The Early Termination Agreement is utilized when both employer and employee agree to end their employment relationship prior to its natural conclusion or notice period. This document is essential under Dutch employment law when parties wish to formalize a mutual separation, ensuring compliance with statutory requirements while protecting both parties' interests. It typically includes provisions for final payments, transition allowances (transitievergoeding), benefit settlements, and mutual releases. The agreement must adhere to Dutch Civil Code requirements, particularly regarding mandatory notice periods and employee protections. It's commonly used during reorganizations, mutual separations, or when alternative employment arrangements are agreed upon. The document must be carefully drafted to ensure enforceability and compliance with Dutch employment regulations, including consideration of mandatory cooling-off periods and statutory entitlements.
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1. Parties: Identification of the contracting parties with full legal names and addresses
2. Background: Context of the employment relationship and reasons for early termination
3. Definitions: Definitions of key terms used throughout the agreement
4. Termination Date: Specific date when the employment relationship will end
5. Final Settlement: Details of final salary, benefits, and statutory entitlements including transition payment (transitievergoeding)
6. Mutual Release: Mutual discharge of claims and obligations between parties
7. Company Property: Obligations regarding return of company property and documentation
8. Final Accounts: Settlement of expense accounts and financial matters
9. Tax Implications: Statement regarding tax treatment of payments and responsibilities
10. Governing Law: Confirmation that Dutch law governs the agreement
11. Signatures: Execution blocks for all parties
1. Garden Leave: Used when employee is required to serve notice period away from work
2. Confidentiality: Required when parties need to maintain confidentiality about the termination or specific business information
3. Non-Competition: Include when existing non-compete clauses need to be addressed or modified
4. Ongoing Obligations: Needed when certain obligations continue post-termination
5. Reference: Include when arrangements for employment references are needed
6. Legal Advice: Statement confirming that parties had opportunity to seek legal advice, particularly important for senior employees
7. Insurance Continuation: Include when addressing continuation or termination of insurance benefits
8. Share Options/Benefits: Required when dealing with existing share options or long-term benefits
9. Communication: Include when parties need to agree on how the departure will be communicated
10. Assistance with Handover: Used when specific handover arrangements need to be documented
1. Schedule 1 - Payment Calculation: Detailed breakdown of all payments including salary, benefits, and statutory entitlements
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Ongoing Benefits: Details of any benefits continuing post-termination
4. Schedule 4 - Handover Plan: Specific tasks and timeline for knowledge transfer
5. Appendix A - Statutory Rights: Summary of relevant statutory rights under Dutch law
6. Appendix B - Tax Summary: Overview of tax treatment of various payment components
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