international employment law firm alliance L&E Global

The Netherlands: Highest fair compensation ever awarded: €530,000!

The Subdistrict Court of North Holland recently awarded the highest fair compensation ever: €530,000! One day after his manager resigned, the employee was informed that his position had become redundant and was immediately suspended. The Subdistrict Court ruled that the employer had breached the reinstatement obligation.

In its judgment, the Subdistrict Court of North Holland concurred with the New-Hairstyle judgment and included the consequences of the dismissal in the estimate for fair compensation:

“Furthermore, the Subdistrict Court found it plausible that the employment contract would have continued for at least another 1.5 years. (..) Because the employee had been unfairly suspended from his activities, he can no longer make a claim to the favourable tax regime. (..) If the employment contract had continued, at least one more part of the unvested stocks would have been released for vesting.”

The Subdistrict Court, therefore, estimates the fair compensation to be €530,000 gross (1.5 years x €19,290 per month (salary) + 8% holiday pay + €53,000 gross under the tax scheme + €106,000 with regard to the unvested stocks mentioned above).