The Retrenchment Letter is a crucial document in Dutch employment law, used when an employer needs to terminate employment due to organizational, economic, or technical reasons. It serves as the formal notification of redundancy and must comply with strict legal requirements under Dutch law, including the Dutch Civil Code and the Collective Redundancy Notification Act where applicable. The letter should detail the reasons for redundancy, notice period, transition payment calculations, and available support measures. It's particularly important that the document addresses all statutory requirements, including proper notice periods and the transition payment (transitievergoeding). The letter may need to reference consultation with works councils or trade unions in cases of collective redundancies, and must align with UWV guidelines if their approval is required for the redundancy process.
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1. Company Letter Header: Official company letterhead with full legal entity details
2. Employee Details: Full name, position, and address of the employee
3. Redundancy Decision: Clear statement of the redundancy decision and its business rationale
4. Legal Basis: Reference to relevant Dutch employment law provisions and company policies
5. Last Working Day: Specification of the employee's last working day and notice period
6. Financial Entitlements: Details of the transition payment (transitievergoeding) and other financial entitlements
7. Company Property: Instructions regarding the return of company property and handling of accounts/access
8. Final Settlement: Information about the final salary payment and leave settlement
9. Support Measures: Overview of support provided, such as outplacement assistance
10. Next Steps: Clear outline of immediate actions required from the employee
1. Collective Redundancy Information: Required when part of a larger redundancy program affecting 20+ employees
2. Works Council Statement: Include when works council was consulted in the decision-making process
3. Alternative Position Offer: Include if suitable alternative positions are available within the organization
4. Non-Compete Release: Include if releasing the employee from existing non-compete clauses
5. Special Project Handover: Include if specific project handover arrangements are necessary
6. Reference Letter Offer: Optional offer to provide a reference letter or certificate of employment
1. Calculation of Transition Payment: Detailed breakdown of the transitievergoeding calculation
2. Final Settlement Overview: Itemized list of final payments, including salary, leave, and other benefits
3. Company Property Checklist: List of company items to be returned
4. Employee Benefits Summary: Overview of benefit terminations and continuation options
5. Outplacement Support Details: Specific information about available outplacement services
6. UWV Information Package: Information about unemployment benefits and registration procedures
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Technology
Manufacturing
Retail
Professional Services
Healthcare
Education
Construction
Telecommunications
Energy
Transportation
Media and Entertainment
Hospitality
Real Estate
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Personnel Administration
Executive Leadership
Finance
Compensation and Benefits
Relevant Roles
Human Resources Director
Legal Counsel
HR Manager
Employment Law Specialist
HR Business Partner
Compensation and Benefits Manager
Employee Relations Manager
HR Operations Manager
General Counsel
Chief Human Resources Officer
Personnel Administrator
HR Compliance Officer
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