practice, this mechanism is encountered primarily in applications for dissolution under Article 7:671b of the Dutch Civil Code, where the court may attach conditions to the dissolution.

“The subdistrict court judge has conditionally dissolved the employment contract, subject to the employer paying the transition compensation within two weeks.”

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