Tenancy law for commercial space Dutch law

Commercial Property Lease in the Netherlands

The lease law in the Netherlands concerning the renting of commercial property is by no means straightforward.

In Dutch lease law, a distinction is made between commercial property as defined in Article 7:290 of the Civil Code (BW) on the one hand, and other spaces as defined in Article 7:230a BW on the other. In both cases, it involves renting commercial space, but different lease regulations apply depending on the nature of the business conducted in the rented space.

Below, we will explain when it is considered 290-commercial property and 230a-space.

Article 290 BW Commercial Property

 
The legal rules of Article 7:290 BW apply to the following types of commercial properties: retail businesses, restaurants or cafes, takeout or delivery services, or artisan businesses. The key factor is whether the leased space contains a so-called:
'a publicly accessible premises for the direct delivery of movable goods or services.'

In the case of Article 290 BW commercial property, the tenant generally has the right to a minimum lease period of 2 x 5 years, and this lease period can only be shortened in exceptional cases. Seek advice from our lease law specialists regarding this matter.

Article 230a BW Space

If the property does not fall under the definition of commercial property as per Article 7:290 BW, it is considered Article 7:230a BW commercial property. This category primarily includes office space but also factory space, workshops, storage and parking facilities, and spaces for certain professionals such as beauticians, lawyers, etc.
The main difference between 290-commercial property and 230a-space is that tenants of 230a-space have eviction protection but not lease protection. Therefore, it is essential for tenants of such spaces to carefully consider the duration of their lease and, if possible, include an option for extension in the lease agreement. Seek advice from our lease lawyers regarding this matter.

How can our lease law lawyers assist you?

If you are a business owner renting commercial space, you may encounter various legal issues, such as rent increases, defects, renovations, and more.
In such cases, it is crucial to protect your interests with the right legal knowledge or legal representation.
Our lawyers and attorneys have extensive knowledge of lease law and practical experience in negotiating and litigating lease disputes. We provide services nationwide and can assist with all lease disputes in the Netherlands.

What types of commercial property disputes can we help you with?

Our specialized lawyers and attorneys can assist you with all lease disputes. Here are a few examples.

Entering into a lease agreement
If you want to enter into a lease agreement but have doubts about the terms, we can review the lease conditions for you and negotiate better terms with the landlord.

Lease agreement for hospitality: A lease agreement for a hospitality business, where the entire business is leased, is often referred to as a lease agreement. We can also assist with such cases.

Rent increase or decrease
The landlord wants to increase the rent. However, this is not always possible. We help you prevent or reduce rent increases where possible.

Defects in commercial property
You may not be the first tenant to encounter defects in the leased property. We assist you in getting the landlord to resolve these issues, for example, by legally contacting the landlord or taking legal action against them.

Assignment of lease
You rent a retail business space (shop or restaurant) and want to transfer your lease rights to the buyer of your business. However, the landlord refuses. We help you achieve the transfer regardless.

Renovation of commercial property
The landlord wishes to renovate your commercial space. Temporary closure and/or disruption may occur. We use legal means to oppose the renovation or minimize and prevent any damage or disruption.

Subleasing commercial property + model contract
Sometimes, subleasing commercial property is allowed, but not always. Unauthorized subleasing can have serious consequences. Therefore, consult our specialists for help and read: subleasing commercial property or order a subleasing commercial property model contract from us.

Recovering security deposit

Do you need help in recovering your security deposit? Our lease specialists can assist you.
Terminating a lease agreement, order a model letter.
If you, as a tenant or landlord, want to terminate the lease, order one of our model letters below:

• Termination of commercial property lease by tenant
€ 32.50

• Sample letter for termination of commercial property lease under Article 7: 290 BW
€ 45.00

or, reach mutual agreement with your tenant or landlord for the termination of the lease and record the terms in a lease termination agreement:

• Lease Termination Agreement
€ 42.50

Don't hesitate, seek advice about tenancy law in the Netherlands

Do not delay in seeking specialized assistance for lease disputes related to commercial property. Call our lease specialists directly at (020 – 6890 863) or email.

Dutch employment termination laws

Termination of Employment Contract in the Netherlands - When is it possible? What are your rights?

