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Supreme Court rules on i-ground: what does this mean for employers and employees?

On 18 July 2025, the Supreme Court (ECLI:NL:HR:2025:1171) ruled for the first time on the so-called i-ground for dismissal (Section 7:669(3)(i) of the Dutch Civil Code). This ground makes it possible to terminate an employment contract based on a combination of several partially present grounds for dismissal. The ruling provides clarity on how this cumulative ground should be applied in practice.

The “i-ground”

The “i-ground” was introduced in 2020 with the Balanced Labour Market Act (WAB). The i-ground means there may be reasonable grounds for dismissal if several grounds for dismissal are partially present. This is without any one being sufficient on its own. It involves a combination of grounds like poor performance (d-ground), culpable conduct (e-ground), and a disrupted employment relationship (g-ground). Although none are sufficient on their own, they may collectively be sufficient grounds for dismissal.

When applying the i-ground, the court may award additional compensation: the so-called cumulative compensation (Section 7:671b(8) of the Dutch Civil Code). This amounts to a maximum of 50% of the transition payment. Moreover, it compensates for the fact that dismissal is based on a combination of several “near-grounds”.

The case: employee at Profoto

The case concerned an employee working at Profoto as an image processing developer since 2018. During a stay in Iran, he worked remotely without permission. Additionally, he took an expensive camera belonging to the company without consulting anyone. When his employer asked him to return to the Netherlands (even offering a plane ticket), he refused.

He later reported sick with burnout symptoms, but failed to provide convincing medical evidence. He also failed to attend an important meeting on 30 January 2023, despite repeated requests from his employer. This ultimately led to his summary dismissal.

The court’s ruling

The court ruled that the employee’s behaviour was not so reprehensible as to constitute grounds for dismissal. This was because there were previous instances within the company of employees taking equipment without formal permission or working remotely. Furthermore, the employment relationship had not yet been disrupted to such an extent that restoration was impossible.

There was still room for a constructive discussion. Nevertheless, the court ruled that the combination of some culpability and a partially disrupted employment relationship was sufficient grounds for dismissal on the i-ground. Accordingly, the employment contract was terminated.

Judgment of the Supreme Court

The Supreme Court emphasised the importance of careful substantiation. If a court applies the i-ground, it must clearly indicate the grounds on which the combination of grounds is based.

In this case, the court of appeal had ruled there was a combination of culpable conduct and a partially disrupted employment relationship. However, at the same time, it found there was no culpable conduct within the meaning of the “e” ground. In doing so, the court of appeal failed to sufficiently demonstrate what the culpable conduct did consist of. This, according to the Supreme Court, is insufficient substantiation for applying the i-ground.

Furthermore, the Supreme Court confirmed that even when applying the i-ground, the employer’s obligation to redeploy must be examined. The court must assess whether the employer has done enough to redeploy the employee within the company before it can proceed with termination.

An important aspect of the ruling is that the court may also apply the i-ground and associated cumulative compensation ex officio. Therefore, the employee does not have to explicitly request this. If the court of appeal wishes to apply the i-ground after the subdistrict court has previously rejected the request for termination, the employer must be given the opportunity to withdraw that request. In that case, the employee remains in service.

A similar situation arises when the subdistrict court has terminated the employment contract on other grounds and the court of appeal subsequently rules that only the i-ground with cumulative compensation is appropriate. Thus, the employer must be given the opportunity to withdraw the request. If it fails to do so, the court of appeal may proceed to reinstate the employment contract. Alternatively, it may award fair compensation to the employee on the basis of Section 7:683(3) of the Dutch Civil Code.

Conclusion

With this ruling, the Supreme Court has outlined clear guidelines for the application of the i-ground. A solid substantiation remains essential, even in cases involving a combination of circumstances.

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Supreme Court rules on i-ground: what does this mean for employers and employees?