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Termination Compensation in Settlement Agreements for Rijswijk

Discover how settlement agreements with termination compensation work for employees in Rijswijk. Advice available through Het Juridisch Loket and Rijswijk District Court.

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Termination Compensation in Settlement Agreements in Rijswijk

A settlement agreement termination compensation provides financial support to employees in Rijswijk when ending their employment through a settlement agreement. This legally binding contract between employer and employee outlines the termination terms, including compensation amounts, offering greater predictability than unilateral dismissal. It is a popular approach in the region to prevent disputes and facilitate a smooth transition to new employment, particularly among local businesses in Rijswijk.

What Does a Settlement Agreement Mean for Rijswijk Employees?

A settlement agreement (SA) is a binding document where employer and employee in Rijswijk agree on the termination of the employment contract, as outlined in Article 7:900 of the Dutch Civil Code (BW). Unlike termination through the Rijswijk District Court or the UWV (Dutch Employee Insurance Agency), the employee voluntarily consents to the termination, meaning notice periods or transition payments are not always mandatory unless explicitly agreed. In practice, an SA often includes a termination compensation as compensation, especially if the dismissal is not the employee’s fault.

The agreement must be in writing and typically includes details such as the end date, neutrality clauses for benefits, and payment terms. Since the Wet Werk en Zekerheid (Employment and Security Act, WWZ) came into effect in 2015, SAs have gained popularity in Rijswijk, as termination without court or UWV intervention is possible with mutual consent. Employees in Rijswijk can seek advice from Het Juridisch Loket Rijswijk.

The Legal Basis for Termination Compensation in Rijswijk

While a termination compensation in an SA is not mandatory, it often aligns with the transition payment under Article 7:673 BW, capped at one month’s salary per year of service, with a maximum of €89,000 (2023, subject to indexing). For service periods exceeding two years, the compensation increases to one-third of a month’s salary per year for the first ten years, and half a month’s salary thereafter.

Article 7:681 BW governs transition payments upon dismissal, but an SA may include additional benefits such as bonuses or multiple months’ salary through negotiation. The SA must not compromise WW rights, in compliance with Dutch unemployment insurance regulations. If the SA fails to meet legal requirements, the Rijswijk District Court may declare it invalid (Article 7:900(2) BW). In cases of restructuring or illness in Rijswijk’s sectors—such as local healthcare or IT—collective labor agreements (CAOs) or the Wet Verbetering Poortwachter may increase compensation.

Practical Examples of Termination Compensation in Rijswijk

Consider an IT employee with five years of service at a Rijswijk tech company who becomes surplus due to restructuring. The employer proposes an SA with a transition payment of 5/3 months’ salary (≈1.67 months) plus an additional month as a gesture, totaling around 2.67 months’ salary, excluding vacation pay. After acceptance, payment occurs within a month, and the employee retains WW rights via the Municipality of Rijswijk.

A second case involves a retail employee in a Rijswijk-based company dismissed for misconduct after warnings. The SA provides one month’s salary, below the transition standard but including outstanding bonuses. This avoids lengthy court procedures, where outcomes are uncertain.

In Rijswijk’s healthcare sector, with favorable CAOs, an SA may yield 1.5 months’ salary per year, plus pension compensation, considering local workforce demands and municipal regulations.

Rights and Obligations Regarding Termination Compensation in Rijswijk

Employee Rights in Rijswijk:

  • Right to fair compensation, at least the transition payment if the employer’s dismissal is lawful.
  • Right to professional advice from a union or Het Juridisch Loket Rijswijk (Article 7:670b BW); without advice, the SA may be invalid.
  • Protection against unfair terms: compensation cannot fall below the legal minimum in cases of forced dismissal.

Employer Obligations:

  • Payment of compensation within the agreed timeline, typically one month after termination.
  • Issuance of a neutrality statement for WW claims to the Municipality of Rijswijk.
  • No enforcement of non-compete clauses without compensation (Article 7:653 BW).

Employee Obligations:

  1. Voluntarily sign only after consulting Het Juridisch Loket Rijswijk.
  2. No further claims after signing, except in cases of material errors.
  3. Cooperate in knowledge transfer.

Non-payment may lead to enforcement via the Rijswijk District Court.

Comparison: SA vs. Other Termination Methods in Rijswijk

Aspect SA with Compensation Termination via Rijswijk District Court Termination via UWV
Compensation Negotiated, often transition + bonus Transition + possible fair compensation Transition only, no extras
Procedure Duration Quick resolution with agreement Months with hearings Weeks, with appeal options
WW Rights Retained via neutrality Retained for lawful dismissal Retained for urgent reasons
Costs Low, no court fees Court fees €85–€500 None, lawyer optional

Frequently Asked Questions About SAs in Rijswijk

Do I have to accept termination compensation in an SA?

No, you are not obligated to sign an SA in Rijswijk. You have 14 days to reconsider after signing (Article 7:670b(3) BW) and must seek advice from Het Juridisch Loket Rijswijk. Resisting or pursuing court action is possible if terms are unreasonable.