End employment of an employee

Go to the profile of the employee you want to end the employment of. Click the ⋮ icon next to Employment, click End employment.

Enter the termination details:

End date

The last date of the contract of the employee. Make sure to put it on the end of a month. If you put it on the 1st day of the month, the employee still will be paid for 1 day of work.

Initiator

Who requested the termination? The employee or you as the employer?

Termination reason & termination pay

The reason for termination. This will be send to the tax office and UWV, which will be done automatically when the last payslip of this employee is paid. Depending on the termination reason you are obliged to pay transition pay.

You have to pay transition pay when you terminate an employee with one of the following reasons:

Probation period not completed successfully - code 1 of Belastingdienst

Dismissed through court order (in case the reason isn't because of extreme negligence of the employee) - code 3 of Belastingdienst

Long-term work disability - code 5 of Belastingdienst

Business economic reasons - code 6 of Belastingdienst

Temporary contract not renewed - code 30 of Belastingdienst

Regrettable exit

Would you hire this person again? This is used to keep track of how many exits could have been prevented in the future, which is a KPI to steer your restaurant group on.

Severance pay

You can use severance pay in case you agreed with the employee to pay them a certain amount when they leave. Often agreed on through a settlement agreement (vaststellingsovereenkomst, or VSO, in Dutch).

Send and finalise the draft termination

After you've added the termination details, you can finalise the termination by informing the employee of the termination.

The employee is still employed until you officially finalise the termination. You are legally obliged to inform the employee about it.

The termination code and end date are added by default to the termination email. This is also information you are legally obliged to communicate.

Finalise termination payout

After you've finalised the termination, you will need to finalise the termination payout.

The termination payout consists of:

Any holiday pay that is saved for the employee.
The outstanding overtime balance. If the employee has made overtime, you have to pay them for that overtime. If the employee worked too little, you can deduct hours that they should've worked from their final payslip. See the image above on how to decide how many hours to pay out, withhold, or do nothing with the hours.
The outstanding leave entitlement balance. If the employee hasn't taken enough holiday, and still has some leave entitlement hours left, you have to pay them those hours. If they took too much holiday, and have a negative leave entitlement balance, they have to pay you back and you can deduct those hours from their final payslip.
Transition pay, decided in the draft termination based on the termination reason.