Labour dispute: a practical step-by-step plan for employers

A labour dispute is a difficult and often emotional situation for everyone involved. Sometimes it develops gradually, after months of friction; sometimes there is a sudden escalation, for example after an incident or a negative assessment. We refer to a labour dispute when the working relationship has been disrupted to such an extent that cooperation is no longer a given. Examples include ongoing arguments with a colleague, a fundamental difference of opinion about how the work should be done, or disagreement about assessment results. If the dispute continues for a long time and there is no improvement, it may be necessary to part ways.

What should you do as an employer? We explain the most important steps below.

1. Engage in dialogue at an early stage

Identify early on that something is going on. Do you notice that an employee disagrees with something? Then take their objections seriously. Don’t wait until the situation escalates, but start a conversation in good time. Try to find out where the real problem lies and give the employee the space to tell their story. Many employees just want to be heard – that alone can create space for a solution.

2. Put everything in writing

After the conversation, it is important to clearly record the agreements made. When emotions run high, it is not always easy to remember everything, and misunderstandings can arise. Therefore, after the conversation, send the employee a written summary of what was discussed, including the agreements made: who does what, and when? Ask the employee to confirm this summary. This will prevent any subsequent discussion about what was or was not agreed upon.

3. Investigate redeployment options

See if redeployment within the organisation can offer a solution. Perhaps the employee would function better in another department or in a different role, for example without direct contact with a colleague with whom they do not get along. Investigate whether similar work is available that better suits their abilities. A redeployment investigation is also essential for the personnel file, should you ultimately wish to initiate termination proceedings before the subdistrict court.

4. Offer access to a confidential advisor

If discussions are not sufficient, consider referring the employee to an independent confidential advisor. They can listen to the employee’s story without pressure or judgement. Does your organisation not yet have a confidential advisor? Then arrange for one – it is a valuable resource. A confidential advisor often identifies broader patterns and provides feedback on the perceived work culture. This allows you, as an employer, to take preventive measures to avoid future conflicts.

5. Consider mediation

If mutual consultation does not yield results, mediation may offer a solution. A mediator specialises in guiding conflicts and mediates in a neutral manner between employer and employee. A number of sessions are held to try to reach workable agreements. In some cases, the discussion during mediation shifts from restoring cooperation to a respectful termination of the employment relationship.

6. Settlement agreement

If mediation also fails to produce a solution, you can explore with the employee whether you can terminate the employment relationship by mutual agreement. This is done by means of a settlement agreement. In this agreement, you can make arrangements about a possible severance payment, the notice period and, for example, exemption from work to give the employee the opportunity to look for a new job. Offer the employee a budget to seek legal advice. This promotes an efficient settlement.

7. Dissolution procedure via the subdistrict court

If the parties cannot reach an agreement, the only option left is to go to the subdistrict court. This requires a thorough file. As an employer, you must be able to demonstrate that the conflict is so serious that you cannot reasonably be expected to continue the employment contract. The court will assess whether you, as an employer, have done enough to remedy the situation. So make sure that all previous steps are well documented.

8. Sick leave in conflict situations

It is not uncommon for an employee to report sick in the context of a labour dispute. He or she may be experiencing too much stress, feel unsafe in the workplace, or be using sick leave strategically – for example, to take advantage of the prohibition on termination in the event of illness. If you have any doubts about the validity of a sick leave report, it is important to contact your occupational health and safety service immediately. Have the employee assessed by the company doctor as soon as possible. The doctor will not only give an opinion on the employee’s fitness for work, but can also advise on an appropriate approach to the situation.

9. Seek legal advice in good time

Are you dealing with a labour dispute, or do you see signs that one is imminent? Don’t wait too long. Seek legal advice in good time. We have extensive experience with labour disputes and will guide you as an employer through the entire process. We will help you to clearly understand your rights and obligations and advise you on the best approach for your organisation.

Frequently asked questions / FAQs about labour disputes

How can an employer prove that an employment relationship has been disrupted to such an extent that repair is no longer possible?

An employer can prove that an employment relationship has been disrupted by carefully compiling a file. This means that incidents, conflicts and attempts at repair are recorded in writing. It must also be clear that the disruption is serious and that further cooperation is no longer realistic, even after efforts on both sides. By providing a well-substantiated and factual file, the employer increases the chance that the court will agree to terminate the employment contract.

What are the consequences for the employer if the conflict is not dealt with adequately?

If an employer does not deal with a conflict adequately, the employment relationship may escalate further. Absenteeism may also increase and the employer runs the risk of having a request for termination of the employment contract rejected by the court. Furthermore, the employer may be held liable for damages, such as loss of income or psychological complaints on the part of the employee. By intervening at an early stage, taking the conflict seriously and actively promoting reconciliation, you can avoid lengthy proceedings and high costs.

Advice

It goes without saying that you would prefer to prevent conflicts at work or resolve them quickly and appropriately. Nevertheless, a disrupted working relationship is always a possibility. Therefore, remain alert as an employer. Do you recognise signs that a conflict is imminent? Talk to the employee(s) immediately, try to find out the nature of the friction and work together to find a solution. If it appears that the working relationship cannot be repaired, call in a specialist. A solicitor from Fruytier knows what situations can arise in an employment relationship and can draw up an agreement that can prevent unpleasant consequences. Because employment law changes regularly and because every labour dispute is different, we advise you to consult a solicitor for legal advice about your rights and obligations.

Authors: Employment law solicitors Judy Sliepen and Myrddin van Westendorp