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Termination Settlement Agreement Template for Netherlands

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Key Requirements PROMPT example:

Termination Settlement Agreement

"I need a Termination Settlement Agreement under Dutch law for a senior software developer who is leaving amicably to join a competitor, with specific focus on intellectual property protection and a non-compete clause, with the termination date set for March 1, 2025."

Document background
The Termination Settlement Agreement (Vaststellingsovereenkomst) is a crucial document in Dutch employment law used when an employer and employee mutually agree to end their employment relationship. It serves as a comprehensive record of all termination conditions and protects both parties' interests. This document is particularly relevant in situations involving reorganizations, mutual separation decisions, or when parties wish to formalize departure terms without going through the UWV (Dutch employment agency) or court proceedings. The agreement must comply with strict Dutch legal requirements, including mandatory reflection periods and specific provisions about transition payments. It typically includes detailed financial arrangements, continuing obligations, and mutual releases, while ensuring all terms align with Dutch employment legislation and case law. The document is binding once the reflection period has passed without revocation.
Suggested Sections

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

2. Background: Context of employment relationship, reason for termination, and basis for settlement

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 all payments including salary, transition payment, and other compensation

6. Tax Treatment: Tax implications and agreements regarding payment treatments

7. Final Settlement of Accounts: Settlement of expenses, benefits, and other financial matters

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

9. Release of Claims: Mutual release of claims and waiver of rights

10. References and Communications: Agreement on employment references and internal/external communications

11. Confidentiality: Ongoing confidentiality obligations

12. Return of Property: Process and timeline for returning company property

13. General Provisions: Standard contractual clauses including governing law, entire agreement, and amendments

14. Execution: Signature blocks and execution requirements

Optional Sections

1. Ongoing Projects: Handover requirements for ongoing work, used when employee has active projects

2. Share Options/Benefits: Treatment of outstanding share options or benefits, included if employee has such arrangements

3. Non-Competition: Post-employment competition restrictions, used when new restrictions are agreed or existing ones modified

4. Non-Solicitation: Restrictions on soliciting employees/clients, used when such restrictions are agreed

5. Intellectual Property: Specific IP provisions, included when employee created/worked with significant IP

6. International Provisions: Special clauses for cross-border situations, used for international employees

7. Legal Fees: Provisions regarding payment of legal advisory fees, included if employer agrees to cover costs

8. Garden Leave: Terms of any garden leave period, included if employee won't work during notice period

9. Continuing Obligations: Any ongoing duties or responsibilities, used when post-termination obligations exist

Suggested Schedules

1. Schedule 1 - Payment Calculations: Detailed breakdown of all payment components including salary, transition payment, and other benefits

2. Schedule 2 - Company Property Register: List of all company property to be returned

3. Schedule 3 - Outstanding Benefits: Detailed list of benefits and their treatment post-termination

4. Schedule 4 - Project Status Report: Status overview of ongoing projects requiring handover

5. Appendix A - Existing Restrictive Covenants: Copy of existing non-compete/non-solicitation obligations from employment contract

6. Appendix B - Reference Letter: Agreed form of employment reference

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Chief Executive Officer

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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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