
What can you negotiate in a settlement agreement?
Discover which terms you can propose and how to substantiate your requests.
You can attach conditions to your consent
You are not obliged to accept the employer's initial proposal. You can indicate the conditions under which you are willing to terminate the employment contract by mutual consent.
In this context, the word "demand" usually means making a negotiation proposal. Only statutory or existing contractual entitlements are enforceable without a new agreement. Other conditions only come into effect if both the employer and the employee agree to them.
A good starting point
Determine your minimum, your desired outcome, and the points where you have room to negotiate.
An appropriate severance package
You can propose a higher severance payment than the one stated in the initial offer. A specific amount is not automatically guaranteed in a settlement agreement.
Justification:length of service, reason for dismissal, litigation risk, prospects of finding other work, and the overall financial consequences.
An appropriate and favourable end date
At a minimum, request an end date that takes the applicable notice period into account. Sometimes, a later date is more advantageous financially or practically.
Justification:salary for the remaining period, seamless transition to unemployment benefits, and time to find new employment.
Release from work duties
You can request to be released from work duties until the end date while retaining your salary and employment benefits.
Justification:peace of mind during a conflict, time for job applications, and an orderly handover.
A comprehensive financial settlement
Ask for clear agreements regarding holiday entitlement, holiday allowance, bonuses, commissions, expense claims, and other outstanding entitlements.
Justification:employment contract, collective labour agreement (CLA), remuneration scheme, and accrued rights.
Reimbursement of legal costs
You can ask the employer to make a reasonable contribution towards the costs of legal review and negotiations.
Justification:both parties benefit from a clear and legally sound agreement.
Lapse of restrictive covenants
Request the full or partial waiver of non-compete, non-solicitation, side-activity, and study-cost repayment clauses.
Justification: The employer is terminating the employment, and restrictions could hinder finding new work.
Positive letter of recommendation and reference
Agree in advance on the text of the letter of recommendation, a neutral departure announcement, and arrangements regarding references.
Justification: Clarity prevents disputes and supports the search for new employment.
Training, coaching, or outplacement
You can request a budget for assistance in finding other work, training, or career counselling.
Justification: Sustainable employability, labour market prospects, and a smooth departure.
Favourable practical arrangements
Consider retaining or taking over a phone, laptop, or lease car; time off for job interviews; and agreements on communication with colleagues and clients.
Justification: Practical value, continuity, and a professional conclusion.
Limited final discharge
Request exceptions to the full and final discharge for claims that are currently unknown or will be determined later, such as a variable bonus or tax adjustment.
Justification: Avoid unintentionally waiving rights that have not yet been calculated or identified.
How do you determine what to ask for?
Necessary
Corrections regarding unemployment benefits, the end date, facts, and existing financial entitlements.
Important
Terms of significant financial or practical value, such as severance pay and contractual clauses.
Desirable
Additional support or practical benefits available for negotiation or trade-offs.
Substantiate every proposal
A concrete and coherent counter-proposal works better than a random list of wishes. Explain what problem a change solves and the value it holds for both parties.
Always assess the overall package
Higher severance pay might be less advantageous if the end date is brought forward or if significant clauses remain in effect. Therefore, compare every new version as a complete package.
Do you know what you can ask for?
Have your proposal reviewed and determine where there is the most room for negotiation.
Frequently asked questions
Can I demand any term I want?
You can propose terms, but not every wish is enforceable. A final agreement requires the consent of both parties.
Can I ask for more than the statutory transition payment?
Yes. In a settlement agreement, parties can agree on a different severance payment. The employer is not obliged to automatically accept the proposal.
Can I ask to be released from my work duties?
You can propose this as a condition. Clearly stipulate the retention of salary, holiday entitlement, and availability.
Who pays my legal costs?
Reimbursement of legal costs is often negotiable, though not automatically mandatory in every situation.
Should I state all my requests at once?
A coherent counter-proposal is usually the best approach. Determine in advance which points are essential, important, and desirable.
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