Document background
The Severance and Release Agreement is a crucial document used in the Netherlands when formally terminating an employment relationship through mutual agreement or as part of a unilateral termination. It serves to document the terms of separation while ensuring compliance with Dutch employment law, including the statutory requirements for transition payments (transitievergoeding) and the valid waiver of rights. This document is typically used in situations ranging from individual terminations to larger reorganizations, redundancies, or mutual separations. The agreement must carefully balance the employer's desire for finality and release of claims with the employee's statutory and contractual rights under Dutch law. Given the protective nature of Dutch employment legislation, particular attention must be paid to the calculation of severance payments, notice periods, and the format of the release provisions to ensure enforceability.
