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Exit Agreement for the Netherlands

Exit Agreement Template for Netherlands

A Dutch Exit Agreement (beëindigingsovereenkomst) is a formal contract document governed by Dutch employment law that sets out the terms and conditions for the mutual termination of an employment relationship. The agreement comprehensively addresses the termination date, financial settlements including the statutory transition payment (transitievergoeding), ongoing obligations, and release of claims. It ensures compliance with Dutch Civil Code requirements while protecting both employer and employee interests through clear articulation of post-employment obligations, benefit arrangements, and confidentiality requirements.

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What is a Exit Agreement?

The Exit Agreement serves as a crucial legal document in Dutch employment relationships when employment is terminated by mutual consent. This document type is particularly relevant when parties wish to avoid the standard termination procedures through the UWV (Dutch Employment Insurance Agency) or court proceedings. The agreement typically arises in scenarios including reorganizations, performance-related exits, or mutual decisions to part ways. It must comply with Dutch employment law requirements, particularly the Dutch Civil Code (Burgerlijk Wetboek) and the Work and Security Act (Wet Werk en Zekerheid). The Exit Agreement includes essential provisions regarding financial settlements, transition payments, final working day, post-employment restrictions, and release of claims, while ensuring protection of both employer and employee rights under Dutch law.

What sections should be included in a Exit Agreement?

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

2. Background: Brief history of employment relationship and context for the termination

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Specific date of employment termination and last working day

5. Financial Settlement: Details of all financial components including salary, transition payment, and other benefits

6. Final Payment: Calculation and timing of final salary payment and outstanding benefits

7. Company Property: Requirements for returning company property and handling of digital assets

8. Confidentiality: Ongoing obligations regarding confidential information

9. Full and Final Settlement: Mutual release of claims and waiver of rights

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

11. Reference and Communications: Agreed approach to employment references and internal/external communications

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

13. Signatures: Execution provisions and signature blocks

What sections are optional to include in a Exit Agreement?

1. Post-Termination Restrictions: Non-compete and non-solicitation clauses, used for senior positions or roles with access to sensitive information

2. Share Options/Incentives: Treatment of existing share options or long-term incentive plans, included if employee participates in such schemes

3. Garden Leave: Terms of any garden leave period, used when employee is to remain employed but not working

4. Legal Fees: Arrangement for payment of legal fees, included if employer agrees to contribute

5. Consultancy Arrangements: Terms for any post-employment advisory role, used when continued involvement is desired

6. International Aspects: Special provisions for international employees or cross-border implications

7. Intellectual Property: Specific IP-related provisions, used for technical or creative roles

8. Insurance Continuation: Arrangements for continuing or transferring insurance benefits

9. Works Council Approval: Reference to works council involvement, required for certain senior positions

What schedules should be included in a Exit Agreement?

1. Schedule 1 - Payment Calculation: Detailed breakdown of all financial payments including transition payment calculation

2. Schedule 2 - Company Property List: Itemized list of company property to be returned

3. Schedule 3 - Outstanding Benefits: List of accrued benefits and their treatment

4. Schedule 4 - Reference Template: Agreed format and content of employment reference

5. Appendix A - Share Option Details: Details of treatment of share options and vesting schedules

6. Appendix B - Handover Plan: Detailed plan for handover of responsibilities and ongoing projects

Authors

Alex Denne

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

Jurisdiction

Netherlands

Publisher

Ƶ

Cost

Free to use
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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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