What to check in a settlement agreement
Check the key legal, financial, and practical risks before agreeing.
Don't sign until everything is correct.
A settlement agreement sets out the final terms regarding the termination of your employment. Therefore, take the time to read the proposal, ask questions, and have any changes incorporated.
Check not only what is stated but also what is missing. Verbal promises offer little certainty if they are not included in the final agreement.
First line
Do not agree immediately or sign under time pressure.
Request a full draft and keep a record of all relevant communication.
1. Are the facts correct?
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Employer and employee are correctly identified
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Job title, length of service, and contract type are correct
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The initiative for termination is accurately recorded
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The reason for termination is neutral and factually correct
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There is no mention of urgent cause or unfounded accusations
2. Is the agreement safe for unemployment benefits?
Pay attention to who initiated the termination, the reason for dismissal, the issue of culpability, and the end date. Friendly wording or a verbal promise does not guarantee unemployment benefits; UWV makes the final determination regarding eligibility.
3. Is the end date correct?
Check the applicable notice period and ensure the end date aligns with it. If the notice period is too short, unemployment benefits might only start after salary payments have already ceased.
4. Is the cooling-off period stated?
Employees generally have fourteen days to rescind the written agreement. Without a written statement, this period may extend to 21 days.
5. Is the compensation appropriate?
Do not limit your comparison to the statutory transition payment. Length of service, the reason for dismissal, litigation risks, and negotiating positions may allow for a different compensation amount.
6. Is the final settlement complete?
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Salary up to the correct end date
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Holiday allowance and outstanding holiday entitlement
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Bonus, commission, or thirteenth-month pay
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Expense claims and other entitlements
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Payment date and reimbursement of legal costs
7. What happens between now and the end date?
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Continuing work or release from duties
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Retention of salary and employment conditions
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Handover and availability
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Leave days during the release period
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Returning laptop, phone, and lease car
8. Have future restrictions been arranged?
Check non-competition and non-solicitation clauses, confidentiality, training costs, and side activities. Also arrange for a positive letter of recommendation and agreements regarding references.
9. What is missing?
Consider pension, bonuses, shares, training, outplacement, communication wording, and full and final discharge. Check whether a collective labour agreement (CLA) or social plan grants additional rights.
10. Is there a special risk involved?
Extra caution is required in cases of illness, pregnancy, a fixed-term contract, an employment dispute, or potential summary dismissal. Standard wording may be unsuitable in such situations.
Final check before signing
Everything is in writing
All promises and amendments have been included in the final document.
Everything is clear
You understand the financial, legal, and practical implications of every agreement.
Everything has been checked
Facts, calculations, unemployment benefits (WW), deadlines, and restrictive covenants have been verified.
Practical tool for your initial response
Respond carefully without immediately agreeing to the dismissal proposal.
Sample letter following receipt of a settlement agreement
Not yet ready to agree to the terms? Use this sample letter to acknowledge receipt, confirm your continued availability for work, and request time for a legal review.
Want to be sure nothing is missing?
Have your settlement agreement (VSO) checked for errors, risks regarding unemployment benefits (WW), and negotiation opportunities.
Frequently asked questions
No. Ask for time to review the proposal and ensure necessary changes are incorporated into the final text first.
Incorrect wording regarding who initiated the termination, the reason for dismissal, or culpability—as well as an incorrect end date—can have consequences. The UWV (Employee Insurance Agency) ultimately determines eligibility for unemployment benefits.
No. Salary, holiday entitlement, bonuses, contractual clauses, release from work duties, legal costs, and the final discharge clause can also be financially significant.
Ensure every important promise is included in writing in the final agreement before you sign.
Yes. You are not obliged to accept the initial proposal. Negotiate strategically regarding the entire package of terms.
Reviews
Professional advice
Your dismissal specialists helped me very well with professional advice following a labor dispute I had with my employer. They clearly have experience with settlement agreements. I definitely needed their assistance to reach a good agreement with my employer. Thank you for the clear communication and all the help!
