The Severance Settlement Agreement is a crucial document used in the Netherlands when an employer and employee mutually agree to terminate their employment relationship. It is particularly relevant in situations involving reorganizations, redundancies, or mutually agreed separations. The document must comply with Dutch employment law, including the mandatory 14-day reflection period during which the employee can revoke their consent without stating reasons. The agreement typically includes detailed provisions about financial compensation, handling of benefits, confidentiality obligations, and release of claims. It serves as a legally binding document that protects both parties' interests and provides clarity on all aspects of the employment termination, while ensuring compliance with Dutch labor regulations, tax laws, and social security requirements.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration numbers
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 of employment termination and last working day
5. Financial Settlement: Details of severance payment, including calculation method, gross/net amounts, and payment timing
6. Final Salary and Benefits: Settlement of remaining salary, vacation days, bonuses, and other benefits
7. Tax Treatment: Tax implications and responsibilities for both parties
8. Company Property: Requirements for returning company property and handling of digital assets
9. Confidentiality: Ongoing obligations regarding confidential information
10. Full and Final Settlement: Mutual release of claims and waiver of rights
11. Reflection Period: Mandatory 14-day reflection period under Dutch law
12. References: Agreement on employment references and communication about departure
13. Governing Law: Specification of Dutch law as governing law and jurisdiction
14. Signatures: Execution clause and signature blocks
1. Post-Employment Restrictions: Non-compete, non-solicitation clauses if applicable from existing employment agreement or newly agreed
2. Share Options/Securities: Treatment of existing share options, RSUs, or other securities if applicable
3. Medical Insurance Continuation: Arrangements for continued medical coverage if agreed
4. Outplacement Support: Details of any career transition services provided
5. Legal Fees: Agreement on payment of legal advisory fees if provided
6. Works Council Approval: Reference to works council approval if required for the termination
7. Pension Arrangements: Special provisions regarding pension rights or contributions
8. Internal/External Communications: Agreed language and timing for announcing the departure
1. Schedule 1 - Calculation of Severance Payment: Detailed breakdown of severance calculation including transition payment
2. Schedule 2 - Outstanding Benefits: Itemized list of accrued benefits, vacation days, and other entitlements
3. Schedule 3 - Company Property: Comprehensive list of company property to be returned
4. Schedule 4 - Reference Letter: Agreed form of employment reference
5. Appendix A - Existing Employment Agreement: Copy of the original employment agreement for reference
6. Appendix B - Release Form: Standard release form to be signed after reflection period
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