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Settlement agreement, transition allowance, dismissal

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Employee receiving advice about dismissal and a settlement agreement

Dismissal assistance for employees

Have you received a dismissal proposal or settlement agreement? Understand your rights, identify the route that applies to your situation and check the terms before signing.

Received a dismissal proposal? Start here. Have your proposal reviewed free of charge.

A proposal from your employer does not oblige you to agree. Do not sign immediately. First check the stated ground, termination date, compensation, wording concerning WW benefits and all other terms.

Use this page as a guide. The linked pages provide detailed information for each situation or question.

Which dismissal situation applies?

Choose the route that best matches your situation to find the information relevant to your case.

What should you check before signing?

The relevant terms differ from case to case. Check at least the subjects below and obtain advice on provisions that are unusual or unclear.

Termination date and notice period

The termination date should reflect the applicable notice period. An incorrect date may delay the start of WW benefits.

Ground for termination and WW wording

The agreement should make clear that the employer initiated the termination and that there is no urgent reason or culpable unemployment on the employee’s part.

Severance payment

Check not only the statutory transition payment, but also whether the circumstances justify negotiating a higher payment.

Garden leave and salary

Record whether you will continue working or be released from duties while retaining salary and other employment benefits.

Holiday entitlement, bonus and final payment

Specify which outstanding entitlements will be paid and when the final payment will be made.

Non-compete and non-solicitation clauses

Determine whether these clauses will lapse, be limited or remain effective after employment ends.

Certificate, references and communications

Where appropriate, agree in advance on the wording of a certificate, reference and internal or external communications.

Full and final discharge and reflection period

Check which claims you will waive. After signing, an employee generally has a statutory reflection period.

How can our legal specialists assist you?

We can review the proposal, identify risks to WW benefits and income, and explain which terms could be improved. Where necessary, we can also negotiate with your employer on your behalf.

The appropriate approach depends on the case. Sometimes a focused review is sufficient; in other situations a formal response, counterproposal or further legal assistance is advisable.

Frequently asked follow-up question

Must I accept the first proposal?

No. You may request an explanation, obtain legal advice and propose changes. Sign only when the consequences and terms are clear.

About the author

Mr. Edwin van Jaarsveld

Edwin van Jaarsveld has over 20 years of experience with dismissal cases and regularly publishes about them.

Edwin’s expertise can also be found on:

Would you like clarity before signing?

Have your dismissal proposal reviewed in time. This will clarify the risks and which terms may still be improved.

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