Since 1 July 2015 it is necessary to substantiate one of limited dismissal grounds for the termination of an employment agreement. An expat usually has an employment agreement for an indefinite period of time in his home country, but is temporarily sent to another country. The expat agreement will determine the return to the home country after this period of time. Which dismissal ground applies in case the expat’s position in his home country has been terminated for economic reasons and no alternative employment can be found?
Recently the Court of Appeal of The Hague has decided on this situation for a Russian expat in the Netherlands. The Court of Appeal decided that this was not an economic reason (the a-ground) as the economic reason did not relate to the Dutch part of the employment agreement. It subsequently terminated the employment agreement based of the so-called h-ground (‘other circumstances’) as it could no longer be expected from the employer to continue the employment.
So far, the h-ground is rarely applied; the h-ground could however as of now be a solution for organizations that are unable to find alternative employment for their expats.
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