Settlement agreement: your dismissal properly regulated
A settlement agreement. What exactly is it and when is it an issue? A settlement agreement, or a termination agreement, is drawn up if your employer wants to terminate and dissolve the employment contract with you. This agreement can also be an option if he wants to terminate the current temporary contract early. With the condition that you have agreed this together. If one party does not agree to this course of action, a settlement agreement will not apply and you will have to dissolve the contract in some other way. So, you record together that the employment contract will be dissolved and under what conditions.
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Clear agreements without going to court
In the case of a VSO, settlement agreement, you make binding agreements together on the resign. This contains, for example, the proposed dismissal scheme and the severance pay. If you opt for a settlement agreement, you do not have to go to the cantonal court. Also, a dismissal procedure, which will be conducted through the UWV runs, is not an issue. This saves the employer unnecessary proceedings and thus time and money. For you as an employee, it also has advantages:
- You save yourself a long (uncertain) process
- Compensation thanks to a settlement agreement is in most cases higher and therefore more favourable (read how below)
Dismissal is unpleasant enough; let an expert help you so you get the best possible deal with your boss
What does a settlement agreement look like?
You have agreed, after mutually agreeing to terminate the employment contract, to draw up a settlement agreement. What does this look like and what information should it contain? We list them for you:
- Name and address of employee
- Name and address of employer
- That the initiative for dismissal came from the employer and not from employee
- That there are no grounds for instant dismissal
- That the termination is by mutual consent
- The termination date, i.e. the end date of the employment contract (respecting correct notice periods)
- The height of the severance or transitional allowance; you determine this amount together
- Payment of all outstanding holiday entitlements (holiday days, leave)
- Final settlement (including settlement of any thirteenth month) so that no amount is outstanding after that
- Possible exemption from work and work transfer agreements
- Place and date of signing settlement agreement
- Employee has two weeks reflection period after drafting settlement agreement. If the agreement does not state this, the reflection period is three weeks
In addition to these elements, you can also make agreements on non-competition and non-solicitation clauses and confidentiality agreements. Be sure to include legal costs in the settlement agreement as well, so that the employer pays the costs you have to incur for advice on the settlement agreement. You do not deal with this kind of matter on a daily basis, so engage an employment lawyer to represent your interests.
For the next job, any attestation or reference will add value. Request this from your boss and also have this point included in the termination agreement.
Legal help with settlement agreement
As we wrote above; you do not deal with dismissal and a settlement agreement on a daily basis. Fortunately. Therefore, chances are that you are unsure whether everything will be settled properly. You and your employer are separating. This may be in good harmony but perhaps that is no longer the case and you are on opposite sides. Who will then look after your interests?
An expert, an employment lawyer, knows exactly what to look out for. And what you are entitled to in your situation. He takes the arranging work off your hands and makes sure you can sign the best possible proposal.
An expert knows exactly what should be in your settlement agreement
14-day cooling-off period for employee after signing settlement agreement
With redundancy comes emotion. As a result, you may have signed a settlement agreement that you later regret. Or you may have reservations about one or more points included in the document. You can always revoke the settlement agreement without giving reasons. How to do this? You indicate this in writing and within two weeks of signing the termination agreement. Is there nothing about a possible reflection period in the agreement? If so, you even have the right to go back on your earlier agreement within three weeks.
Have you enlisted the help of a lawyer? Do not sign until he has looked at it and given his opinion.
We review your settlement agreement
Review of settlement agreement by Transitievergoedingberekenen.nl
Your employer drafts the settlement agreement. You then check this draft. Better still, you have it checked by an expert. He assesses on your behalf whether all agreements have been correctly incorporated and included in the document. Only when all things are correct, factually and legally, will you sign your boss's proposal.
Have you received a settlement agreement and would like to have check Whether everything is right? Contact us via WhatsApp, call 085 080 5482 or send a email; our employment lawyer will be happy to talk to you. And provide the answers to all your questions.