Under Dutch employment law, the termination of the employment agreement in reorganizations and the compensation package for employees is often handled by way of a social plan. This is developed by a company to embody the mutual consent of both parties in terminating an employment agreement. It outlines the regulations and options available to employees in the event of a company reorganization. For example: re-employment opportunities that can be found inside or outside the company, calculation of severance payment and notice period and termination date. A social plan is generally constructed through consultation between the employer and the employee representative body (unions or a works council). It is in most cases a useful method to prevent court proceedings. Legal assistance with drafting the plan is highly recommended.