My thanks
My thanks to Mr. Geradts,
With great professionalism, decisiveness, speed, and effectiveness, I was able to conclude a good settlement agreement. If your first counteroffer hadn’t been so strong, I wouldn’t have been able to secure even half of it.
Not only because of the money, but certainly also to be able to close my employment history with dignity.
I wish every employee in such a situation could have such a skilled lawyer!
Good severance payment
I want to sincerely thank you for the excellent help I received when my employer wanted to terminate my employment contract with a settlement agreement.
You advised me not to sign the agreement and, through negotiations, secured my unemployment benefits and severance payment.
Good advice
We are an employer in a cyclical industry. Sometimes there is plenty of work, other times too little.
Therefore, we regularly have to part ways with employees for “economic reasons.”
We use the services of vaststellingsovereenkomst.org for this. They know exactly how a dismissal request to the CWI or the subdistrict court should be prepared.
Even in cases where an employee underperforms or behaves inappropriately, we have had good experiences with the lawyers at vaststellingsovereenkomst.org.
They are always available to us with sound advice and have never disappointed us.
Difficult situation
A dismissal specialist helped me in a very difficult situation. I had been so foolish to sign a letter in an emotional state, resigning myself. Because of this, I lost my salary and wasn’t entitled to unemployment benefits. Vaststellingsovereenkomst.org managed to reverse this. They were able to prove that I signed under pressure and didn’t fully understand what I was doing.
In the end, I left with a good severance payment and now I have another job. Without the help of Vaststellingsovereenkomst.org, I would be in serious financial trouble right now.
Higher severance payment
I would like to sincerely thank you for the quick and professional assistance.
My employer unexpectedly presented a settlement agreement to terminate my employment contract, but thanks to your help, I received a higher severance payment and compensation for my vacation days.
Excellent assistance provided
Recently, you helped me with my dismissal case. I am very satisfied with the assistance provided. The lawyer was very involved and well-versed in dismissal law. He understood well that I didn’t want a long procedure but wanted the matter resolved quickly.
That solution came swiftly and to my full satisfaction. I didn’t even have to visit your office. Communication was handled by phone and email, so you were always accessible.
My rating: a solid 10.
Dismissed but still well helped
Because of a conflict at work that got seriously out of hand, I was dismissed immediately (summary dismissal). I had behaved badly during that conflict, so I could understand why my boss took such a harsh measure.
But I still had to fight the dismissal, because I had no job and no right to unemployment benefits. Fortunately, the dismissal specialist dared to take the risk and started a procedure against my employer on a No Cure No Pay basis. Without the possibility of No Cure No Pay, I wouldn’t have dared to do it myself.
In the end, after two procedures, the lawyer from vaststellingsovereenkomst.org succeeded in securing my right to unemployment benefits and even a severance payment.
Dismissal assistance
I worked with great pleasure from the age of 18 at a flower exporter in Aalsmeer.
When I was 54, my employer applied for dismissal through the CWI for economic reasons. At that time, I engaged Mr. Edwin van Jaarsveld from Ontslagspecialist for dismissal assistance.
A dismissal permit could not be avoided because my employer was really in financial trouble. Since my employer offered only a very small severance payment, Mr. van Jaarsveld advised me to start proceedings at the subdistrict court.
That turned out to be successful. The court awarded a severance payment of €94,000.
Thanks to the dedication and excellent legal knowledge of vaststellingsovereenkomst.org, I achieved this great result. Kudos!
Very pleasant experience
We are an international company based in Amsterdam. We have engaged Vaststellingsovereenkomst.org as our regular legal counsel and legal assistance for business matters. They successfully concluded our first legal case immediately.
I have found the collaboration with the lawyers at Vaststellingsovereenkomst.org to be very pleasant. We complement each other well regarding key issues and evidence.
Rarely have I experienced such excellent legal service and attention. I would definitely recommend Vaststellingsovereenkomst.org in every respect; their rates are also very reasonable!
