Right now, in the midst of the financial crisis, many companies will need to let go of (some) of their staff members. Should you lose your job in The Netherlands, you could be entitled to financial compensation from your employer. In The Netherlands this is often referred to as a “Golden Handshake”. You will only be entitled to compensation if the departure from the company is a forced one. (So not if you give notice yourself). In the case of a forced departure, it is often possible to reach agreement between the employer and his employee regarding the amount of the financial compensation. Legal advice is usually sought. However, if you cannot reach agreement on the terms of the departure, the court will have to decide.
The “Golden Handshake” can be applicable in case of a forced resignation for causes that cannot be blamed on the staff member. However, if the reason for the (collective) resignation is the poor financial situation of the company, the chances for financial compensation will decrease considerably. Obviously, the employer will have to proof to the authorities that the company is not in good financial shape. Continue reading “Golden Handshake”