An employer may be bound to an offer of financial compensation made to an employee in the negotiation of a severance payment, even though no agreement is reached with the employee. That is the outcome of a recent manifestly unreasonable dismissal procedure at the court of appeal in The Hague.
In the underlying case the employer had displayed a willingness to offer financial compensation, by offering a severance payment based on the provisions of a social plan. Three offers were made over a period of seven months. The employee refused each offer. Since no agreement was reached, the employer applied … Continue Reading