Employee Severance Agreement for the Netherlands

Employee Severance Agreement Template for Netherlands

This document is a comprehensive Employee Severance Agreement governed by Dutch employment law, specifically designed to formalize the termination of employment between an employer and employee in the Netherlands. It incorporates essential elements required under Dutch labor legislation, including the Work and Security Act (WWZ) and relevant provisions of the Dutch Civil Code. The agreement details the terms of separation, including the transition payment (transitievergoeding), notice periods, final settlements, and any post-employment obligations. It ensures compliance with Dutch tax regulations regarding severance payments and addresses various aspects such as confidentiality, company property return, and mutual release of claims.

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What is a Employee Severance Agreement?

The Employee Severance Agreement is a crucial document used in the Netherlands when formalizing the termination of employment relationship between an employer and employee. It is particularly relevant in situations involving mutual consent terminations, redundancies, or negotiated exits. The agreement must comply with Dutch employment law, including the Work and Security Act (WWZ) and the Dutch Civil Code, which provide specific requirements for severance calculations, notice periods, and procedural requirements. This document typically includes comprehensive details about financial settlements, transition payments, treatment of benefits, post-employment obligations, and tax implications. It serves as a legally binding record of the termination terms while protecting both parties' interests and ensuring compliance with Dutch employment regulations. The agreement is often reviewed by legal counsel and may require works council consultation in certain circumstances.

What sections should be included in a Employee Severance Agreement?

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Context of the employment relationship, including start date, position, and reason for termination

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Specific date and conditions of employment termination

5. Financial Settlement: Details of the severance payment, including calculation method and payment timing

6. Final Salary and Benefits: Treatment of outstanding salary, vacation days, bonuses, and other benefits

7. Company Property: Requirements and timeline for returning company property

8. Confidentiality: Ongoing obligations regarding confidential information

9. Post-Employment Restrictions: Confirmation of existing or modified non-compete and non-solicitation clauses

10. Release of Claims: Mutual release of claims between parties

11. Tax Implications: Statement on tax treatment of payments and responsibilities

12. Final Settlement: Confirmation that the agreement represents full and final settlement

13. Governing Law: Confirmation of Dutch law application and jurisdiction

14. Signatures: Execution provisions and signature blocks

What sections are optional to include in a Employee Severance Agreement?

1. Garden Leave: Used when employee is placed on garden leave during notice period

2. References: Include when parties agree on the content and handling of employment references

3. Insurance Continuation: Required when discussing continuation or termination of insurance benefits

4. Share Options/Awards: Include when employee has outstanding share options or awards

5. Legal Fees: Used when employer agrees to contribute to employee's legal costs

6. Outplacement Support: Include when outplacement services are being provided

7. Communications: Used when parties agree on internal/external communications about the departure

8. Ongoing Cooperation: Include when employee's assistance may be needed post-termination

What schedules should be included in a Employee Severance Agreement?

1. Schedule 1 - Calculation of Severance Payment: Detailed breakdown of severance calculation including transition payment

2. Schedule 2 - Outstanding Benefits Calculation: Itemized list of accrued benefits, vacation days, and other entitlements

3. Schedule 3 - Company Property Inventory: List of company property to be returned

4. Schedule 4 - Existing Post-Employment Restrictions: Copy of relevant restrictions from employment contract

5. Appendix A - Tax Calculations: Breakdown of tax treatment of various payment components

6. Appendix B - Release Form: Detailed release of claims form if required separately

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Netherlands

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Technology

Manufacturing

Professional Services

Retail

Healthcare

Education

Construction

Energy

Telecommunications

Transportation and Logistics

Media and Entertainment

Real Estate

Hospitality

Non-Profit Organizations

Public Sector

Pharmaceuticals

Agriculture

Mining and Resources

Consumer Goods

Relevant Teams

Human Resources

Legal

Finance

Executive Leadership

Operations

Information Technology

Sales

Marketing

Research and Development

Customer Service

Administration

Production

Quality Assurance

Business Development

Procurement

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Department Head

Senior Manager

Project Manager

Software Developer

Sales Representative

Account Manager

Human Resources Manager

Operations Manager

Marketing Director

Research Scientist

Financial Analyst

Administrative Assistant

Customer Service Representative

Production Supervisor

Technical Specialist

Business Development Manager

Legal Counsel

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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