Termination agreement - Asselbergs & Klinkhamer Advocaten

Termination agreement

When the employer and the employee jointly decide to terminate the employment contract, it is advisable to draw up a termination agreement in order to prevent discussions in the future. This termination agreement will record the arrangements of the termination of the employment. This is also referred to as a termination on the basis of mutual consent or dismissal by mutual consent. Which subjects are included in the termination agreement depends, among other things, on the agreements which were reached at the entering into of the contract. The wish for a specific manner of settlement can also play a role. For example, if it concerns a release from work duties, the date on which the contract terminates, the return of business property, any severance payment and the drawing up of the final account. Attention must also be paid to clauses which play a role after the termination of the employment contract, such as the non-competition clause, non-solicitation clause, and the confidentiality clause.

Unemployment benefits

It is important for the employee that the termination agreement fulfils the requirements which are set by legislation and regulations, because otherwise he or she will not be eligible for unemployment benefits. Upon termination on the basis of mutual consent, there is no real notice period; there is a notional notice period instead. If this is not taken into consideration, or the notional notice period is too short, this will have consequences for the time at which an employee will receive unemployment benefits, because the benefits agency requires that the notional notice period is taken into consideration. If the employee wants to receive unemployment benefits consecutively to the end of the employment, the period between the signing of the termination agreement and the date of dismissal must be at least as long as the notice period which is recorded in the contract or stipulated by the law or collective labour agreement. Asselbergs & Klinkhamer Advocaten can advise you, on the basis of the facts on the agenda and the circumstances, of the contents of the termination agreement, and can furthermore draw up this agreement for you and conduct the negotiations during the termination process on your behalf. If you have questions about the possibilities of the unilateral termination of an employment contract, our lawyers can also provide you with advice and assistance. Please contact us. Employment Law