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What is a Settlement agreement or Termination agreement? ( Dismissal by mutual consent )
Where people have a conflict with each other, they can choose to submit their case to the court. But that's not always the best way to resolve a dispute. Resolution through the courts takes time and money and often there are no real 'winners'. A good alternative is to try to resolve a dispute together, if necessary with lawyers or a mediator. If that succeeds, it is wise to record the agreed solution in a document. That document is usually referred to as a "settlement agreement" , or "termination agreement" or "compromise agreement".
How is the settlement agreement used in the event of dismissal?
A settlement agreement is a document in which the termination of the employee's employment contract is arranged. This is usually at the initiative of the employer and ultimately with the approval of the employee. The settlement agreement can be used by the employee to apply for unemployment benefits from the UWV ( if drawn up and applied correctly, ask our advice ).
What is in a Dutch settlement agreement?
A number of things are required to be mentioned. For example, the name and address details of both the employer and employee must be included in this and the date on which the settlement agreement was concluded. The date on which the employment contract ends must also be stated.
If the settlement agreement must entitle the employee to receive unemployment benefits, it must also be stated that the initiative is taken by the employer, that the reason for dismissal is not attributable to the employee and that the notice period applicable to the employer must be observed.
The settlement agreement Netherlands often also regulates the following subjects:
Severance pay: is the employee entitled to a severance payment or transition payment? If so, how high should it be?
Work exemption: is the employee exempt from work? If so, how long? And will the accrued vacation days expire?
Does the non-competition and non-solicitation clause lapse?
Returning company property: which company property must the employee surrender? Can he possibly keep the lease car, telephone, laptop?
Certificate and references: does the employee receive a positive certificate, or a neutral one? And what about references?
Outplacement budget: is the employee offered an outplacement budget and if so, how much?
Legal costs: does the employer contribute to the employee's legal costs?
Study costs: does the employee still have to pay back study costs or are they waived?
Final discharge: do the parties agree on a final discharge, or not?
How high is the transition payment (severance payment) if I am fired?
The amount of the transition payment that your employer pays in the event of dismissal is determined on the basis of 2 components: your monthly salary and the duration of the employment. The transition payment amounts to 1/3 of a gross monthly salary per year worked. But a higher fee is often negotiable, our specialized lawyers can help you with that.
Who makes a settlement agreement?
The employer is responsible for drawing up a good, legally valid settlement agreement. This can be drawn up by the employer himself, but a good template can also be used. Various model documents can be found on our website. As an employer, you can download this directly and provide it with the correct data. Then you send it to the relevant employee.
Why choose an agreed settlement?
A settlement agreement has advantages for both the employer and the employee. The employer benefits from opting for a settlement agreement, because this means that he does not have to start dismissal proceedings for the employee. Only the completed document signed by both parties is sufficient. Opting for the settlement agreement also speeds up the process and offers the employer more certainty. It is an advantageous option for the employee, because the document entitles the employee to unemployment benefits. After all, the document states that the employee is not to blame in the event of dismissal and a higher severance payment can often be negotiated with a settlement agreement.
Why opt for help from Vaststellingovereenkomst.org?
Our organization is the number 1 website in the field of the settlement agreement. We are fully specialized in this subject, have more than 25 years of experience and successfully completed more than 15,000 cases. Therefore choose our lawyers if you want the best result.
In addition, we can often help employees free of charge!
Curious about what you should pay attention to in a Settlement Agreement? And how can we help you achieve the best result? Please call ( 020 - 6160 120 ) or mail us.
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