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Settlement agreement, transition allowance, dismissal

What is a settlement agreement?

What is a settlement agreement?

Do not sign before consulting our specialists. For the maximum result!

Dutch Employment Law Explained for Expats Working in the Netherlands


Introduction

If you're an expat working in the Netherlands, understanding your rights under Dutch employment law is essential. Whether you're reviewing your contract or facing dismissal, knowing the basics will help protect your legal and financial position.

Need legal support in English? Get advice on Dutch employment law for expats — first consultation is free.

1. Employment Contracts in the Netherlands

Most expats start with a fixed-term contract. Dutch law allows a maximum of three temporary contracts in three years — after that, your contract becomes permanent.

Your employment contract should include:

  • Job role and responsibilities
  • Gross monthly salary and benefits
  • Working hours
  • Collective Labour Agreement (CAO), if applicable
  • Notice period for termination
Tip: Ask for an English version of your contract and review it carefully before signing.

2. Working Hours, Leave and Sick Pay

In the Netherlands, the standard full-time workweek is 36 to 40 hours. Employees are entitled to:

  • At least 20 vacation days (full-time)
  • Public holidays (depending on employer)
  • 70% sick pay for up to two years
  • Parental, emergency and special leave

3. Dismissal in the Netherlands

Dismissal is highly regulated. Employers must follow proper legal procedures. Common routes include:

  • Redundancy via UWV
  • Dismissal via court
  • Mutual agreement via a settlement agreement (vaststellingsovereenkomst)
Make sure any settlement agreement is WW-proof — it preserves your unemployment benefit rights.

4. Transition Payment (Severance Pay)

Most dismissed employees are entitled to a severance payment. As of 2025:

  • 1/3 of your monthly salary per year of service
Unsure about your severance pay? Check your transition payment calculation with our help.

5. Unemployment Benefits (WW-uitkering)

You may be eligible for Dutch unemployment benefits if:

  • Your dismissal wasn't your fault
  • You worked at least 26 of the past 36 weeks
  • You're available and actively job hunting
  • You're not on sick leave at termination
A signed WW-proof settlement agreement is required for your WW application.
Want to keep your right to unemployment benefits? Make sure your dismissal is WW-proof.

6. Protection Against Discrimination

Dutch employment law protects you from discrimination and unfair dismissal. Employers may not dismiss based on nationality, gender, age, religion, or health condition.

Facing unfair dismissal? Get legal advice from English-speaking employment lawyersget legal aid.

Frequently Asked Questions (FAQ)

(Hier verandert niets — dit blok blijft zoals eerder geleverd.)


Final Call-to-Action

Need help with dismissal or a settlement agreement?
Our English-speaking lawyers specialize in Dutch employment law for expats. Avoid costly mistakes — your first consultation is free.

+31 (0)20 6160 120
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what is a settlement agreement?

Get the most out of your agreement and contact us today.

  • Free telephone consultation

  • Free dismissal proposal check
  • Result guarantee

Never just sign. Let us help you

Many things can go wrong, which can cost you not only a lot of money but even your unemployment benefits (WW).

What can we do for you?

  • we can answer your questions about dismissal and the settlement agreement;

  • we can screen your settlement agreement for unemployment benefit safety, irregularities, pitfalls, the severance payment, etc.;

  • we can advise you on ‘what to do?’

  • we can negotiate with your employer for a better severance arrangement;

  • we can — if you wish — try to prevent your dismissal.

 

 

In any case, with our help you avoid costly mistakes and achieve the best possible result!

Take action now:

Call +31 (0)20 6160 120 or email us. The first advice is FREE

A few things to consider in a dismissal settlement:

Besides the unemployment benefits rights, there are (of course) other matters that must or can be arranged in a dismissal settlement. To give you an idea, below are some topics. 

 

Date of termination of employment contract

Preferably choose a date that falls after the notice period applicable to the employer.

Termination of employment contract
To avoid problems with obtaining unemployment benefits, this should be a 'neutral' reason, such as economic circumstances or a disrupted working relationship that is not the employee's fault.
Severance pay
This is usually an important point. Is the employee entitled to the transition payment, or possibly a higher amount? Ask our specialists about the possibilities.
Is the employee exempted from work?
This can be particularly important in cases of a strained employment relationship or the loss of work during a reorganization.
Are the unused vacation days paid out?
In cases where the employee is granted long-term exemption from work, it is often agreed that the unused vacation days will expire.
Does the employee have to return certain company property (such as a laptop, phone)?
This can be a point of negotiation. It is often agreed that the employee may keep the laptop or phone.
Non-competition clause and non-solicitation clause
Do these clauses remain in effect or do they expire? The expiration of the non-competition clause is especially important for the employee if they want to continue working in the same industry.
Does the employee receive a positive reference letter?
A positive reference letter can, of course, be helpful when looking for another job.
Do the parties agree to final settlement?
If the parties agree to a final settlement, they cannot claim anything beyond what is laid down in the settlement agreement.
More than
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years of experience with dismissal cases
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How do we work?

Contact us for a free and no-obligation consultation*

Your employer offers you a settlement agreement or wants to dismiss you in another way. Then contact our dismissal specialists immediately. You can present your case by phone or email. You can do this without worrying about costs. The first advice is FREE*.

(*) unless otherwise agreed with you

We review your situation and provide advice

Our specialists assess your situation. We explain whether you can be dismissed and whether the proposed settlement agreement looks good or not. What 'pitfalls' does the settlement agreement contain? And what are the areas for improvement? We pay attention to the security of your unemployment benefits and the amount of severance pay (can it be increased?), as well as other important matters.

If your employer does not offer a settlement agreement, but you have been dismissed immediately, or if a dismissal procedure is looming at the subdistrict court or the UWV, we can also assist you. We explain what your chances are in such a procedure and how we can help you defend yourself or avoid the procedure altogether.

The solution for your situation

If the settlement agreement offered by your employer is a fair offer, we will let you know as soon as possible. But usually, there are points for improvement. Think, for example, of a higher severance payment, exemption from work, etc. We can then negotiate with your employer for a better arrangement. Usually, this succeeds! And most of the time this can be done at no cost to the employee because we often manage to have the costs reimbursed by your employer.

If dismissal without a settlement agreement is looming, we can also help you. We will defend you before the court or the UWV, or try to negotiate a good severance agreement for you.

With our experience of more than 20 years, we achieve the best possible results for you!
So present your case to us immediately. You will know where you stand within 24 hours.

Example of a settlement agreement

Our specialists have prepared a sample settlement agreement for you. You can adjust the example according to the specific arrangements you make with your employee or employer.

Order the editable sample settlement agreement below.

€ 24,50

Sample employee letter

Your employer wants to terminate your employment contract and offers you a settlement agreement in this regard. What is a wise response to that offer? We have prepared a sample letter for your initial response. Using the sample letter, you remain available for work and thus retain your right to wages. You also request time to respond to the employer's dismissal proposal and to seek advice.

Order the sample letter below.

Questions about your settlement agreement?

Would you like to have the dismissal proposal reviewed?
The initial advice on your settlement agreement is FREE!

Don’t hesitate! Ask for help with dismissal and avoid costly mistakes.

Our experienced lawyers and legal experts assist you with your dismissal case and do everything possible to achieve the best possible outcome for you, such as a higher severance payment. We have over 20 years of experience and have handled more than 15,000 dismissal cases.

Dismissal is a significant event where many things can go wrong. Don’t hesitate to contact us for advice and legal assistance.

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