What is a termination agreement?

In a termination agreement (also known in Dutch as a vaststellingsovereenkomst), the parties agree on when and under what conditions an employment contract will be terminated. Such a dismissal arrangement is laid down in a written document, which in practice is referred to as a Termination Agreement or vaststellingsovereenkomst. Both terms are used to describe a mutual termination of employment.

The severance payment in a Termination Agreement

Various arrangements can be made in a Termination Agreement. The most important element of a dismissal arrangement is often the amount of the severance payment.

Dutch law provides for a statutory severance payment, known as the transition payment (transitievergoeding). However, it is important to note that the statutory rules on the transition payment are not mandatory law. Employer and employee are free to agree on any severance amount, whether higher or lower than the statutory transition payment.

Important: our dismissal specialists are often able to negotiate a significantly higher severance payment for employees than the statutory amount. Ask our specialists what is possible in your specific situation.

What is included in a Termination Agreement?

A Termination Agreement may include agreements on many issues, such as:

• The amount of the severance payment (if any)

• Whether the employee will be exempted from work

• Whether unused leave days will be paid out, and if so, how many

• Which company property (laptop, car, etc.) must be returned or may be retained

• How and when colleagues will be informed of the dismissal

• Whether the employee is entitled to a positive reference letter and positive references

• What confidentiality obligations apply regarding company information

• Whether an existing non-competition or non-solicitation clause will lapse

• Whether the employer reimburses the costs of legal assistance

• Whether a clause of full and final discharge (final settlement) is agreed

Avoid costly mistakes!

Have your Termination Agreement reviewed FREE OF CHARGE by our dismissal specialists.

What can our dismissal lawyers do for you?

First of all, we can assess whether your employer is legally entitled to dismiss you. Does the employer have sufficient legal grounds for termination?

We can also examine whether there are legal options to prevent dismissal.

Negotiating the best dismissal arrangement

If opposing the dismissal is not legally feasible, or if you prefer a strong exit arrangement, we can negotiate with your employer on your behalf to achieve the best possible Termination Agreement. This may include, for example, a maximum severance payment, an outplacement budget, exemption from work with continued salary payment, and a positive reference letter..


Important for expats!

In practice, our dismissal specialists often succeed in negotiating a substantially higher severance package than the legal minimum — especially for expats with strong negotiating positions.

Legal assistance often at no cost to you

When we negotiate a dismissal arrangement with your employer on your behalf, we can usually do so at the employer’s expense. We strongly advocate that the employer covers the legal costs. In most cases (approximately 95%), employers are willing to reimburse these costs, meaning the employee pays nothing.

Don’t hesitate – ask our specialists for advice!

Our specialists have been over 20 years of experience in dismissal cases, particularly involving Termination Agreements. Over the years, we have successfully assisted thousands of employees to their full satisfaction.

Do you want the best possible outcome?

Contact our specialists immediately.
The first consultation is completely free. And including a free check of your dismissal arrangement!

Call now: +31 (0)20 6160 120 or send us an email.

Would you like to have your settlement agreement checked for free?