A settlement agreement is an agreement by which an employer and an employee terminate the employment relationship by mutual consent. It is a legally binding document that sets out arrangements regarding, among other things, the termination date, severance pay, the notice period, and any other terms and conditions. In practice, the terms “settlement agreement” and “termination agreement” are often used interchangeably.

We strongly recommend this. By signing a VSO, you waive important rights, including protection against dismissal. Errors in the wording could result in you receiving no unemployment benefits or receiving them too late, your severance pay being too low, or a non-compete clause remaining in effect unnecessarily. Our 35-point review ensures you don’t sign anything you’ll later regret.

The 35-point review is a legal review conducted by an employment law attorney to examine the contents of your settlement agreement. Among other things, we verify whether the settlement agreement complies with unemployment insurance regulations, whether the severance pay is reasonable, whether the notice period is correct, whether the clauses are properly worded, and whether there are any pitfalls. You will receive a clear report outlining specific areas of concern and recommendations for improvement.

In more than 95% of cases, yes. Most settlement agreements include a provision stating that the employer will contribute to the costs of legal advice, usually between €500 and €1,000, excluding VAT. If such a cost reimbursement is not included in the proposal, you can request it. Employers almost always agree to this, as it is in their interest that you sign the agreement with full knowledge of the facts.

Once we receive your VSO, we will typically contact you within 24 hours. In most cases, the review and report will be ready within 48 hours. In urgent situations—for example, if your cooling-off period is about to expire—we can expedite the process.

No. A settlement agreement is based on voluntary consent. Without your signature, the employer cannot terminate the employment contract in this way. If you do not sign, the employer must initiate a dismissal procedure through the UWV or the subdistrict court. That takes time and money, and the outcome is uncertain. So you have leverage in the negotiations.

In the case of termination by mutual agreement, the transition payment is not automatically required by law. In practice, however, a payment is almost always included in the termination agreement, usually at least equal to the statutory transition payment. Depending on the circumstances—such as the reason for termination, your years of service, and the employer’s financial position—there is often room for a higher payment.

Yes, provided the termination agreement has been drafted correctly. Among other things, it is important that the initiative to terminate the employment relationship lies with the employer, that a neutral ground for termination is included, and that the notice period is correctly reflected in the termination date. Errors in these areas could result in the UWV refusing or delaying your unemployment benefits. That is precisely why a legal review is so important.

Once you have signed the contract, you have a 14-day cooling-off period. During this period, you may revoke your decision in writing without giving a reason. If your employer has not informed you in writing of this cooling-off period, the period is extended to 21 days. If you revoke the contract within the cooling-off period, the agreement is void and your employment contract remains in effect.

Yes, virtually all settlement agreements are negotiable. Consider the initial proposal as a starting point. Common points of negotiation include a higher severance package, a more favorable termination date, exemption from work, a positive reference, or the removal of a non-compete clause. You are in a strong position because the employer needs your consent. In the vast majority of cases, we achieve a better outcome than the initial offer.

In principle, a non-compete clause remains in effect even if you leave via a mutual termination agreement (VSO), unless you make other arrangements. It is wise to explicitly state in the VSO what happens to the clause. Many employers are willing to waive or relax the non-compete clause in the event of termination by mutual agreement. If the VSO does not address this, you should assume that the original clause remains in effect.

This is generally not recommended. In many cases, there is a prohibition on termination during the first two years of illness. If you leave your job due to illness, you are generally not entitled to sick leave benefits or unemployment benefits, because you are not available for the labor market. You then risk being left without an income. It is often wiser to wait until you are (nearly) recovered before signing a voluntary termination agreement, or to make special arrangements that protect your income.

Unused vacation days and accrued vacation pay are generally paid out at the end of your employment. The employment contract usually specifies how many vacation days you have remaining and that these will be paid out with your final paycheck. The same applies to other outstanding entitlements, such as bonuses or overtime pay. It is important that this be clearly stated in the contract.

A final release means that, once the VSO has been executed, neither the employer nor the employee can make any further claims against the other. By doing so, both parties agree that all outstanding rights and obligations have been settled. Make sure that any entitlements you wish to secure are explicitly included before signing, because once the final release is in effect, you can no longer revisit them.

If you do not agree, your employment will continue as usual. The employer will then have to take a different route, such as initiating dismissal proceedings with the UWV or the labor court. This costs the employer time and money, and the outcome is uncertain. On the other hand, the (financial) outcome may be less favorable. Refusing to sign may also lead the employer to come up with a better offer. So you won’t lose your job immediately if you don’t sign.

Negotiating on your own comes with risks. You often lack legal knowledge, an understanding of what is standard in the market, and bargaining power. An employment lawyer knows exactly what to look out for and how employers think. This allows you to get the most out of your settlement and avoid mistakes that could jeopardize your unemployment benefits or rights. Furthermore, the costs are almost always covered by the employer.