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Reason for a settlement agreement?

3 minuten mr. Jeroen Kaspers kantoor 17 maart 2020 2025

The reasons for employer and employee to conclude a settlement agreement with each other are diverse. The ultimate goal is almost always the same, namely terminating the employment relationship but why this employment relationship needs to be terminated is of course different per situation. To provide some insight into the (formal) reasons often mentioned in a settlement agreement, below is a brief treatment of the most common reasons.

1. Difference of opinion

Sometimes things don't go well on the work floor between the employer and the employee. The reasons for this are varied. It can happen that the (new) manager does not get along well with the (longer-serving) employee and that this leads to disagreements at work. Or the employee does not get along well with his/her colleagues and this ultimately leads to tensions at work. Although there are often dozens of different reasons why it ''no longer works'' between the employer and the employee, all these reasons are often lumped under one denominator in the settlement agreement: a difference of opinion. Especially employees sometimes have difficulty with the fact that all incidents that have occurred at work are reduced to one single denominator, namely the difference of opinion. Although it is understandable that as an employee in some situations you feel that this denominator does not cover the full load, it is important to describe as neutrally as possible why you have come to a settlement agreement with your employer. This is important in the context of a (possible) benefit application. Moreover, it is more practical not to have to include all incidents and conflicts that ultimately led to a settlement agreement in the agreement itself. One of the main reasons therefore often included in a settlement agreement is the difference of opinion.

Between parties, a difference of opinion has arisen regarding the manner in which employee should perform his function. Extensive consultations between parties unfortunately have not led to a solution;
Meanwhile, said difference of opinion has acquired a structural character, as a result of which the necessary basis of trust for a fruitful cooperation between parties has lapsed and a solution other than termination of the employment contract is not within the reach of parties;

Have settlement agreement checked

2. Business economic reasons

The settlement agreement is also often used in case of a reorganization. The advantage of including the reason ''business economic grounds'' in a settlement agreement is that the culpability for the dismissal then by definition lies with the employer. After all, it cannot be blamed on an employee that the business economic situation of the company is not good. If the UWV sees in a settlement agreement that the ground for terminating the employment relationship lies in business economic reasons, then the UWV cannot place the culpability of the dismissal with the employee. With this ground, the employee is therefore good regarding the culpability test.

The currently prevailing recession has visible effects within the employer's organization. It is evident that these effects cannot only be combated with the implemented general cost-saving measures. The further necessary cost savings will therefore also have to be realized by the outflow of redundant employees, including employee;

mr. J.A. Kaspers

mr. J.A. (Jeroen) Kaspers


Jurist en Mediator

Jeroen is specialist ontslag en arbeidsrecht. Met succes onderhandelt Jeroen bij vaststellingsovereenkomsten of disfunctioneren. Komt u er niet uit? Raadpleeg Jeroen via kaspers@wolderwijd-juristen.nl of 036 522 7007.

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