The Employment Termination Policy serves as an essential governance document for organizations operating in the Netherlands, where employment law provides significant protection for employees and requires strict adherence to specific procedures and requirements. This policy document is designed to guide organizations through various types of employment terminations while ensuring compliance with Dutch labor law, including requirements for notice periods, transition payments (transitievergoeding), and proper procedural steps. It becomes particularly crucial in light of the complex Dutch dismissal system, which requires either approval from the UWV or the subdistrict court, depending on the grounds for termination. The policy helps organizations maintain consistent and compliant termination practices while minimizing legal risks and ensuring fair treatment of employees.
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1. Purpose and Scope: Defines the purpose of the policy and to whom it applies within the organization
2. Definitions: Defines key terms used throughout the policy including types of termination, notice period, transition payment, etc.
3. Legal Framework: Overview of relevant Dutch employment laws and regulations governing termination
4. Types of Employment Termination: Details different types of termination (mutual consent, dismissal, redundancy, retirement, etc.)
5. Notice Periods: Explanation of statutory and contractual notice periods for different employment situations
6. Transition Payment: Details about calculation and payment of the mandatory transition payment (transitievergoeding)
7. Termination Procedures: Step-by-step procedures for different types of termination, including required documentation
8. Rights and Obligations: Overview of both employer and employee rights and obligations during termination process
9. Return of Company Property: Procedures for returning company assets, equipment, and documents
10. Final Settlement: Process for calculating and paying final salary, unused leave, and other entitlements
1. Collective Dismissal Procedures: Include when organization may need to handle mass layoffs (20+ employees within 3 months)
2. International Employment: Include when organization has international employees or cross-border employment relationships
3. Works Council Consultation: Include when organization has a works council or employee representative body
4. Garden Leave: Include if organization practices garden leave during notice periods
5. Post-Employment Restrictions: Include if organization uses non-compete or non-solicitation clauses
6. Rehiring Policy: Include if organization has specific policies about rehiring former employees
1. Notice Period Calculator: Table or tool for calculating statutory notice periods based on length of service
2. Transition Payment Calculator: Formula and examples for calculating transition payments
3. Termination Checklist: Step-by-step checklist for HR to ensure all required actions are completed
4. Document Templates: Standard templates for termination letters, settlement agreements, and other required documentation
5. Exit Interview Form: Standard form for conducting and documenting exit interviews
6. Company Property Checklist: List of company items to be returned upon termination
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