Termination Agreement Netherlands

It is important to note that you can only terminate a contract to terminate a particular employment contract once within six months. If you want to terminate a contract, the first question is whether there is an infringement or delay in payment. There is usually a delay when a party does not meet its contractual obligations. In this case, under Dutch law, the other party has the option of terminating the contract (unless such an option has been expressly excluded in the agreement). If an employer wishes to terminate an employment contract of two years or more, a mandatory transitional tax (in Dutch: ephemeral) is due independently of the applicable termination procedure. The number of months of salary owed is based on the employee`s age and the number of years of service. In the event that the parties do not reach an agreement by mutual agreement and the employer wishes to impose the termination of the employment contract for personal reasons (for example. B the benefit documents), the employer can apply to the sub-district for redundancy. In most cases, the contracts contain, under Dutch law, a provision for termination of the contract for convenience. Therefore, a first step would be to review the contract (including the terms and conditions that may apply) and to review the termination provisions. In many contracts, termination must be done in writing, taking into account notice.

If these formalities have not been properly applied, the termination does not in principle come into force. Either the law (i.e. the employment contract or the lease) or the contractual terms (i.e. the terms and conditions) generally determine the terms of termination. Even if the current benefit contract or the law does not provide for termination conditions, the starting principle is that such an ongoing agreement could be terminated for convenience. Depending on the circumstances of the case, special attention must be paid to (i) the length of notice to be considered and (ii) the possible obligation for the dismissing party to financially compensate the other party. A statutory transitional payment was introduced from 1 July 2015. From 1 January 2020, workers are entitled to a transitional payment from the first working day and during the trial period. An employee receives one-third of the monthly salary per calendar year. The transitional payment is limited to 83,000 euros gross – or if the worker is entitled to a higher annual salary – an annual salary. The transitional payment is not due if the worker terminates the employment contract, unless the termination is the result of a serious obligation on behalf of the employer.


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