What to do in a labor dispute? Practical tips for employers and HR
A labor dispute is one of the most difficult challenges for an employer or HR professional. What starts with some irritation between colleagues or tension between supervisor and employee can turn into a disrupted working relationship. But when exactly does this occur? What are your options as an employer? And how do you make sure you have a strong legal position?
In this blog, we explain in an understandable way how to recognize, prevent and resolve labor conflicts. We also discuss the legal side of the story, such as dismissal based on the g-ground (disturbed working relationship)
What exactly is a labor dispute?
You often encounter the term labor dispute in practice, but the law refers to a disrupted working relationship. An exact definition is lacking. In case law, it often refers to situations in which the trust between employee and employer has disappeared, communication is jammed and cooperation has become virtually impossible.
Examples of situations that can result in conflict:
- A mismatch between personalities or expectations
- Inappropriate behavior or persistent criticism without improvement
- A broken love affair in the workplace
- Poorly functioning teams or clashing leadership styles
HR's role: prevention is better than cure
Before resorting to legal means as an employer, it is important to start the conversation. In many cases, misunderstandings can be resolved through open communication. HR plays a key role here. HR professionals can often mediate in a neutral manner and provide a safe conversational environment in which conflicts can be discussed.
Tip: as an organization, make sure you have a code of conduct and clear agreements on communication and cooperation. That helps to signal in time when things go wrong.
Mediation: a professional solution to persistent tensions
Can't resolve the conflict internally? Then engaging an independent mediator is a sensible step. This can be done on the advice of the company doctor, for example if there is illness due to work stress, but it is also possible to engage a mediator on your own initiative.
Mediation often provides space to express emotions, clear up misunderstandings and make agreements about the future. Sometimes this leads to restoration of the working relationship. In other cases, parting is done by mutual agreement.
When parting is inevitable: the settlement agreement (vso)
Does mediation not lead to a solution? Or is it immediately clear that working together is no longer an option? Then termination by mutual agreement via a settlement agreement (vso) may offer a solution. This avoids legal proceedings and allows for tailor-made agreements on, for example, the termination date, compensation and benefits.
Note: a good vso requires diligence. As an employer, you want to avoid getting into trouble later, for example with the UWV or the subdistrict court. We are happy to help you draw up a watertight agreement.
Dismissal based on disturbed employment relationship
If the parties really cannot work it out and the cooperation has become hopeless, dismissal through the courts may be the last option. This is done on the basis of the so-called g-ground (Article 7:669 paragraph 3 sub g BW).
A judge will terminate the employment contract only if:
- There is actual and lasting disruption of the employment relationship;
- It is not reasonable for the employer to continue employment;
- Reassignment within the organization is not possible;
- There is no notice requirement (for example, due to illness, pregnancy or whistleblower status).
In other words, the file must be in order. That means: document everything, try to resolve the conflict, and show that you have gone through all the steps carefully.
Get proper advice in a labor dispute
Labor disputes can have a major impact on the entire team, the image of your organization and your wallet. So make sure you act well, switch gears on time and stand firm legally.

This blog was written by mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and supports entrepreneurs and employees on a daily basis with a variety of employment law issues. From dismissal cases to drafting watertight contracts and regulations - with his practical and personal approach, he helps employers and employees move forward. Want to know more? Visit Stijn's page.
Arbeidsadvocaat.nl is happy to think with you if you have questions about an ongoing conflict. Please feel free to contact us .
April 2025