The Mutual Separation Agreement (Vaststellingsovereenkomst) is a crucial document used in the Netherlands when an employer and employee agree to end their employment relationship by mutual consent. This agreement falls under Dutch employment law, particularly the Dutch Civil Code (Burgerlijk Wetboek) and the Work and Security Act (Wet Werk en Zekerheid). It's typically used when parties wish to avoid formal dismissal procedures and agree to terminate employment under mutually acceptable terms. The document encompasses essential elements such as termination date, financial arrangements, confidentiality provisions, and mutual releases, while ensuring compliance with Dutch labor laws and protecting both parties' rights, including the employee's entitlement to unemployment benefits. It's particularly important that the agreement clearly documents the mutual nature of the separation to avoid future disputes and ensure validity under Dutch law.
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1. Parties: Identification of the employer and employee with full legal names and addresses
2. Background: Context of the employment relationship, including start date, current position, and reason for mutual separation
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specific date when employment relationship ends and handover arrangements
5. Final Settlement: Details of final salary, benefits, and holiday pay calculation
6. Severance Payment: Amount, calculation method, and payment terms of the separation payment
7. Company Property: Requirements for returning company assets and timeline
8. Confidentiality: Ongoing obligations regarding confidential information
9. Full and Final Settlement: Mutual release of claims and waiver of rights
10. Tax Implications: Statement on tax treatment of payments and responsibilities
11. Reference: Agreement on the nature and content of employment references
12. Governing Law: Confirmation of Dutch law application and jurisdiction
13. Signatures: Execution clause and signature blocks
1. Garden Leave: Used when employee will remain employed but not required to work during notice period
2. Non-Competition: Include if enforcing existing non-compete clauses or creating new restrictions
3. Non-Solicitation: Include if restricting employee from approaching clients or colleagues
4. Ongoing Projects: Include if specific project handover arrangements are needed
5. Share Options/Benefits: Include if employee has company shares or long-term benefits requiring treatment
6. Legal Fees: Include if employer is contributing to employee's legal costs
7. Communications: Include if specific internal/external announcement arrangements are needed
8. Outplacement Support: Include if providing career transition services
9. Insurance Continuation: Include if extending certain insurance benefits post-termination
1. Schedule 1 - Financial Statement: Detailed breakdown of all financial elements including final salary, severance, and benefits calculations
2. Schedule 2 - Company Property List: Itemized list of company assets to be returned
3. Schedule 3 - Existing Restrictive Covenants: Copy of relevant clauses from employment contract that survive termination
4. Appendix A - Resignation Letter: Template or copy of formal resignation letter
5. Appendix B - Certificate of Completion: Document confirming return of company property and completion of handover
6. Appendix C - Reference Template: Agreed format and content of employment reference
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