Things to watch out for in a termination proposal

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Things to watch out for in a termination proposal
Jaap Stikkelbroeck

Jaap Stikkelbroeck

29 augustus 2020

A reorganization is a difficult process that some companies have to go through in order to keep their companies financially healthy. One part of this procedure is letting go of permanent employees by terminating their contracts. In our previous blog we’ve discussed the way for an employer to do this with help of the UWV. Read about that here.

Reorganization UWV
Termination proposal

However, the process at the UWV is very expensive, time-consuming and limits the company in its options to select which employees to let go. The better option is to offer employees a termination proposal with mutual consent.

Often, these proposals will only be accepted by employees if the same structure is followed as in the UWV process (think of the reflection principle, consent of the Works Council, etc.). If this is not the case, the chances are likely that the proposals will be refused and the employer still has to go to the UWV.

What are important points in a termination proposal?

If you’ve received such a termination proposal from your employer, it is wise to obtain legal advice. There are some topics that are very important and always need to be checked, for instance:

  • Has the employer adhered to the principle of reflection, is there a social plan and has consultation taken place with the Works Council?
  • The termination agreement must make clear that the initiative for terminating the employment contract came from the employer, not the employee.
  • The proper notice period must be taken into account.
  • Financial compensation: please note this is not a transition fee
  • Is the final account correct when related to matters such as bonus and holidays?
  • Will you be relieved from your non-competition clause?
  • Are you required to continue working or are you exempted from work.
  • Is your employer willing to give you a written attestation about your time as employee?

These just a few of the important key points one should look out for in a termination proposal. Do you want a specialist to advise you on the termination proposal you’ve received in order to get the best termination agreement at the end of the process?

Take a look at our products below. You can also directly contact any of the specialists mentioned on the right side bar who are very experienced on this topic.

Other related topics

Apart from this, employees with roots outside of the Netherlands usually have a lot of questions about matters such as housing, fiscal expat rulings or even the consequences for their work permit. Do you have a question about these topics? can help out! Ask your question free of obligation through our ‘Ask a question’-form.

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The specialists on can always help out in this situation. Wondering why should work with these specialists? Read about it here!

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