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Mutual Termination Of Employment for the Netherlands

Mutual Termination Of Employment Template for Netherlands

A Mutual Termination of Employment Agreement under Dutch law (vaststellingsovereenkomst) is a formal document that establishes the terms and conditions for ending an employment relationship by mutual consent. This agreement, governed by Dutch employment law, particularly Book 7 of the Dutch Civil Code, outlines the termination date, financial settlements, continuing obligations, and other relevant terms. It includes mandatory provisions such as the 14-day reflection period and typically addresses transition payments, final settlements, company property return, and confidentiality obligations. The document ensures compliance with Dutch employment regulations while protecting both employer and employee interests.

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Mutual Termination Of Employment

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What is a Mutual Termination Of Employment?

The Mutual Termination of Employment agreement is used in the Netherlands when both employer and employee agree to end their employment relationship amicably. This document is particularly relevant when parties wish to avoid the formal dismissal procedure through the UWV (Employee Insurance Agency) or court system. It sets out clear terms for the separation, including financial arrangements, continuing obligations, and practical matters such as the handover of work and company property. The agreement must comply with Dutch employment law, including mandatory provisions like the statutory reflection period and transition payment calculations. It serves as a comprehensive record of the termination arrangements and provides legal certainty for both parties. This type of agreement is commonly used during reorganizations, when career paths diverge, or in situations where a change benefits both parties.

What sections should be included in a Mutual Termination Of Employment?

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration numbers

2. Background: Brief context of the employment relationship, including start date and current position

3. Definitions: Definition of key terms used throughout the agreement

4. Termination Date: Specific date when the employment relationship will end

5. Financial Settlement: Details of final salary, holiday pay, transition payment, and other financial entitlements

6. Company Property: Arrangements for returning company property and equipment

7. Confidentiality: Ongoing obligations regarding confidential information

8. Final Settlement: Confirmation that this agreement represents full and final settlement of all claims

9. Reflection Period: Statement of the statutory 14-day reflection period

10. Reference and Communications: Agreement on how the departure will be communicated and reference arrangements

11. Governing Law: Confirmation that Dutch law governs the agreement

12. Signatures: Execution blocks for both parties

What sections are optional to include in a Mutual Termination Of Employment?

1. Non-Competition and Non-Solicitation: Continuation or termination of existing restrictive covenants, used when original employment contract contained such provisions

2. Insurance and Benefits: Arrangements for continuing or terminating insurance coverage and benefits, used when specific benefit arrangements need to be addressed

3. Share Options/Incentives: Treatment of existing share options or other incentive schemes, included when employee participates in such schemes

4. Outplacement Support: Details of any career transition support offered, included when employer provides such assistance

5. Legal Fees: Agreement regarding payment of legal fees for reviewing the agreement, included when employer will contribute to employee's legal costs

6. Handover: Specific arrangements for handover of work and responsibilities, used for senior or specialized positions

7. Press Release/Announcements: Agreed form of external/internal communications, particularly relevant for senior positions

What schedules should be included in a Mutual Termination Of Employment?

1. Schedule 1 - Financial Statement: Detailed breakdown of all financial payments including salary, holiday pay, transition payment, and other benefits

2. Schedule 2 - Company Property List: Itemized list of company property to be returned

3. Schedule 3 - Continuing Obligations: List of specific obligations that continue post-employment

4. Appendix A - Agreed Form Reference: Template of agreed employment reference

5. Appendix B - Communication Template: Agreed format for internal and/or external announcement of departure

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Netherlands

Cost

Free to use
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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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