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Termination Addendum Template for Netherlands

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Key Requirements PROMPT example:

Termination Addendum

"I need a Termination Addendum under Dutch law for a mutual separation with a senior software developer, with an agreed termination date of March 1, 2025, including standard confidentiality provisions and treatment of unvested stock options."

Document background
The Termination Addendum is utilized when an employer and employee in the Netherlands mutually agree to end their employment relationship. This document is essential for ensuring a legally compliant and well-documented termination process under Dutch employment law. It serves as an amendment to the original employment agreement and should be implemented when parties have reached consensus on termination terms, including the end date, financial settlements, and ongoing obligations. The addendum must comply with Dutch statutory requirements, particularly those outlined in the Dutch Civil Code and the Work and Security Act, including provisions for transition payment (transitievergoeding) and notice periods. This document is particularly important in the Dutch context due to the strict employment protection regulations and the need for clear documentation of mutual consent in termination arrangements.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Reference to original employment agreement, current position, and mutual agreement to terminate

3. Definitions: Key terms used in the addendum, including reference to terms from original employment agreement

4. Termination Date: Specific date when employment relationship will end

5. Final Settlement: Details of final salary, holiday pay, and other statutory entitlements

6. Transition Payment: Calculation and payment terms of the statutory transition payment (transitievergoeding)

7. Company Property: Requirements and timeline for returning company property

8. Final Discharge: Mutual release of claims and obligations

9. Confidentiality: Confirmation of ongoing confidentiality obligations

10. Governing Law: Confirmation that Dutch law governs the addendum

11. Counterparts: Provision for execution in counterparts if needed

Optional Sections

1. Garden Leave: Terms of garden leave if employee is not required to work during notice period

2. Post-termination Restrictions: Confirmation or modification of existing non-compete/non-solicit provisions

3. Reference: Agreement on the nature and content of employment references

4. Legal Fees: Any contribution to employee's legal fees for reviewing the agreement

5. Communications: Agreed approach to internal/external communications about the termination

6. Ongoing Cooperation: Terms for employee assistance with handover or future inquiries

7. Share Options/Benefits: Treatment of any outstanding share options or benefits

8. Tax Indemnity: Provisions regarding tax treatment of payments

9. Outplacement Support: Details of any career transition support provided

Suggested Schedules

1. Schedule 1 - Calculation of Final Payment: Detailed breakdown of all final payments including salary, holiday pay, bonuses, and transition payment

2. Schedule 2 - Company Property Register: List of all company property to be returned

3. Schedule 3 - Reference Letter: Template or agreed form of reference letter if applicable

4. Appendix A - Original Employment Agreement: Copy of the original employment agreement being terminated

5. Appendix B - Settlement Agreement Checklist: Checklist confirming compliance with Dutch legal requirements for valid termination

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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