You have received a termination agreement from your employer and are not quite sure what to do with it. That is entirely understandable: such a document sets out the definitive terms of your departure and has significant consequences for your finances, your entitlement to unemployment benefit, and your future. Instructing a solicitor is therefore not a luxury but a shrewd move that will often gain you more than it costs.
What exactly is a termination agreement
A termination agreement is the written record of the arrangements you and your employer make to end the employment relationship by mutual consent. In practice, the terms termination agreement and settlement agreement are used interchangeably; in the context of dismissal they generally mean the same thing.
Such an agreement typically covers the end date, the redundancy payment, the notice period, release from work duties, outstanding annual leave, and any post-termination clauses such as a non-compete or confidentiality provision. Because you only make these arrangements once, it is crucial that everything is in order before you put your signature to it.
Why you should not simply sign
An employer who puts forward a termination agreement has usually done their homework. The agreement has been drafted in their interest, not necessarily in yours. If you sign without having it checked, you risk unwittingly waiving rights to which you were perfectly entitled.
Think of an inadequate redundancy payment, a notional notice period that is too short causing your unemployment benefit to start later than necessary, or a full and final settlement clause that goes further than is reasonable. Small details in the wording can have significant financial consequences further down the line.
What a solicitor does for you
An employment law solicitor reads the agreement with a critical eye and translates legal language into plain English. In concrete terms, a solicitor will look at, among other things:
- The level of the redundancy payment. Is it in line with the market? The statutory redundancy payment in 2026 amounts to a maximum of €102,000 gross. With a settlement agreement this cap does not apply and there is often more to be gained.
- Protection of your unemployment benefit entitlement. Does the agreement state that the initiative lay with the employer, that there is no urgent reason for dismissal, and that the correct notice period is being observed? If any one of those elements is missing, your unemployment benefit claim could be rejected.
- Post-termination clauses. A non-compete or non-solicitation clause that remains in place can hinder your search for a new position. A solicitor will negotiate for its removal or restriction.
- Annual leave and bonuses. Outstanding leave entitlement and any bonus claims must be correctly accounted for or paid out.
- The cooling-off period. After signing, you have a statutory fourteen days in which to revoke the agreement in writing, without needing to give a reason. A solicitor will draw your attention to this and keep track of the deadline.
In addition to reviewing the agreement, a solicitor will also negotiate on your behalf. In many cases employers are willing to move on the payment, the end date, or other terms, particularly when they know you have sound legal representation.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekWho pays the legal costs
A common misconception is that legal assistance is always expensive and entirely at your own expense. In practice, many employers include a contribution towards legal advice in the agreement, or are willing to do so if you ask. If no such provision is included, ask for it explicitly. An employer who wants you to sign with full knowledge of what you are agreeing to will understand that this forms part of a proper process. If you have legal expenses insurance or are a trade union member, check whether cover is provided; if not, a solicitor can give you a clear picture of what their assistance will cost and what you stand to gain.
Practical tips when you receive a termination agreement
- Never sign under time pressure. Your employer may ask for a prompt response, but you are entitled to a reasonable period in which to take advice.
- Read the agreement carefully and note down your questions before speaking to a solicitor, so that the conversation is as productive as possible.
- Ask in writing for a contribution towards legal advice if one is not already included.
- Check that the initiative for the dismissal is clearly attributed to the employer; this is essential for your unemployment benefit entitlement.
- Pay attention to the notional notice period: this determines when your unemployment benefit commences, not the end date stated in the agreement.
- Check whether there is outstanding annual leave, bonuses, or other entitlements that need to be included in the agreement.
- Do not delay in instructing a solicitor; the earlier you seek advice, the more room there generally is to negotiate.
Why Arbeidsjurist Eindhoven
At Arbeidsjurist Eindhoven we understand how the labour market in Brabant works and what is driving employers in the region. We take the time to understand your situation thoroughly, review your termination agreement on every relevant point, and explore whether there is scope for improved terms. That way you never have to face your employer alone.
Would you like to find out what we can do for you? Contact us for a no-obligation conversation. An initial discussion carries no commitment but can give you a great deal of clarity.
Frequently asked questions
Do I need to instruct a solicitor when I receive a termination agreement?
You are not legally required to do so, but it is strongly advisable. A solicitor checks whether the agreement has been drawn up correctly, whether your unemployment benefit entitlement is protected, and whether the redundancy payment is reasonable. Errors or missing clauses can prove costly at a later stage.
How long do I have to change my mind after signing a termination agreement?
Under statute, you have fourteen days from the date of signing to revoke your agreement in writing, without needing to give a reason. If you signed under pressure or without having taken advice, it is worth knowing that this period exists.
What is the difference between a termination agreement and a settlement agreement?
In dismissal practice the two terms are used interchangeably and mean the same thing: a written agreement by which employer and employee end the employment relationship by mutual consent. In theory a settlement agreement can also be used to resolve other disputes, but in the context of dismissal the distinction is not legally relevant.
Can I negotiate the terms of a termination agreement?
Yes, absolutely. You are under no obligation to accept your employer's first proposal. You can negotiate on the level of the redundancy payment, the end date, release from work duties, the removal of a non-compete clause, and other terms. A solicitor can assess what is realistically achievable and conduct the discussions on your behalf.
Will my employer pay the costs of legal advice in connection with a termination agreement?
An employer is not legally obliged to do so, but in practice many employers include a contribution towards legal advice in the agreement or are willing to do so if you ask. It is therefore well worth asking explicitly, with the assistance of a solicitor if necessary.
We are happy to think along with you. For advice tailored to your situation we would gladly sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.
