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What is a termination agreement?

The termination agreement may also terminate an employment relationship. In a termination, one side always gives notice of termination to the other side and certain time limits must be observed. This is different with the termination agreement. Both sides agree on the termination of the employment relationship and can also set the date as desired. Note: A termination agreement may also include other provisions which may, for example, affect your wage entitlements after termination of the employment relationship. 

Unlike notice of termination, the termination agreement must be signed by both the employer and the employee. You are not obliged to sign a termination agreement. Take time to think about it and get advice in case of doubt. Check carefully whether you want to sign the agreement. If you sign, you automatically agree to all the provisions therein with your own signature. This makes it much harder to fight against a termination agreement at a later stage than a notice of termination.

Be careful! If you sign a termination agreement, the employment agency will probably not pay you unemployment benefit for up to three months. In the case of termination agreements, the Employment Agency / Job Centre assumes that you were involved in the termination of the employment relationship.

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