Settlement agreement in Dutch education

Employment in Dutch education can also end by mutual consent. The applicable collective labour agreement (CAO), WW benefits, any supplementary benefit scheme and severance arrangements must be assessed together.

A settlement agreement can also be used in education

A school board or educational institution and an employee may agree on ending the employment relationship. Those arrangements are recorded in a written settlement agreement.

The general dismissal rules continue to apply, but the education sector has additional points requiring attention. The precise rules depend on the education sector, applicable CAO and nature of the appointment.

Key pointDo not assess the settlement agreement in isolation: the applicable education CAO and benefit scheme also determine whether the proposed terms are appropriate.

Discussing a settlement agreement in education

What makes dismissal in education different?

Alongside the ordinary WW rules, sector-specific supplementary benefit schemes, the employer’s responsibility for benefit costs and CAO provisions may apply in education. A termination date that appears favourable can therefore still have adverse consequences.

Applicable CAO

Check whether the CAO for primary, secondary, vocational or higher professional education, or for universities, applies. Pay attention to any specific notice periods, redeployment provisions, leave rules, supplementary entitlements and procedural requirements.

WW and supplementary benefits

For WW purposes, it is important that the employer initiated the termination, that no urgent or culpable ground is recorded and that the correct notice period is observed.

A supplementary benefit does not automatically follow from every settlement agreement. Conditions differ by education sector and scheme and must be checked separately before signing.

Compensation and financial arrangements

Under a settlement agreement, the parties agree their own severance payment. Use the statutory transition payment as an important reference point, while also considering the strength of the employer’s case, remaining contract term, loss of income and possible supplementary entitlements.

Records and the ground for termination

The employer should explain why termination is proposed and which alternatives have been investigated. Underperformance, restructuring and a disrupted employment relationship each require different supporting records and create different negotiating positions.

Education employee reviewing terms and the applicable CAO

Which terms should be checked?

Check the termination date, garden leave, salary, holiday entitlement, year-end payment, severance payment, pension, study costs, non-compete or non-solicitation clause, certificate, legal costs and full and final discharge. Also record when the final payment will be made.

Have your proposal reviewed

A careful process from proposal to signature

Receive the proposalRequest the ground for termination and all proposed terms in writing.
Collect the applicable rulesCheck the employment contract, CAO, appointment and supplementary benefit scheme.
Calculate the consequencesAssess WW, any supplementary benefit, the termination date and compensation.
Negotiate and reviewFinalise the terms only after a complete review.

What does this mean for your position?

Do not sign during the first meeting. Request the complete proposal and underlying reason in writing, collect your employment contract and CAO, and have the financial and benefit consequences calculated.

Only then should the wording, termination date and other terms be negotiated. The statutory reflection period must be correctly stated in the agreement.

Read about WW benefits

Help with negotiations

More about dismissal and your rights

An education employee does not automatically have a weaker or stronger position than an employee in another sector. The main difference lies in the interaction between the CAO, supplementary benefit scheme, the employer’s benefit-cost exposure and the specific ground for termination.

Dismissal grounds and situations

Settlement agreement and WW benefits

Settlement agreement in a restructuring

About the author

Mr. Edwin van Jaarsveld

Edwin van Jaarsveld has over 20 years of experience with dismissal cases and regularly publishes about them.

Edwin’s expertise can also be found on:

Have you received a dismissal proposal from an educational institution?

Have your employment contract, CAO and dismissal proposal reviewed together before agreeing. This ensures that both general dismissal law and the education-sector rules are considered.

Have your situation assessed

Settlement agreement in Dutch education

A settlement agreement can also be used in education