When Your Employee Disappears: What Dutch Law Says About the Impossible Employment Relationship

What Happened in This Case

I have followed Dutch employment law cases for years, but a case from February 2026 really caught my attention.

A small-business owner faced a situation most founders dread. An employee called in sick and then disappeared. They didn’t return calls or emails and didn’t cooperate with the company doctor. There was no response at all.

The employer followed all the right steps. They kept a record of every attempt to contact the employee, involved the arbodienst (occupational health and safety service), published a notice in the Staatscourant, and even filed a missing person report with the police.

The District Court of Noord-Holland allowed the termination, deciding that the working relationship could not continue.

However, the court did not cancel the transition payment.

The employer still had to pay the full statutory transition payment, calculated based on the employee’s salary and length of service.

This ruling (ECLI:NL:RBNHO:2026:487) highlights an important point that many expat small business owners overlook: being allowed to terminate and having to pay transition compensation are two separate issues.

In short, even if you have a good reason to terminate, you still have to pay the required costs.

How Dutch Employment Law Creates Two Separate Thresholds

Dutch employment law uses a two-step system, with each step answering a different legal question.

Threshold One: Can the Contract Be Dissolved?

The court considers two things: whether the working relationship still works, and if there is a reasonable way to continue.

If an employee disappears completely, it’s clear the relationship can’t continue. You can’t reintegrate someone you can’t contact, and you can’t meet your obligations as an employer if the employee is gone.

The court recognized this and approved the termination.

Threshold Two: Must You Pay the Transition Payment?

Here, Dutch law is very clear: the transition payment is a legal right unless the employee’s behavior meets the “seriously culpable” (ernstig verwijtbaar) standard.

This standard requires clear proof of intentional wrongdoing.

Disappearing after calling in sick doesn’t automatically meet this standard. The court explained that no one knew why the employee disappeared, illness was still possible, and there was no proof of fault.

If there isn’t clear evidence, Dutch law sides with the employee.

So, the transition payment still applies.

It’s important to note that obtaining approval to terminate and obtaining a payment waiver require different types of evidence.

What Are the Financial Consequences for Small Businesses?

In 2026, the maximum transition payment is €102,000, but there are other details to consider.

If an employee earns more than €102,000 a year, their maximum transition payment is equal to one year’s gross salary. In cases of serious employer fault, courts can also award unlimited “fair compensation” (billijke vergoeding) in addition to the transition payment.

For small business owners with tight budgets, this can be a tough situation. Even if you have a good reason to terminate, you still face these legal costs.

You already have to deal with the challenges of an absent employee. Dutch law requires you to pay their salary for the first two years of illness, manage the extra workload, and handle any impact on your customers.

Then, you also have to pay to officially end a relationship that has already stopped working in practice.

The financial risk is significant. In the Netherlands, employer contributions to social insurance and payroll taxes add 22-36% to gross wages. On top of that, you have to pay for up to 104 weeks of sick leave, the transition payment, and possibly legal fees if the case goes to court.

Small businesses feel this impact more than large companies. You probably don’t have an HR department or a legal team on standby. You’re likely the one making contact attempts, sending emails, and keeping records yourself.

The reality is that small businesses have to handle these legal costs without the support systems that big companies have.

Why Documentation Becomes Your Legal Foundation

In this case, the employer followed all the right procedures. While the documentation didn’t eliminate the need to pay, it did provide the legal basis to end the contract.

Here is what the court saw:

Documented contact attempts: Multiple calls, emails, letters to the last known address.

Arbodienst involvement: Proper engagement with the occupational health service, attempts to schedule medical examinations.

Public notice: Publication in the Staatscourant when other contact methods failed.

Police report: Missing person notification demonstrating the severity of the situation.

Without this paper trail, the employer wouldn’t have won termination approval. The court needs to see that you attempted to fulfill your obligations even when the employee made it impossible.

This means that keeping records isn’t just paperwork—it’s a legal requirement.

For small businesses that rely on trust and informal communication, this is an extra compliance cost you might not expect. You’re not just managing the relationship—you’re also building a legal case file as you go.

You need to ask yourself: if this goes to court, what proof do I have of my actions and the reasons for them?

The purpose of documentation is to shift the legal burden from you to the employee.

What Happens When Reintegration Fails Because the Employee Refuses?