There can be various reasons why an employer seeks to terminate an employment contract. For example, the company may have encountered financial difficulties, or the employee may not be performing well. It is important to know that as an employee, you (almost) always have the opportunity to defend yourself against a potential termination of the employment contract. It is crucial to make the best use of this opportunity. Of course, our legal experts can assist you if termination of the employment contract is looming.
In the following, we will briefly discuss when and how the termination of an employment contract can take place.

a. Probationary Period

During the agreed probationary period, either party can unilaterally terminate the employment contract without cause and with immediate effect. If a probationary period is agreed upon, the employment contract can also be terminated by either party before the actual commencement of work. For this termination of the employment contract, no permission from the UWV (Employee Insurance Agency) or the labor court is required.

b. Fixed-term Employment Contract

A fixed-term employment contract expires automatically when the agreed-upon time period has elapsed unless termination is prescribed by a collective labor agreement (CAO) or individual agreement (click for more information on: terminating a fixed-term employment contract). The extended fixed-term contract also expires automatically. The contract can be extended twice, provided that the total contract duration does not exceed three years. However, in the case of a third extension or if the total duration exceeds three years, the employment contract is automatically converted into an indefinite-term contract.

c. Retirement Age

Reaching the retirement age means the end of an indefinite-term employment contract if agreed upon. If not agreed upon, the employer is allowed to terminate the employment contract without permission, either on or after the day of reaching the retirement age.

d. Immediate Dismissal

If a compelling reason arises, the employment contract can be unilaterally terminated with immediate effect without following the notice period. This is known as immediate dismissal. For a valid immediate dismissal, the reason must be immediately communicated to the employee, and the dismissal must follow promptly thereafter.
However, the "compelling reason" must also meet the strict scrutiny of the court. In other words, the employee must have committed a severe misconduct for the court to uphold an immediate dismissal. Examples include theft or violence in the workplace. A lightly given immediate dismissal will not result in the termination of the employment contract. In the event this happens to you, inform your employer by registered letter that you dispute the validity of the immediate dismissal and, therefore, the termination of the employment contract, and that you are available for work. If the employer does not withdraw the dismissal, you can initiate a wage claim procedure with the help of our legal experts and challenge the termination of the employment contract.

e. Termination of Employment Contract by Mutual Agreement

If the employer and employee explicitly agree to terminate the employment contract and both desire it, it is considered a termination of the employment contract by mutual consent. Usually, parties enter into a written termination agreement or settlement agreement for this purpose. With such an agreement, you, as the former employee, are entitled to unemployment benefits (WW-uitkering), provided it is drafted in a WW-compliant manner. Therefore, it is essential to have the agreement reviewed before giving your actual consent to termination of the employment contract.
Another way to terminate by mutual agreement is through the employee's written consent to termination by the employer.
After concluding a termination agreement/settlement agreement or providing written consent to termination, the employee has 14 days to reconsider and revoke the agreement or consent without specifying reasons.

Procedures for Termination of Employment Contract

In principle, either party can terminate the employment contract by giving notice.
The employer can only terminate with a valid reason, and if reassignment of the employee to another suitable position is not possible. The law provides a non-exhaustive list of valid reasons, which, in brief, include: a) economic reasons; b) prolonged illness; c) frequent absenteeism due to illness; d) poor performance; e) blameworthy conduct by the employee; f) conscientious objection by the employee to the work; g) disrupted working relationship; h) other circumstances.

UWV Procedure

For a valid termination by the employer without the employee's consent, the employer needs a dismissal permit from the UWV if the grounds for termination are based on economic reasons or prolonged illness exceeding 2 years. After obtaining the permit, which is valid for 4 weeks, termination is possible. The applicable notice period must be observed, and the time taken for the procedure can be deducted from it. Failure to observe the notice period does not invalidate the termination but may lead to damages.
The employer applies for the dismissal permit at the UWV Employee Insurance Agency. The UWV has developed specific forms for this purpose, allowing the employer to substantiate the dismissal request. In the case of economic reasons, the dismissal request must comply with the "reflection principle." In essence, it means that, among employees within a certain age category and the same job position, the one with the shortest tenure is the first to be considered for dismissal.

It goes without saying that the employee should carefully examine the permit applications to assess defense options. Our legal experts can assist you with this and, if necessary, represent you in your defense.

If the UWV Employee Insurance Agency does not grant the dismissal permit, the termination of the employment contract is not allowed, and the employment contract remains in effect.

The employee is entitled to a severance payment (transitievergoeding) if the employer terminates the employment contract with the UWV's permission.

