Settlement agreements or termination agreements

With such a settlement agreement, the employer and employee can terminate the employment contract without the intervention of a court or the UWV. In the event of termination by mutual consent, the employer and employee make agreements about the termination of the employment contract in mutual consultation. These agreements are laid down in a settlement agreement.

As an employee, it is important to know that you are not obliged to cooperate in a termination by mutual consent. However, cooperating in such an agreement may be wise under certain circumstances. Not only can this avoid a long and costly court procedure, but the content of the settlement agreement is also freely determinable.

This means that, in principle, the parties are free to agree on anything they wish. This includes, for example, the end date, the amount of the severance pay/redundancy pay and whether or not any post-contractual clauses (such as a non-competition clause) will lapse.

If you, as an employee, wish to cooperate in a termination by mutual consent, there is often room for negotiation with your employer. Given the significant interests involved in concluding a settlement agreement and the far-reaching consequences of agreeing to the termination of your employment contract, it is important to have the agreement reviewed by a solicitor before you agree to it.

Questions we will answer together with you include whether there is a reason to agree to the termination of the employment contract, whether there is room for negotiation, whether your rights are respected in the agreement (for example, are any unemployment benefits secured) and whether the settlement agreement offers you sufficient prospects for the future.