25.3.2025
Reinstatement of an Employment Contract on Appeal: An Analysis of the Relevant Circumstances *Labor Law* 2025/17
If the trial court wrongfully terminated the employment contract or wrongfully upheld the termination of the employment contract, this can be remedied on appeal. Pursuant to Article 7:683(3) of the Dutch Civil Code, the court of appeals has the authority to reinstate the employment contract or, alternatively, to award equitable compensation. This article uses 106 decisions from various courts of appeal between 2015 and 2019 to outline the circumstances that influence the court of appeal’s choice between reinstating the employment contract and awarding fair compensation.
1. Recovery pursuant to Article 7:683(3) of the Dutch Civil Code
Pursuant to Article 7:683(3) of the Dutch Civil Code, the court of appeals may order the employer to reinstate the employment contract if any of the following situations arise: i) the employer’s request to terminate the employment contract was wrongfully granted at first instance; (ii) the employee’s request to set aside a summary dismissal was wrongfully denied at first instance; or (iii) the request to reinstate the employment contract was wrongfully denied at first instance. Reinstatement may be retroactive or effective as of a future date.
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