Negotiating a settlement agreement: improve your VSO terms

Short answer

You can negotiate a settlement agreement as long as you have not yet agreed. Often, improvements can be made to the severance pay, end date, continued salary payment, release from work, bonus, and non-compete clauses. How much room there is mainly depends on the reason for dismissal, the position of your employer, and your contract. Also, have the impact on your unemployment benefits checked before signing.

Which terms can you improve?

Higher severance pay

With a VSO, the statutory transition payment is not automatically owed. You can agree on a severance payment, possibly higher than the calculated transition payment. The reasonableness of the amount is related to your years of service, salary, and especially the legal validity of the dismissal.

Later end date and extended salary

With a later end date, you may retain salary and other employment benefits for a longer period. Pay attention to the applicable notice period: if the end date is too early, your unemployment benefits may start later than your employment ends.

Release from work with retention of salary

You can agree that you do not have to work until the end date, while salary and other arrangements continue. Also, specify how holiday entitlement is handled during this period.

Bonus, thirteenth month, and holiday entitlement

Check if you are entitled to a pro-rata bonus, commission, a thirteenth month, and payment of outstanding leave. Without explicit agreements, disputes can arise afterwards, especially when the settlement agreement includes full and final discharge.

Non-compete and non-solicitation clause

Ask your employer to remove or limit a non-compete or non-solicitation clause. This way, you remain better able to accept a new job. A positive reference, training budget, and reimbursement of legal costs are also negotiable.

Practical examples: what improvements are possible?

Reorganisation – fictitious example. An employee receives a VSO with limited severance pay and an immediate release from work without clear agreements about holidays. After assessing the reorganisation and redeployment options, a counter-proposal can be made with a higher compensation, longer salary payment and clear leave agreements.

Underperformance – fictitious example.

An employee receives a VSO for inadequate performance, while a serious improvement process is lacking. A legally substantiated counter-proposal can provide room for a later end date, better compensation and the expiry of the non-competition clause.

How do we guide the negotiations?

1. Audit: we assess your VSO, employment contract, reason for dismissal and financial claims.

2. Advice: you will receive a clear overview of risks, opportunities and a realistic counter-proposal.

3. Negotiation: if desired, we will consult with your employer on your behalf.

4. Conclusion: we check whether all agreements reached have been recorded in a legally correct manner.

Our lawyers have more than 25 years of experience with labour law and dismissal cases. The first consultation is free; for any further assistance, we make clear cost agreements in advance. Often, a full reimbursement of the costs by the employer can be arranged. We are committed to this!

Can I always negotiate a settlement agreement?

You can always propose changes as long as you have not agreed. Whether your employer accepts them depends on the circumstances and your negotiating position.

Can I arrange time off from work and extended salary?

Yes. Explicitly agree that you are exempt from work until the end date while retaining salary and other employment conditions.

Do I have a cooling-off period after signing a settlement agreement?

Yes, in principle fourteen days, or three weeks if the employer does not mention the cooling-off period in writing. Exceptions apply, including repeated use within six months.

Official sources

Further information: UWV – Termination by mutual consent: uwv.nl/nl/ontslag/werknemer-ontslaan

Government – Rules on dismissal law: rijksoverheid.nl/themas/werk/ontslag/nieuwe-regels-ontslagrecht