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A recent ruling by the subdistrict court in Overijssel once again highlights the importance of not treating a settlement agreement as a mere formality. In this case, a former employee of the University of Twente had concluded a settlement agreement with his employer, which included a confidentiality clause. The parties agreed not to make any statements about the reasons for and the settlement of the employment relationship.
However, things went wrong. In a radio interview, the rector magnificus of the university spoke about scientific integrity. During that interview, the employee's departure was also discussed. His name was mentioned, the reason for his departure was discussed and reference was made to “a lot of emotion” and poor communication.
The employee believed that this constituted a breach of the confidentiality clause and took the matter to court. The court ruled in his favour. The subdistrict court ruled that there had indeed been a breach of the confidentiality clause. However, the court found that this was a single breach and took into account that the university had taken immediate measures to have the interview taken offline. Ultimately, the subdistrict court awarded a fine of €22,000.
Although this amount is lower than the millions claimed by the employee, the case clearly shows how seriously such agreements must be taken. A settlement agreement is intended to bring peace and put an end to the employment relationship. This can only be achieved if both parties adhere to the agreements laid down in the agreement.
Our advice to entrepreneurs:
Be careful with the agreements in a settlement agreement, especially when it comes to confidentiality. What is agreed in the consultation room should not be disclosed in an interview or on social media. Keep in mind that statements, even unintentional ones, can have legal and financial consequences.
Do you have questions about confidentiality clauses or would you like to enter into a legally binding settlement agreement with an employee? Please contact Dennis Oud, Tim van Riel, Tessa Sipkema or Elke Hofman-Bijvank.
You can read the ruling here.
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