What does summary dismissal entail?

Summary dismissal is the immediate termination of an employment contract by the employer for urgent reasons (Articles 7:677 and 7:678 of the Dutch Civil Code). The employer must immediately and clearly communicate the compelling reason to the employee, preferably in writing and ideally based on a thorough prior investigation. The law lists a number of non-exhaustive grounds for summary dismissal, such as theft or serious misconduct on the part of the employee (Article 7:678 of the Dutch Civil Code). If the formal requirements for summary dismissal are not met, the employer may be held liable for damages (in the form of, among other things, fixed compensation and/or equitable compensation).