Document background
The Employment Compromise Agreement (Vaststellingsovereenkomst) is a crucial document in Dutch employment law, used when an employer and employee agree to terminate their employment relationship by mutual consent. This document is particularly relevant in situations involving reorganizations, performance-related exits, or mutual decisions to part ways amicably. The agreement serves to protect both parties' interests by clearly documenting all termination conditions, financial arrangements, and mutual obligations. It must comply with Dutch Civil Code requirements and consider implications for unemployment benefits (WW-uitkering). The document typically includes provisions for transition payments (transitievergoeding), notice periods, final settlements, and confidentiality clauses, while ensuring the employee's rights under Dutch law are protected. Proper drafting is essential as it prevents future disputes and provides clarity on post-employment obligations.