Dutch law requires employers to help sick employees return to work. You must engage the company doctor. You must participate in reintegration planning. You must continue these efforts for up to two years.

All employers in the Netherlands are legally obliged to sign a contract with an arbodienst under the Working Conditions Act. The Netherlands Labour Authority enforces this requirement and imposes fines for the absence of this basic contract.

But here’s the issue: what happens when the employee refuses to participate?

You still have the obligation. You still pay the salary. You still build up the risk of having to pay the transition payment.

The system expects both sides to act in good faith. If that doesn’t happen, the employer faces the legal and financial consequences.

This creates an imbalance. The person with the least control—the employer—ends up carrying the biggest burden.

You can’t make an employee answer the phone, cooperate with the company doctor, or attend reintegration meetings.

But you do have to document every attempt and show the court that you did everything you could.

When it comes to reintegration, employers are fully responsible, even if the employee stops participating.

What Does “Seriously Culpable” Mean in Practice?

The “ernstig verwijtbaar” standard is set very high on purpose. Dutch employment law is designed to protect employees.

Courts have decided that even if employees call in sick and refuse all contact, they still have dismissal protection and the right to transition payments if the employer hasn’t followed the correct procedures.

The law looks for clear cases of misconduct, such as theft, fraud, violence, gross negligence, or deliberate sabotage.

Disappearing after calling in sick doesn’t automatically count as serious misconduct. The court needs proof that the absence was intentional and not due to illness or something beyond the employee’s control.

This is why documentation is so important. You’re not just showing that the employee disappeared, you’re showing that you did everything you could to stay in touch and meet your responsibilities.

The less information there is, the more the law protects the employee.

The standard for evidence is clear: absence alone isn’t enough to prove misconduct unless the employer can show proper documentation of their actions.

What Changes in July 2026?

Starting July 1, 2026, only small businesses with fewer than 25 employees remain eligible for compensation from the UWV (Employee Insurance Agency) for transition payments paid after two years of employee sickness.

Larger employers will lose this safety net completely.

This change affects businesses as they grow. Once you have more than 24 employees, your financial risk goes up, and the protections that helped cover these costs disappear just as you’re investing in growth.

For expat entrepreneurs in the Netherlands, this is a structural challenge that’s different from other countries. There’s no employment-at-will here. The Dutch system focuses on protecting employees and encouraging open communication.

Your experience from your home country won’t prepare you for this. General business advice doesn’t always apply, as the Dutch system operates on different principles.

The risk at the growth threshold is clear: once you have more than 24 employees, you lose the UWV safety net for transition payment costs.

What Controls Reduce Your Exposure?

Most small business owners won’t have an employee disappear completely, but you’re probably familiar with issues like unclear sick notes, missed appointments, communication problems, or reintegration disputes.

These steps can help reduce your risk before things get out of hand:

Start documenting from the first day of absence.Keep a simple log with the date, time, how you tried to contact the employee, and any response. This isn’t just paperwork, it’s your proof.

Get the arbodienst involved right away.Contact the company doctor as soon as you get a sick report. Their involvement creates an independent professional record.

Make your communication expectations clear in writing. Send a letter or email outlining what you need from the employee, including cooperation with the company doctor, response times, and participation in reintegration. Keep your tone professional and neutral.

Escalate your efforts step by step:start with phone calls, then send registered mail, and if needed, publish a notice in the Staatscourant. Each step adds to your record of trying to keep in touch.

Talk to an employment law expert early, before a crisis happens.Knowing your obligations and risks ahead of time helps you make better decisions when things get stressful.

Remember,caring about your employee’s wellbeing and protecting your business with proper documentation are not in conflict. You can do both.

The key strategy is documentation. It protects your right to terminate, even if you still have to pay the transition payment.

Why This Matters for Expat Entrepreneurs

If you’re an expat building a business in the Netherlands, this ruling highlights an important point: employment law is still very local, even in a global business world.

The Netherlands ranks among Europe’s most business-friendly countries. The regulatory environment supports entrepreneurship. The infrastructure is excellent. The talent pool is strong.

But the Dutch employment law system may feel counterintuitive if you’re used to at-will employment or less protective rules in other countries.

The Dutch system expects both employers and employees to share responsibility for a safe and healthy workplace. These obligations continue even if the employee stops participating.

