A Separation Letter is a crucial document in Dutch employment law that formalizes the termination of an employment relationship. It is typically used when employment is terminated by mutual agreement or when unilateral termination needs to be documented formally. The document should comply with Dutch employment legislation, including the Dutch Civil Code (Burgerlijk Wetboek) and the Work and Security Act (Wet Werk en Zekerheid). The letter outlines essential termination details such as the effective date, severance payments, final salary calculations, benefit arrangements, and any post-employment obligations. It serves as a legal record protecting both employer and employee interests and helps prevent future disputes by clearly documenting all termination terms and conditions.
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1. Opening Details: Date, employee name, address, and formal letterhead
2. Reference Line: Subject line clearly indicating this is a separation letter
3. Confirmation of Termination: Clear statement of employment termination, including the effective date
4. Reason for Separation: Brief, factual statement of the reason for termination (if mutually agreed)
5. Final Salary and Benefits: Details of final regular salary payment and treatment of benefits
6. Severance Payment: Specification of any severance payment (transitievergoeding) and calculation method
7. Holiday Pay and Unused Leave: Settlement of accrued holiday pay and unused vacation days
8. Company Property: Requirements for returning company property
9. Final Settlement Statement: Reference to the final settlement of all payments and obligations
10. Acknowledgment: Space for both parties to sign acknowledging the terms
11. Closing: Formal closing and signature blocks
1. Non-Competition/Non-Solicitation: Include when there are post-employment restrictions to be enforced
2. Confidentiality Obligations: Include when emphasizing ongoing confidentiality requirements
3. Reference Agreement: Include when specific arrangements about employment references have been made
4. Outstanding Bonuses/Commissions: Include when there are variable compensation elements to be settled
5. Medical Insurance Continuation: Include when specific arrangements about health insurance need to be addressed
6. Pension Arrangements: Include when specific pension-related matters need to be addressed
7. Legal Assistance Costs: Include when arrangements have been made regarding payment of legal fees
8. Training Costs Waiver: Include when there are outstanding training costs that need to be addressed
1. Final Payment Calculation: Detailed breakdown of final payment including salary, severance, and other components
2. Company Property List: Itemized list of company property to be returned
3. Benefit Entitlements Summary: Detailed overview of benefit arrangements post-termination
4. Outstanding Loan Calculations: If applicable, calculation of any outstanding loans or advances
5. Variable Compensation Calculation: If applicable, detailed calculation of bonuses or commission payments
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