Termination in mutual consent of an employment contract is a good known practice in the Netherlands.
No notice of termination by the employer is required for this. Parties agree upon the conditions they are to part. All the arrangements are laid down in a written termination agreement.
If the employee has signed the termination agreement he/she has the right to cancel the termination agreement. within 14 days after the date on which the termination agreement was concluded without stating reasons.
In a so called termination agreement all kind of topics are arranged such as termination date, severance payment, final settelement of accounn including holidays, what about bonus payments? non compete/ non solicitation, reference, and anything else relating to the end of the employment contract.
Grounds for termination
The grounds for termination can be several. For instance non performance, long term sickness, disturbed relation ship and/ or economical reasons.
One of the most important topic is severance payment in the case of termination. Under Dutch law you have the transition compensation. This compensation is always obliged to pay if the initiative for termination is at the side of employer and there is no urgent cause.
Further more a so called reasonable fee can be indicated in the case of serious imputable acts of ommissions committed by employer. th etermination agreement will be negotiated between parties in order to avoid legal proceedings. In that way all the aspects of the employment contract are solved.
Another relevant topic in the negotiations for a termination is lapse of non compete clause if any. Or what to do with shares and Long term Incentives? In that way the employee is free to act after the employent contract
If you have any questions about employment law and/ or termination in mutual consent please call Eva Jongepier van Fennek lawyers: