The Compromise Agreement (Vaststellingsovereenkomst) is a crucial document in Dutch employment law used when an employer and employee agree to terminate their employment relationship by mutual consent. It's typically used in situations involving redundancy, performance issues, or mutual agreement to part ways, providing legal certainty to both parties. The document must comply with Dutch Civil Code requirements and includes essential elements such as the termination date, financial arrangements, final settlement terms, and various legal warranties and indemnities. This agreement is particularly important in the Netherlands due to the country's strict employment protection laws and the need for clear documentation of mutually agreed termination terms. It serves as protection for both parties and often involves review by legal advisors to ensure compliance with Dutch employment regulations.
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1. Parties: Identification of the employer and employee with full legal names and addresses
2. Background: Context of the employment relationship, reason for termination, and basis for the compromise agreement
3. Definitions: Key terms used throughout the agreement including Employment, Termination Date, Settlement Sum, etc.
4. Termination of Employment: Formal confirmation of the termination date and method of termination
5. Settlement Payment: Details of the settlement sum, payment terms, timing, and tax treatment
6. Full and Final Settlement: Confirmation that the agreement represents full and final settlement of all claims
7. Waiver of Claims: Employee's waiver of rights to bring claims against the employer
8. Company Property: Requirements for return of company property and information
9. Confidentiality: Obligations regarding confidentiality of the agreement and company information
10. Reference: Terms regarding employment references and internal/external communications
11. Tax Indemnity: Employee's indemnity for tax liabilities related to the settlement payment
12. Governing Law: Confirmation that Dutch law governs the agreement
13. Signing: Execution provisions and signature blocks
1. Garden Leave: Include when employee is placed on garden leave before termination
2. Post-termination Restrictions: Include when enforcing or varying existing post-employment restrictions
3. Legal Fees: Include when employer is contributing to employee's legal costs
4. Outplacement Support: Include when providing career transition services
5. Share Options/Benefits: Include when addressing treatment of existing share options or benefits
6. Ongoing Cooperation: Include when employee's assistance may be needed post-termination
7. Medical Insurance: Include when continuing or terminating medical benefits
8. Pension Arrangements: Include when specific pension considerations apply
9. Works Council: Include when works council involvement is relevant
1. Schedule 1 - Payment Calculation: Detailed breakdown of the settlement payment components
2. Schedule 2 - Company Property List: Inventory of company items to be returned
3. Schedule 3 - Reference Template: Agreed form of employment reference
4. Schedule 4 - Existing Employment Contract: Copy of the original employment agreement
5. Schedule 5 - Resignation Letter: Template or copy of formal resignation letter
6. Schedule 6 - Certificate of Service: Official record of employment service
7. Appendix A - Legal Advice Certificate: Confirmation from legal advisor regarding employee consultation
8. Appendix B - Post-termination Restrictions: Details of any continuing restrictive covenants
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