During an employment dispute, you may find a settlement agreement (VSO) placed in front of you with a request to sign quickly. That is precisely the moment not to act hastily, but instead to negotiate calmly. With the right approach, you can often achieve better terms than your employer’s initial proposal.
Why negotiating pays off with a settlement agreement
A settlement agreement is not an end point, but a starting point for negotiation. Employers deliberately make an initial offer that leaves room for adjustment. Those who know the rules of the game are in a stronger position at the negotiating table.
During a dispute, the employer often wants to reach a resolution quickly. This gives you, as the employee, a negotiating position. You do not have to accept the first proposal, and in most cases more is achievable than you might think.
The most important points to negotiate
A settlement agreement consists of more than just a redundancy payment. Many employees focus exclusively on the monetary amount, whilst there are also other terms that can significantly affect your situation after dismissal.
When negotiating, pay attention to at least the following elements:
- Redundancy payment: Has the statutory transition payment been calculated correctly? Is there room for an additional payment, particularly if the dispute arose partly due to the employer’s actions?
- End date: A later end date means a longer income and a better starting position for your unemployment benefit claim.
- Neutral reason for dismissal: Ensure the settlement agreement states that the dismissal is not your fault, so that your entitlement to unemployment benefits is not put at risk.
- Release from work: It is frequently agreed that you no longer need to work during the remaining notice period, but will continue to receive full pay.
- Final settlement: Consider accrued holiday days, any bonus, or a thirteenth month’s pay.
- Confidentiality and reference letter: Agree on how your departure will be communicated externally and ensure you receive a positive reference letter.
The right strategy for negotiations
Negotiating a settlement agreement requires preparation. Know what you want, but also be aware of the limits of what is reasonable. A few practical guidelines:
- Do not respond immediately: You are entitled to time to consider. Take it, even if the employer applies pressure.
- Set priorities: Decide in advance which points matter most to you. Not every point carries equal weight.
- Support your counter-proposal: A well-reasoned argument strengthens your position. Refer, for example, to the length of your employment, your position in the labour market, or the employer’s role in the dispute.
- Keep communication in writing: What is set out in an email is easier to evidence later than a verbal commitment.
- Do not be intimidated: Remarks such as ’this is our final offer’ are often a negotiating tactic, not a legal reality.
When is the employer willing to offer more?
An employee’s negotiating position is stronger when there is doubt as to whether the dismissal is legally defensible. Consider situations where the employer would find it difficult to demonstrate that the grounds for dismissal are sufficient, or where the employer can themselves be held partly responsible for the dispute arising.
Arrange a no-obligation chat and discover how we can help you.
Plan a conversationIn such cases, the employer has an interest in avoiding proceedings before the cantonal court. This gives you room to negotiate a higher payment or better terms. You can read more about your rights and approach during a dispute on the page Settlement agreement during a dispute: your rights and approach.
Common mistakes when negotiating
Many employees unwittingly leave money or rights on the table. Watch out for these pitfalls:
- Signing too quickly out of fear or uncertainty
- Paying no attention to the unemployment-benefit-safe wording of the reason for termination
- Forgetting to negotiate the notice period as a notional period for unemployment benefit purposes
- Agreeing without arranging the reference letter or release from duties
- Not seeking legal advice, when this is relatively inexpensive
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we understand how negotiations over a settlement agreement work in practice. We take a clear-headed look at your situation, explain what is achievable, and support you throughout the process with your employer. This way, you enter the negotiation well prepared and do not miss anything that matters to you.
Would you like to know whether you can get more out of the settlement agreement you have been offered? Please feel free to contact us without obligation. We are happy to think things through with you, even if you simply want to talk through your options.
Frequently asked questions
Am I allowed to refuse a settlement agreement?
Yes, you are never obliged to sign a settlement agreement. Refusal means the employer must pursue an alternative route to dismissal, such as through the cantonal court or the UWV. It is advisable to seek legal advice first about what refusing means for you.
You have a period of 14 days after signing a settlement agreement to reconsider your decision.
After signing, you have fourteen days in which to dissolve the settlement agreement without giving any reason. This is established by law and always applies, even if it is not mentioned in the agreement itself.
Does my employer need a reason to propose a settlement agreement?
An employer does not need to prove a formal ground for dismissal in the case of a settlement agreement, as it concerns mutual consent. Nevertheless, the underlying reason is relevant to your negotiating position and to the subsequent assessment of your unemployment benefit entitlement.
What if the employer says the offer is non-negotiable?
This is almost always a negotiating tactic. In practice, there is nearly always room for adjustment, particularly if you make a well-reasoned case for why your counter-proposal is reasonable. An employment lawyer can help you with this.
We're happy to help you brainstorm ideas. For advice tailored to your specific situation, we'd be happy to sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.
