When an employer wants to dismiss an employee, they make the employee a termination proposal to terminate the employment contract by mutual consent. This is done through a settlement agreement, also known as a termination agreement.
How do you, as an employee, know if this is a good “deal” that does justice to your interests? In our experience, legal assistance insurers advise employees too often, and too quickly, to accept the employer’s first proposal.
That is unfortunate, because the employee is often in a better negotiating position than they think. The employer prefers not to go through an entire procedure with the Employee Insurance Agency (UWV) or the court.
It pays to engage a specialized employment law attorney. They will review the settlement agreement and negotiate better terms. In any case, we check the settlement agreement for (in short) the following matters:
- Review of the stated reason for dismissal, and if necessary, the reflection principle (i.e., in the case of business economic reasons, is there indeed a need for restructuring and does this actually lead to redundancy for this employee?)
- Is the settlement agreement “WW-proof”?
- Are there no grounds for dismissal prohibition?
- Is the “fictitious” notice period observed? (if not, the Employee Insurance Agency (UWV) will suspend the unemployment benefit)
- Calculation of the statutory transition payment;
- Is there reason to demand more than the statutory transition payment (is the basis debatable, is the employer acting in violation of good employment practices or even seriously culpable)?
- Are the vacation days paid out?
- What has been arranged for continued payment of secondary employment conditions and when should company property be returned?
- Exemption from the non-compete/relationship clause?
- Certificate of employment and/or references?
- Explanation and review of the final discharge; does the employee realize what they are giving up with it?
We have extensive experience in reviewing settlement agreements and conduct negotiations in a professional manner. We always aim for the optimal result. We also look critically at the wording, as it must be very precise. We make text suggestions when something is unclear or unreasonable.
Legal costs? Often the employer offers a legal budget to have the settlement agreement reviewed. But even if this budget is very limited, or you have legal assistance insurance, you may still be better off with the assistance of an experienced employment law attorney. We are transparent in our hourly rate and are happy to look at the possibilities. For example, whether you are already entitled to a free choice of attorney or a second opinion.
You are welcome to contact us without obligation, via info@lvdadvocaten.nl or by phone. 071 – 737 03 39.
