If you agree to your dismissal or redundancy

If your contract ends by mutual consent, you and your employer will have to work out the details of your dismissal or redundancy together. These terms should be clearly written down in a settlement agreement (‘vaststellingsovereenkomst’). To ensure clarity and protect your rights, your employer should include the following information in any settlement agreement:

• The agreement should confirm the dismissal or redundancy was initiated by your employer and explain why. This is important as you will not be entitled to an unemployment benefit otherwise.
• The agreement should specify you are not being dismissed because of ‘gross misconduct’ (this is behaviour that is so serious it destroys the trust between you and your employee).
• The agreement should confirm you are not currently ill as this could affect your entitlement to an unemployment or sickness benefit.
• The agreement should specify the employment is ending by mutual consent.
• The agreement should specify the date on which you will receive your final pay (‘eindafrekening’). Keep in mind if a contract ends by mutual consent there is no standard dismissal or redundancy pay (‘transitievergoeding’). Instead, you will be expected to negotiate your severance pay (‘ontslagvergoeding’) separately with your employer.
• The agreement must clearly state you will be given 2 weeks to review the settlement agreement and change your mind. If this information is not included in the agreement, you will be given 3 weeks to consider the offer.

If your employment ends with your individual consent, this is considered a one-sided process. Your employer initiates the dismissal or redundancy and you agree to this in writing. You will usually be entitled to dismissal or redundancy pay (‘transitievergoeding’) in such cases.

Your employer is legally required to inform you that you have 2 weeks to change your mind after you agree to the dismissal or redundancy. This must be done in writing and within 2 days of you agreeing to the end of your employment. If your employer fails to do this, you will be given 3 weeks to reconsider your decision.

Do not agree to your dismissal or redundancy if you have been ill for less than 2 years. This is important because you will not qualify for an unemployment benefit in such circumstances. It is also unlikely that you will receive a sickness benefit during this period as your employer is legally required to continue paying your wages for the first 2 years of your illness. Agreeing to your dismissal or redundancy in such circumstances could therefore leave you without a source of income.