The Employment 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. This document is particularly relevant in situations involving reorganizations, performance-related exits, or mutual decisions to part ways amicably. The agreement serves to protect both parties' interests by clearly documenting all termination conditions, financial arrangements, and mutual obligations. It must comply with Dutch Civil Code requirements and consider implications for unemployment benefits (WW-uitkering). The document typically includes provisions for transition payments (transitievergoeding), notice periods, final settlements, and confidentiality clauses, while ensuring the employee's rights under Dutch law are protected. Proper drafting is essential as it prevents future disputes and provides clarity on post-employment obligations.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Context of the employment relationship and reasons leading to the compromise agreement
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specific date and conditions of employment termination
5. Financial Settlement: Details of all payments including final salary, transition payment, and any additional compensation
6. Tax Treatment: Tax implications and responsibilities for all payments
7. Final Settlement of Accounts: Treatment of expenses, company property, and outstanding benefits
8. Unemployment Benefits: Confirmation that termination is mutual and employer will cooperate with UWV procedures
9. Confidentiality: Obligations regarding confidential information and terms of the agreement
10. Full and Final Settlement: Mutual waiver of claims and release of liabilities
11. Reference and Communications: Agreement on employment references and internal/external communications
12. Governing Law: Confirmation that Dutch law governs the agreement
13. Signatures: Execution section including date and signature blocks
1. Garden Leave: Terms of garden leave if applicable during notice period
2. Post-termination Restrictions: Non-compete, non-solicitation clauses if existing restrictions are maintained
3. Share Options/Benefits: Treatment of outstanding share options or long-term benefits
4. Legal Fees: Agreement on payment of employee's legal fees for reviewing the agreement
5. Pension Arrangements: Specific provisions regarding pension rights and continued coverage
6. Outplacement Support: Details of any career transition or outplacement services provided
7. International Aspects: Special provisions for cross-border employment situations
8. Works Council: Reference to works council involvement if applicable
9. Intellectual Property: Specific provisions regarding IP rights and obligations post-termination
1. Schedule 1 - Payment Calculation: Detailed breakdown of all financial payments including statutory and contractual entitlements
2. Schedule 2 - Company Property: List of company property to be returned
3. Schedule 3 - Outstanding Benefits: Details of any pro-rated bonuses, vacation days, or other benefits
4. Schedule 4 - Reference Letter: Agreed form of employment reference
5. Schedule 5 - Post-termination Restrictions: Full text of any continuing post-employment obligations
6. Appendix A - Existing Employment Contract: Copy of relevant terms from existing employment agreement
7. Appendix B - Resignation Letter: Template or copy of formal resignation letter
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