Many employers tell the employee that they can use a lawyer when entering into a transaction agreement. Often, they also present the employee with a budget (usually between 500 and 750 euros excluding VAT) to have the transaction agreement verified by a Dutch labour law specialist. This practice is generally considered to be an appropriate practice of employers. On the other hand, it also helps an employee make a decision, which facilitates a more fluid conclusion. Our experience is that such a budget – if the VSO project was drafted correctly by the employer and the employer is pragmatic with the changes proposed by the employee – is sufficient to review and conclude the average employment contract. And that`s not surprising. Under Dutch law, most employment contracts end because the term of the contract expires (in the case of a fixed-term contract) or because the worker warns. Apart from these cases, the most common method of terminating an employment contract is the redundancy contract (according to Book 7, Section 670b of the Dutch Civil Code). Especially in situations where the employer takes the initiative to terminate the employment contract. unless you can get 1 TON or MORE in the transaction contract. In general, the final discharge is the settlement agreement to be concluded. In this section, employers and employees confirm that once the SA agreements have been passed, there are no other rights against each other.
The aim is to put a definitive end, as far as possible, to the relationship between the employer and the worker within the SA and to ensure that no open items are left outside the SA. Kayne, R. (1989). Facets of romanticism made participatory agreement. In Beninca, P. (note) The variation of dialect and the theory of grammar. Dordrecht: Foris. 85-103. One of the relevant aspects for the worker is that the date of termination of the employment contract is in accordance with the date on which the worker is entitled to unemployment benefits. For this reason, the transaction agreement must take due account of the fact that the notice period in force at the time of termination of the employment contract has been duly respected. In addition, in order to be safe, and given the worker`s rights to unemployment benefits, the VSO often contains a provision stipulating that the termination of the employment contract is not due to the employee (no dismissal by the worker), since it is the employer who has taken the initiative to terminate the employment contract.
When a employment relationship ends at the employer`s initiative, a worker is entitled to a transition fee under Dutch law. The transitional tax is a legal right that has replaced the sub-circumscription tribunal formula, as it used to be called. As of January 1, 2020, this fee applies from the first working day and regardless of the duration of the employment and is accumulated at the rate of 3rd month`s salary per year of service.