The dismissal of managing directors - key issues

Employees in the Netherlands enjoy strong protection against dismissal. Unless the employee explicitly agrees to termination of the employment agreement, the employment agreement can be terminated only by the court or by notice given by the employer with the approval of a specific governmental authority. The sole exception to this rule concerns the position of the managing director, which differs from that of a normal employee. The managing director has a dual position, as he or she has both a corporate position and an employment agreement with the company. The managing director does not enjoy the same employment law protection as normal employees. This update outlines the key issues concerning the dismissal of a managing director in the Netherlands.