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Exemption from work in settlement agreement: what does it mean for the employee in the Netherlands?
What exactly does exemption from work under a settlement agreement mean and what do you need to be aware of as an employee? Read more about it here.
SETTLEMENT AGREEMENT
Everyone knows the situation where you are thinking about resigning yourself. You would like to make a new start at another company, but this means that you must resign. Can you resign, and what are the consequences of resigning? This blog will answer these questions.
It is possible for an employee with a permanent contract to end the employment relationship unilaterally. As an employee, you can resign yourself by submitting your resignation verbally or sending a letter of resignation. For an employee with a temporary employment contract, it is not possible to terminate the employment relationship before the end date in all cases. This is only possible if it has been agreed in the employment contract or the CAO. If such a clause is not included in the contract or in the CAO, the employer must give permission for the dismissal.
It is not necessary to give a reason for resigning. According to case law, the notice must be a clear and unambiguous statement or conduct aimed at the termination of the employment contract. If you resign, a notice period of one month applies, which starts on the first day of the next calendar month. This may be waived in the employment contract or collective bargaining agreement. You must then continue to perform your work for the duration of this notice period. If you resign during the trial period, this notice period does not have to be taken into account.
Resigning can have far-reaching consequences for your financial situation. If there is no question of serious culpability on the part of the employer, the UWV will determine that you are ‘culpably unemployed’. In that case, you will not be entitled to unemployment benefits. In addition, there is no right to the transitional allowance. It is therefore important to determine whether you have concrete prospects for a new job when you want to resign. This is because you will be left without income or benefits and no transitional allowance will be paid.
Just as an employer can fire an employee on the spot, as an employee you can also resign on the spot. This means that the employment contract is terminated with immediate effect. The notice period does not have to be taken into account. For summary dismissal, there must be an urgent reason. This could be a threat from the side of the employer.
If the UWV or the judge rules that this urgent reason was justified, you are entitled to transitional compensation. If it is determined that the reason for the immediate dismissal was not urgent, this may have consequences for any unemployment benefits. In addition, there is then no right to the transitional compensation. It is therefore important to consider carefully whether immediate dismissal is really necessary and whether there is an urgent reason.
As indicated above, the resignation can be either written or oral. However, it is more practical to notify the resignation in writing. This provides proof that you have submitted the resignation. Employers often prefer to give written notice in the form of a letter of resignation. This written notification can be sent by mail or email, but it can also be sent via WhatsApp.
In practice, a resignation letter is usually sent to the employer. This contains a notification that you as an employee wish to terminate the employment contract. Use an example of a letter of resignation for this. If you submit this letter of resignation to the employer, then you have formally submitted your resignation.
Since, in most cases, you are not entitled to unemployment benefits or a transition payment when you resign, it is not a good idea to resign financially. Unless you have concrete prospects of finding a new job, your income will be stopped, and no compensation will be paid. It is a better option financially for the employee to come to a joint termination of the employment contract.
This is done through the settlement agreement. This is an agreement where both parties agree to a termination of the employment contract. In this situation, in most cases there is a right to unemployment benefits, and a severance payment is usually made by the employer. In addition, the employer must take into account the notice period, which means that for a certain period you remain entitled to your salary. During this period, you can start looking for a new job on the job market.
For an employee, it is wiser to sign a settlement agreement than to resign yourself. You are entitled to unemployment benefits and in most cases, you will receive compensation after termination of the employment contract. But how do you do this? Please contact us for this. We can inform you about the possibilities of a settlement agreement.
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