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Severance Contract

Severance Contract Template for Netherlands

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Key Requirements PROMPT example:

Severance Contract

"I need a Dutch Severance Contract for a senior software developer who is leaving due to restructuring, including non-compete provisions and treatment of unvested stock options, with termination effective March 1, 2025."

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Document background
The Severance Contract (beëindigingsovereenkomst) is a crucial document used in the Netherlands when employment relationships are terminated by mutual agreement or as part of a wider reorganization. This document is essential for ensuring compliance with Dutch employment law while providing clear terms for both parties regarding the termination of employment. It becomes relevant in various scenarios including reorganizations, performance-related exits, or mutual agreements to part ways. The contract must adhere to strict Dutch legal requirements, including statutory severance calculations (transitievergoeding) and the mandatory 14-day reflection period. It typically encompasses financial arrangements, tax considerations, confidentiality provisions, and potential post-employment restrictions, all while ensuring protection under Dutch employment regulations.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names and addresses

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 and Arrangements: Specific date of termination and handover arrangements

5. Financial Settlement: Details of severance payment, including calculation method and payment timing

6. Final Salary and Benefits: Treatment of outstanding salary, bonuses, vacation days, and other benefits

7. Tax Treatment: Tax implications and responsibilities regarding the severance payment

8. Statutory Reflection Period: Mandatory 14-day reflection period under Dutch law

9. Final Discharge: Mutual release of claims and obligations

10. Confidentiality: Obligations regarding confidential information

11. References: Agreement on employment references and communications about departure

12. Governing Law: Confirmation of Dutch law application and jurisdiction

13. Signatures: Execution section including date and signature blocks

Optional Sections

1. Non-Competition and Non-Solicitation: Post-employment restrictions, used when protecting business interests is crucial

2. Company Property: Details of company property return, used when employee has significant company assets

3. Ongoing Projects: Transition arrangements for unfinished work, used for senior or specialized roles

4. Share Options/Investment Plans: Treatment of equity-based compensation, used when employee has share-based benefits

5. Legal Fees: Arrangement for payment of legal advisory fees, used when employer agrees to cover employee's legal costs

6. Medical Insurance Continuation: Arrangements for continued health coverage, used for international employees or special benefits packages

7. Outplacement Support: Details of career transition services, used when part of severance package

8. Press/Communication Strategy: External and internal communication agreements, used for senior executives or public-facing roles

Suggested Schedules

1. Schedule 1 - Severance Calculation: Detailed breakdown of severance payment calculation including statutory and contractual elements

2. Schedule 2 - Outstanding Benefits: Itemized list of accrued benefits, bonuses, and vacation days

3. Schedule 3 - Company Property Inventory: List of company assets to be returned

4. Schedule 4 - Handover Document: Detailed list of ongoing projects and handover instructions

5. Appendix A - Tax Calculations: Overview of tax implications and calculations

6. Appendix B - Benefits Summary: Summary of post-termination benefits and their duration

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions






























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Relevant Industries

Technology

Financial Services

Manufacturing

Professional Services

Retail

Healthcare

Education

Telecommunications

Construction

Energy

Media and Entertainment

Transportation and Logistics

Real Estate

Hospitality

Pharmaceutical

Relevant Teams

Human Resources

Legal

Finance

Executive Leadership

Operations

Information Technology

Sales

Marketing

Research and Development

Customer Service

Administration

Product Development

Business Development

Relevant Roles

CEO

Managing Director

Department Manager

Senior Manager

Project Manager

Senior Developer

Software Engineer

Sales Representative

Marketing Specialist

Financial Analyst

HR Manager

Operations Manager

Account Executive

Administrative Assistant

Research Scientist

Product Manager

Business Analyst

Technical Lead

Customer Service Representative

Regional Director

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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