The Employment Settlement Agreement is a critical document used in Belgian employment relationships when both employer and employee agree to terminate their employment relationship on mutually accepted terms. It serves as a legally binding contract that complies with Belgian labor law requirements, including specific provisions for notice periods, severance calculations, and social security implications. This document is typically used when parties wish to avoid potential disputes and create certainty around the termination process, often incorporating provisions for confidentiality, non-competition (where applicable), and future references. The agreement must address mandatory Belgian legal requirements while also considering tax implications and any specific industry regulations. It's particularly valuable in situations involving senior executives, sensitive departures, or when there's a need to document specific post-employment obligations.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Brief history of employment relationship, reason for termination, and context for the settlement
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specific date of employment termination and last working day
5. Settlement Payment: Details of the settlement amount, payment terms, and tax treatment
6. Mutual Release: Mutual waiver of claims between parties, subject to Belgian law restrictions
7. Company Property: Requirements for return of company property and confidential information
8. Confidentiality: Obligations regarding confidentiality of settlement terms and company information
9. Tax Indemnity: Provisions regarding tax liability and indemnification
10. Legal Advice: Acknowledgment that parties had opportunity to seek independent legal advice
11. Governing Law: Confirmation that Belgian law governs the agreement
12. Execution: Signature blocks and execution requirements
1. Non-Compete Obligations: Restrictions on future employment, if applicable and legally enforceable under Belgian law
2. Reference: Terms regarding future employment references
3. Ongoing Benefits: Any continuation of benefits post-termination
4. Outplacement Services: Details of any outplacement support provided
5. Share Options/Benefits: Treatment of outstanding share options or other benefits
6. Internal/External Communications: Agreed approach to announcing the departure
7. Post-Termination Assistance: Terms for any required assistance after termination
8. Garden Leave: Terms of any garden leave period before final termination
1. Schedule 1 - Payment Calculation: Detailed breakdown of settlement payment, including salary, notice pay, and other benefits
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Tax Summary: Summary of tax treatment of various payment components
4. Schedule 4 - C4 Form: Standard Belgian unemployment document to be completed
5. Schedule 5 - Certificate of Employment: Standard employment certificate required under Belgian law
6. Schedule 6 - Outstanding Benefits: List of any outstanding benefits and their treatment
7. Appendix A - Data Privacy Notice: Required information about handling of personal data post-employment
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