Termination Procedure at the Subdistrict Court (kantonrechter)

If the employer wishes to terminate an employment contract based on the circumstances mentioned under c to h and the employee does not consent to termination, the employer must apply to the subdistrict court (kantonrechter) to request the termination of the employment contract: dissolution of the employment contract (see also termination procedures). If the subdistrict court grants the requested dissolution, the employee is entitled to a severance payment (transitievergoeding). Only in exceptional cases, if there is serious culpable conduct or omission by the employer towards the employee, can the court grant additional compensation (not in cases of "ordinary" culpable conduct).

The employee can also file a request for dissolution of the employment contract with the subdistrict court if circumstances are such that the employment contract should be terminated promptly or shortly, in the interest of fairness. In this case, the employee is not entitled to a severance payment. In exceptional cases, if there is serious culpable conduct or omission by the employer towards the employee, the court may grant compensation based on fairness.

Get immediate assistance from an employment termination specialist; avoid costly mistakes!

In the case of employment contract termination, the stakes are high. Therefore, it is wise to consult our employment termination specialists.
Call for a FREE initial consultation: 0900 – 123 73 24 or email us regarding employment contract termination.

Rental Property Defects: Know Your Rights in the Netherlands

"If there are 'defects' in the property you have rented, you, as a tenant, can demand that these defects be rectified by your landlord. This legal rule has the following exceptions:

• Rectifying the defects is impossible, or the expenses for doing so are so high that it cannot reasonably be expected from the landlord.
• If you, as a tenant, have caused the defect yourself.
• It concerns minor repairs, such as replacing sockets and faucets, which are the responsibility of the tenant.
• If the rental agreement deviates from this legal regulation.

What are defects?

Important in all of this is what is meant by the term 'defect.'
In simple terms, anything that deviates from what you could expect when entering into the rental agreement and causes a loss of enjoyment of the rental property is considered a defect.
Defects can include, for example: structural defects, pests, a leaky roof, poor maintenance, severe drafts, moisture and mold formation, the inability to obtain an operating permit due to the lack of an emergency exit, a poorly maintained interior courtyard of a shopping center, and disturbances.
As mentioned above, in a commercial property lease, it is possible to deviate from the legal regulation. Most landlords will include provisions, for example, in the general rental conditions, stating that the obligation to repair defects does not apply to all defects. However, such a deviation from the legal rules is not allowed if the landlord was aware of or should have been aware of these defects when entering into the rental agreement.

Self-remedy.

Can you, as a tenant, remedy the defects for which the landlord has an obligation to repair, or have them remedied if the landlord does not?
Under rental law, you, as a tenant, can remedy the defects yourself and recover the reasonable costs incurred from the landlord, deducting these costs from the rent if they are reasonable. However, the landlord must first be in default. Therefore, as a tenant, it is advisable to first send the landlord a 'registered' letter, setting a deadline for rectifying the defect. In the event that the landlord does not rectify the defect within the reasonable stipulated period, they are in default.

Obligation to compensate for damages

If there is a defect, it can also result in damages to the tenant. For example, your inventory and business inventory may be damaged due to leakage, or you may have had to close your business for some time, resulting in loss of profit. In these cases, the landlord is also liable for the so-called consequential damages in the following cases:

1. The defect occurred after the conclusion of the lease agreement and can be attributed to the landlord (think, for example, of water damage due to deferred maintenance).
2. If the defect was already present at the time of entering into the lease agreement, and the landlord knew or should have known about it.
3. If the landlord informed the tenant at the time of entering into the lease agreement that the property did not have the defect.
However, if, for example, the roof of the rented property is blown off during a severe storm, this cannot be attributed to the landlord, and therefore, consequential damages cannot be claimed from them. The landlord can invoke 'force majeure' in such cases. However, they cannot do so if the detachment of the roof is largely caused by poor roof maintenance.

The aforementioned legal obligation to compensate for damages can also be deviated from in the lease agreement, which, as you may not be surprised to hear, often happens in favor of the landlord. Deviation is not possible, however, if the landlord knew or should have known about the defects at the time of entering into the lease agreement.
A landlord's claim to exclusion of liability for damages sometimes fails even if they fail to rectify a defect for which they are responsible.

Rent reduction in case of defects

In the event that you, as a tenant, have reduced enjoyment of the property due to a defect for which the landlord is responsible, you can request a proportional reduction in the rent from the court. The reduced rent can be claimed from the day the landlord was sufficiently aware of the defect and can last until the defect is rectified. Therefore, it is advisable to inform your landlord of the defect as soon as possible by registered letter.

