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Whether it's due to economic reasons or personal grounds (underperformance, culpable behavior, disrupted working relationship), sometimes it is better to terminate the employment contract with an employee. It is always preferable for the employer and employee to discuss the terms of a potential termination. If the parties can reach an agreement, they can document the terms in a settlement agreement (termination agreement).
Are you about to discuss terminating the employment contract with your employee and offer them a settlement agreement, or have you, as an employee, received one from your employer? De Haij & Van der Wende Lawyers can guide you through this process and evaluate an offer to terminate the employment contract.