You can’t avoid these rules by hoping they were different or by using strategies from other countries. You need to understand the Dutch system and set up your processes to match.

The reality is that Dutch employment law protects employees by default, and experience from other countries doesn’t apply here.

What This Ruling Does Not Say

This case doesn’t establish that all employee disappearances result in transition payments. It establishes that disappearance alone doesn’t meet the seriously culpable standard in the absence of additional proof of intentional misconduct.

The ruling doesn’t eliminate your ability to terminate impossible employment relationships. It clarifies that termination approval and payment waiver are separate legal questions with different proof standards.

The court didn’t punish the employer. It applied the statutory framework as designed. Protective by default, needing clear proof to deviate.

For small business owners, the takeaway isn’t that the system is unfair. It’s that the system works differently than you might expect, so your processes need to reflect that.

Ruling clarity: Termination and payment are separate thresholds with separate evidence requirements.

How Informal Business Culture Can Lead to Legal Risks

Many small business owners choose a smaller scale to avoid corporate formality. You want direct relationships, trust, and flexibility.

But Dutch employment law is pushing this informal culture toward greater formality.

The cost of compliance isn’t just financial, it’s also mental. You have to keep track of both the personal relationship and the legal paperwork simultaneously.

This marks a big change in how small businesses manage risk. Legal protection needs to be part of your daily routine, not just something you think about when there’s a problem.

If you don’t keep records, you’re exposed. When things go wrong, not having documentation doesn’t just weaken your case; it removes your legal standing entirely.

The cost of an informal culture is that you still need formal records to protect yourself legally.

Frequently Asked Questions

Does the transition payment apply even when an employee vanishes?

Yes. The transition payment is a statutory right remaining unless the employee’s behavior meets the “seriously culpable” standard. Disappearance during sick leave, in itself, doesn’t qualify as seriously culpable without proof of intentional misconduct.

What is the maximum transition payment in 2026?

The statutory maximum is €102,000. If an employee earns more than €102,000 annually, the maximum equals one full year of gross salary. Courts also award unlimited fair compensation in cases of serious employer culpability.

What happens if I don’t document contact attempts?

Without documentation, you can’t establish the legal foundation for termination. The court needs proof that you attempted to fulfill your obligations despite the employee’s absence. No documentation means no termination approval.

When should I involve the arbodienst?

Immediately when an employee reports being sick. All Dutch employers must have a contract with an arbodienst under the Working Conditions Act. Early involvement creates a professional record independent of your relationship with the employee.

What counts as “seriously culpable” behavior?

The standard necessitates clear intentional misconduct. Theft. Fraud. Violence. Gross negligence. Deliberate sabotage. The threshold is deliberately high because Dutch employment law is protective by design.

Does the July 2026 change affect my business?

Starting July 1, 2026, only businesses with fewer than 25 employees qualify for UWV compensation on transition payments after two years of sickness. If you employ 25 or more people, you lose this safety net.

How long must I pay an employee’s salary when they report sick?

Dutch law requires employers to pay a salary during the first two years of illness. You carry this obligation even when the employee refuses to cooperate with reintegration efforts.

What if the employee refuses to cooperate with the company doctor?

You still carry the reintegration obligation. You still pay the salary. You still build transition payment liability. Document every attempt to engage the employee. The documentation shows the court that the failure was not yours.

Key Takeaways

• Dutch law separates contract termination from transition payment obligations. Winning termination doesn’t eliminate the payment.
• The transition payment remains unless the employee’s behavior is “seriously culpable,” requiring proof of intentional misconduct beyond mere absence.
• Documentation isn’t optional. It establishes your legal foundation for termination even when payment obligations remain.
• Employers bear full responsibility for reintegration even when employees disengage. The system defaults to employee protection in the absence of clear evidence.
• From July 2026, businesses with 25 or more employees lose UWV compensation for transition payments, raising exposure at the growth threshold.
• Informal corporate culture creates legal risk. Legal defensibility needs concurrent documentation during daily operations.
• Expat experience from other jurisdictions doesn’t apply. Dutch employment law operates on essentially different protective principles.

Decision Line

Having structure isn’t just bureaucracy; it’s what keeps you in control when things go wrong.

The system doesn’t look at your intentions. It looks at your proof and whether you met your responsibilities.

Set up your processes now, and you’ll avoid panic later.