Severance Agreement Template for Netherlands

A Severance Agreement is a legal contract between an employer and departing employee in the Netherlands that outlines the terms and conditions of their employment separation. It typically includes the final payment amount (transitievergoeding), benefits continuation, and any specific obligations both parties must follow after the working relationship ends.

Under Dutch labor law, these agreements often cover important details like non-compete clauses, confidentiality requirements, and the employee's waiver of claims against the employer. The agreement must comply with strict local regulations, including mandatory reflection periods and clear documentation of the termination grounds as defined in the Dutch Civil Code.

Use a Severance Agreement when ending an employment relationship in the Netherlands needs to be handled professionally and legally. Common situations include reorganizations, mutual separations, or when offering an employee an exit package that exceeds the statutory transitievergoeding (transition payment).

The agreement becomes essential when you need to protect company interests through confidentiality provisions or non-compete clauses, or when settling potential disputes before they arise. It's particularly valuable during collective redundancies, when standardizing departure terms across multiple employees, or in situations involving senior management where additional compensation or benefits are part of the separation package.

• Severance Contract: Standard comprehensive agreement covering basic termination terms and statutory transition payment
• Severance Letter: Simpler format used for straightforward separations with clear-cut terms
• Outplacement Services Severance Agreement: Includes career transition support and job placement assistance
• Executive Separation Agreement: Enhanced package for senior leaders with additional benefits and stricter confidentiality terms
• Voluntary Severance Agreement: Used when employees opt into departure programs, often during reorganizations

• Employers/Companies: Draft and propose Severance Agreements, often through their HR departments or legal teams, ensuring compliance with Dutch labor laws
• Employees: Review, negotiate, and sign agreements, often seeking legal advice to understand their rights and obligations
• Employment Lawyers: Advise both parties, draft agreements, and ensure compliance with Dutch Civil Code requirements
• Works Councils: May review agreements during collective redundancies or reorganizations
• Trade Unions: Often involved in negotiating standard terms for collective severance packages
• HR Professionals: Manage the practical implementation and coordinate between parties

• Employment Details: Gather complete information about salary, benefits, and length of service to calculate the statutory transition payment
• Termination Grounds: Document clear reasons for separation under Dutch law (e.g., reorganization, performance, mutual consent)
• Notice Periods: Check employment contract and legal requirements for proper notice timing
• Additional Benefits: List any extra compensation, continued benefits, or outplacement services
• Restrictive Clauses: Define any non-compete, confidentiality, or intellectual property terms
• Timeline Planning: Account for mandatory reflection periods and works council consultation if needed
• Documentation: Prepare supporting evidence for termination grounds and payment calculations

• Party Details: Full legal names, addresses, and roles of employer and employee
• Termination Date: Clear specification of the last working day and employment end date
• Financial Terms: Detailed breakdown of transition payment (transitievergoeding) and additional compensation
• Release Claims: Mutual discharge of claims and liabilities under Dutch law
• Confidentiality: Terms regarding company secrets and sensitive information
• Post-Employment Obligations: Non-compete and non-solicitation provisions if applicable
• Reflection Period: Mandatory 14-day consideration period statement
• Company Property: Requirements for returning company assets and data
• Governing Law: Explicit reference to Dutch law and jurisdiction

A Severance Agreement differs significantly from an Asset Purchase Agreement in both purpose and scope, though they sometimes overlap during business restructuring. While both documents handle transitions, they serve distinct legal functions under Dutch law.

• Primary Purpose: Severance Agreements focus on ending employment relationships and settling employee rights, while Asset Purchase Agreements handle the transfer of business assets and property
• Timing and Duration: Severance Agreements typically have immediate effect with specific end dates, whereas Asset Purchase Agreements often involve longer transition periods and ongoing obligations
• Legal Requirements: Severance Agreements must comply with Dutch labor law and mandatory reflection periods, while Asset Purchase Agreements follow corporate and commercial law frameworks
• Party Obligations: Severance focuses on employee benefits and transitional payments, while Asset Purchase deals with ownership transfer, warranties, and business continuity