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Severance Letter Template for Netherlands

A Severance Letter under Dutch law is a formal document that outlines the terms and conditions of an employee's departure from an organization, including the statutory transition payment (transitievergoeding) and other termination arrangements. This document must comply with the Dutch Civil Code and the Work and Security Act, incorporating specific requirements for notice periods, statutory payments, and settlement terms. It serves as an official record of the termination agreement between employer and employee, detailing financial arrangements, outstanding obligations, and any additional benefits or conditions associated with the employment termination.

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What is a Severance Letter?

The Severance Letter is a crucial document used in the Netherlands when terminating an employment relationship, whether through mutual agreement, redundancy, or other circumstances. It must comply with Dutch employment law, particularly the Work and Security Act (Wet Werk en Zekerheid) and the Dutch Civil Code (Burgerlijk Wetboek). The letter formally documents the termination arrangements, including the mandatory transition payment (transitievergoeding), notice period, final salary calculations, and treatment of benefits. It serves as a legal record of the termination terms and helps ensure compliance with Dutch employment regulations while protecting both employer and employee interests. The Severance Letter should be drafted with careful attention to legal requirements and often requires review by legal professionals to ensure compliance with current legislation.

What sections should be included in a Severance Letter?

1. Opening and Addressing: Formal letter heading, date, employee details, and appropriate salutation

2. Reference to Employment: Confirmation of current position, start date, and reference to previous communications about termination if applicable

3. Termination Confirmation: Clear statement of employment termination date and reference to the termination ground under Dutch law

4. Notice Period: Specification of notice period and last working day

5. Financial Settlement: Details of the statutory transition payment (transitievergoeding) and calculation basis

6. Outstanding Payments: Information about final salary, accrued holiday pay, and unused vacation days

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

8. Confidentiality: Reminder of ongoing confidentiality obligations

9. Full and Final Settlement: Statement confirming the settlement is full and final

10. Closing: Signature block and formal closing

What sections are optional to include in a Severance Letter?

1. Additional Compensation: Used when offering compensation beyond the statutory minimum

2. Non-Competition/Non-Solicitation: Include if existing restrictions need to be addressed or modified

3. Reference Letter: Include if offering a reference letter or certificate of employment

4. Benefits Continuation: Used when extending certain benefits beyond termination

5. Outplacement Support: Include if offering career transition services

6. Share Options/Bonuses: Used when addressing outstanding equity or bonus arrangements

7. Legal Fees: Include if contributing to employee's legal consultation fees

What schedules should be included in a Severance Letter?

1. Calculation Schedule: Detailed breakdown of severance payment calculation

2. Company Property List: Inventory of items to be returned

3. Benefits Summary: Overview of benefits status and continuation details

4. Payment Timeline: Schedule of all payments to be made

5. Tax Information: Summary of tax treatment of various payment components

Authors

Alex Denne

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

Jurisdiction

Netherlands

Publisher

Ƶ

Document Type

Severance Agreement

Cost

Free to use

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