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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.

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