Termination by mutual consent

The easiest way for an employer to terminate an employment contract is by reaching an agreement with the employee. Parties should in that case agree on all specific terms preferably in writing and in a so-called settlement agreement. That way, the risk of discussions arising as to the exact terms is reduced.

Conditions in the termination agreement

Different subjects can be taken into consideration in the settlement agreement. These include (but are not limited to) the date on which the employment contract ends, a possible severance to be paid by the employer but also payment of outstanding salary, holiday pay and vacation days, a confidentiality clause, whether or not a non-competition and/or non-solicitation clause should be waived and the return of company property.

Dutch law offers the employee 14 days to withdraw his or her consent to a termination agreement without stating a reason. Upon concluding a termination agreement the employer is obliged to notify the employee of this statutory right to a reconsideration period.

Further information

Do you have questions about drafting or evaluating a settlement agreement or would you like to discuss a case? Please contact our employment law section.