For information on liability for defects in a purchased house or commercial property, click on: liability for hidden defects or hidden defects in a house, or click for legal assistance from lawyers and legal experts in hidden defects in a house.

Sample demand letter for repair of rental property defects

A first important step in getting the defects in your rental property repaired is sending a legally correct demand letter to your landlord. Our legal experts have prepared the right model letter for this purpose, which you can order below.

Renovation

It may be that the landlord proposes a renovation due to aging or defects in the property. This could involve significant renovations, but also, for example, the installation of high-efficiency glass or solar panels, or a rooftop terrace. Read more about your rights and obligations in such cases on our renovation webpage.

Sample lease termination agreement
It may be that you do not want to argue or litigate with your landlord over the defects in the rental property, but prefer to terminate the lease agreement. In that case, you can order a legally correct lease termination agreement from us. You can order the model agreement by clicking on: sample lease termination agreement.

Conclusion and legal assistance in case of defects

If your landlord refuses to repair a defect, send them a registered letter. Demand that they rectify the defect as soon as possible. If your landlord refuses to carry out a repair, you can threaten to have the repair done yourself and deduct the costs from the rent. You can also threaten to claim compensation for damages and rent reduction.
Recht & Raad can provide you with legal assistance in such matters and all your rental law issues. We provide legal assistance to entrepreneurs and private individuals. Call us directly at 020 6890863 or email us."

Dismissal with a Settlement Agreement in the Netherlands

In the realm of employment law in the Netherlands, the term "dismissal" can invoke feelings of uncertainty and stress for both employers and employees alike. However, there is a valuable tool that can help mitigate the challenges associated with dismissal: the settlement agreement. In this blog post, we will explore how skilled lawyers from Recht & Raad can assist employers and employees in the Netherlands in negotiating and advising on a settlement agreement, emphasizing the importance of this legal instrument in resolving employment disputes.

Understanding Dismissal and the Settlement Agreement

Dismissal, often referred to as "termination" in the employment context, is a pivotal moment in the employment relationship. It can result from various reasons, such as redundancy, poor performance, or misconduct. When faced with dismissal, both employers and employees can find themselves in complex legal territory.

What is a settlement agreement?

A "settlement agreement," also known as a "termination agreement" or "compromise agreement," is a legally binding document that outlines the terms and conditions under which employment ends. It serves as a negotiated agreement between the employer and employee, allowing them to resolve disputes without the need for costly and protracted legal proceedings.

The Role of law office Recht & Raad

Recht & Raad is a leading firm of expert lawyers in the Netherlands specializing in employment law. Our seasoned legal professionals understand the intricacies of dismissal and settlement agreements, ensuring that both employers and employees receive comprehensive guidance throughout the process.

What can we do for you?

Expert Advice: Our attorneys offer expert advice to employers and employees, explaining their rights and obligations under Dutch employment law. This guidance is crucial in making informed decisions during a dismissal process.

Negotiation: One of the key aspects of a settlement agreement is negotiation. Our lawyers excel in negotiating favorable terms for our clients, including financial compensation, reference letters, and confidentiality clauses. Through effective negotiation, we strive to reach an agreement that is acceptable to all parties involved.

Drafting Settlement Agreements: Crafting a settlement agreement that is legally sound and protects the interests of both parties requires expertise. Our lawyers are skilled in drafting these agreements to ensure they comply with Dutch employment laws and regulations. For employees we advise how to make the agreement proof for an unemployment-benefit.

Mediation and Resolution: In some cases, disputes can be resolved through mediation rather than litigation. Recht & Raad can facilitate mediation discussions to help employers and employees find common ground and reach an agreement amicably.

Why Choose Recht & Raad?

Recht & Raad's commitment to excellence and years of experience ( over 25 years ! )in employment law make us the go-to choice for employers and employees facing dismissal in the Netherlands. Our lawyers possess a deep understanding of the legal intricacies surrounding dismissal and settlement agreements, ensuring that our clients receive the best possible guidance and representation.

Do not hesitate, juts call or mail us! First advice = FREE

In conclusion, navigating dismissal with a settlement agreement in the Netherlands is a complex but essential process. Recht & Raad's team of dedicated legal professionals is here to assist both employers and employees in achieving a fair and mutually beneficial resolution. With our expertise, you can confidently face dismissal situations, knowing that you have skilled lawyers by your side. Don't hesitate to reach out to Recht & Raad for the guidance and support you need during this challenging time. Call 020 6160120 or mail.us.  First advice = FREE of charge.