Publication date: 10 April 2018
The easiest way to terminate an employment contract is by mutual consent. The arrangements made will then be laid down in a settlement agreement. This blog contains a checklist of subjects that should be covered by a termination agreement, such as the expiry date of the employment, leave from work, taking or payment of holidays, severance pay, final financial statement, confidentiality, outplacement, social media clause, full and final settlement, statutory reflection period, etc.
The most common matters to include in a termination agreement or settlement agreement are the following:
The entitlement to unemployment benefits after the termination of het employment contract is important to employees. To ensure that an employee will be entitled dot unemployment benefits, the termination agreement the following must be included in the termination agreement:
In exceptional cases, the settlement agreement may also be annulled after the reflection period, for instance, in cases of vitiated consent, such as error, fraud, or abuse of circumstances. In view of the nature of such an agreement, the Court will exercise utmost restraint when it comes to a request for annulment. For example, an employee cannot have an agreement annulled because of not having obtained legal advice.
If either of the parties fails to comply with the obligations contained in the settlement agreement, the Court may be asked to order performance or to terminate the settlement agreement in whole or in part. However, Courts have to be reserved with regard to such a request for termination.
Would you like more information on settlement agreements? Do you need help drafting or assessing a settlement agreement? Or do you have any other questions concerning employment law and dismissal? Please contact Russell Advocaten:
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