Are you being laid off under a settlement agreement ( VSO)? If so, you’re probably wondering: How many months’ salary will I receive? Since July 1, 2015, a statutory minimum has been in effect: the transition allowance. This has served as the baseline ever since. But in practice, there’s often room to negotiate for more. In this blog, we’ll explain what to look out for and how to secure the best possible deal.

Since 2015: Right to a transition allowance upon termination

Since the introduction of the Work and Security Act (Wwz) on July 1, 2015, as an employee, you are entitled to a transition payment upon termination, provided the termination is initiated by the employer. This statutory payment is the minimum you are entitled to receive, in principle even in the case of termination with a settlement agreement.

The transition payment is calculated as follows:

• 1/3 of a month’s salary for each year of service
• The compensation takes effect on the first workday
• The salary that counts toward this calculation is the gross monthly salary, including vacation pay, bonuses, and fixed allowances

Example: Do you earn €3,000 gross per month and have you been with your employer for 6 years? In that case, your transition payment is:
6 x 1/3 x €3,000 = €6,000 gross

But keep in mind: there’s some room for negotiation

Although the transition payment serves as the legal basis, the parties to a settlement agreement are free to deviate from it. This means you’re entitled to more—provided you negotiate effectively. The number of months’ salary you receive depends largely on the following factors:

How strong is the employer’s case?

Employers cannot fire you without cause. They must be able to demonstrate that there is a reasonable basis for termination, such as poor performance, reorganization, or a strained working relationship. And that must be properly substantiated.

Is the case weak or incomplete? If so, that’s your bargaining power. In such a case, an employment lawyer can negotiate a much higher settlement for you—sometimes as much as 3, 6, or even 12 months’ salary.

What are your risks?

Sometimes it’s better for an employee to agree to leave. For example, in cases of long-term sick leave, the threat of immediate termination, or a well-documented record of poor performance. In such cases, the negotiating position is different, but even then, you can often still reach a favorable deal that goes beyond the legal requirements.

What is the standard severance pay?

In practice, at Arbeidsadvocaat.nl, we see that employers often use the statutory transition payment as a starting point for an initial termination offer. In practice, there is almost always room for negotiation, which is partly determined by the extent to which the employer has reasonable grounds for termination. In addition, supplementary agreements can be made regarding, for example:

• Payment for Vacation Days
• Leave of Absence with Pay
• Reimbursement of Legal Fees
• Positive evaluation and positive references
• Outplacement Program

Always have your VSO inspected by a specialist

A settlement agreement is legally binding. If you sign it without seeking advice, you could lose your right to unemployment benefits or end up accepting a settlement that is too low. It is therefore very important to seek legal advice from an attorney or legal professional who specializes in employment law. At Arbeidsadvocaat.nl, we review your settlement agreement for legal accuracy across 35 points for €500, and we can help you negotiate a better settlement. Our attorneys are skilled at assessing the terms under which an employer is willing to “settle” and will ensure that you receive the best severance package possible.

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This blog was written by Stijn Blom, Esq., an employment law attorney at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists employers and employees on a daily basis with a wide range of employment law issues. From dismissal cases to drafting watertight agreements and policies—with his practical and personalized approach, he helps employers and employees move forward. Want to learn more? Visit Stijn’s page.

Arbeidsadvocaat.nl is happy to assist you if you have any questions about severance pay. Please feel free to contact us.

August 2026