Have you received a settlement agreement and are not quite sure what to do with it? Have the VSO reviewed before you put your signature to it. A lawyer looks not only at the figure, but at the full legal content — and that is precisely where the pitfalls lie that you won’t spot at first glance.
Why having a VSO reviewed matters so much
A settlement agreement looks straightforward on the face of it: an end date, a payment and a few standard clauses. Yet the legal risk rarely lies in the tone of the document, but in the details. Small differences in wording can have major consequences for your unemployment benefit entitlements, the start date of your benefit, or claims you unknowingly sign away.
Employers generally draw up a VSO in their own interest. That does not necessarily mean bad faith, but it does mean the wording is rarely optimally tailored to your specific situation, your contract, your collective agreement or any bonus arrangements. An employment lawyer reads such a document with different eyes and identifies where the agreement falls short or where there is room to negotiate.
What a lawyer actually assesses
A thorough review of your settlement agreement covers several elements. It involves far more than just the amount of the statutory redundancy payment. A lawyer will look at, among other things:
- Unemployment benefit safety: does it clearly state that the initiative to terminate the employment came from the employer, and is there any suggestion of culpable unemployment absent?
- Notice period: has the end date been correctly calculated on the basis of your statutory or contractual notice period?
- Full and final settlement: does that clause go further than is desirable, causing you to lose entitlements to outstanding bonuses, holiday days or expense reimbursements?
- Restrictive covenants: does a non-compete clause, non-solicitation clause or confidentiality clause remain in force unchanged after the end of employment?
- Level of compensation: is it reasonable in relation to the statutory redundancy payment and the redundancy situation?
- Contribution to legal costs: many VSOs offer scope to include a contribution towards your advisory costs.
Well-drafted documents can sometimes give a false sense of reassurance, whilst significant risks for you as an employee remain very much in place.
The statutory cooling-off period and what it means for you
Under Article 7:670b of the Dutch Civil Code, you have a statutory cooling-off period of fourteen days after concluding a settlement agreement. Within that period you may dissolve the agreement in writing without giving any reason. If your employer does not mention this right in the VSO itself, the period is automatically extended to twenty-one days.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekPlease note: the cooling-off period is a safety net, not a substitute for a thorough review beforehand. Before signing, you have the greatest room to negotiate. After that, the conversation quickly shifts from improving to correcting, which is considerably more difficult. Do not use the cooling-off period as an excuse to sign too hastily — make sure you have the VSO assessed as soon as you receive the draft.
Common mistakes when signing a VSO
In practice, things regularly go wrong on a number of familiar points. Time pressure from the employer plays a significant role: someone who reacts emotionally to the news of redundancy is inclined to sign more quickly than is wise. Watch out for the following pitfalls:
- Looking only at the gross figure and skipping over the unemployment benefit wording
- Agreeing to a full and final settlement without checking whether outstanding bonuses or holiday days have been excluded
- Accepting an end date that is too early and does not align with the applicable notice period
- Forgetting that restrictive covenants such as a non-compete or non-solicitation clause continue to apply after dismissal if they are not amended
- Assuming that a neatly drafted document is also legally correct
Only once you know what to look for can you judge whether a proposal is fair — or whether there is more to be had than the employer initially offers.
When is having a VSO reviewed particularly urgent
In certain situations it is even more important not to simply sign. Are you ill at the time you receive a VSO? If so, you risk losing your protection against dismissal and your entitlement to continued pay if you agree without taking legal advice. A careful review is equally indispensable when you are pregnant, have an ongoing bonus entitlement, a company car or special terms and conditions of employment. The Settlement agreement page provides a helpful overview of the general rules that apply.
Why Arbeidsjurist Eindhoven
At Arbeidsjurist Eindhoven we help employees in Eindhoven and the Brabant region to assess and negotiate a settlement agreement. We look not only at the figure, but at the full legal structure of the arrangement — from unemployment benefit safety to full and final settlement. That way you know exactly where you stand before you sign, and where there is still room to negotiate better terms.
Have you received a VSO and would you like to know whether it is in order? Get in touch without obligation. We will discuss your situation personally and give you clear advice tailored to what is at stake in your particular case.
Frequently asked questions
Why should I have my settlement agreement reviewed?
A VSO may look straightforward, but small errors in the wording can have serious consequences — for your unemployment benefit entitlements, the end date, outstanding claims and restrictive covenants that continue to apply after your dismissal. An employment lawyer assesses not only the compensation, but the full legal content of the agreement.
How long is my cooling-off period after signing a settlement agreement?
Under Article 7:670b of the Dutch Civil Code, you have a fourteen-day cooling-off period after concluding a settlement agreement. If this right is not mentioned in the VSO itself, the period is automatically extended to twenty-one days. Within that period you may dissolve the agreement in writing without giving any reason.
Can I still negotiate once I have received a draft VSO?
Yes, absolutely. As long as you have not yet signed the VSO, there is in most cases room to negotiate on the compensation, the end date, restrictive covenants and other terms. After signing, that becomes considerably more difficult. Have the VSO reviewed as quickly as possible once you receive the draft.
What happens if I sign a VSO whilst I am off sick?
Special rules apply in cases of illness. During the first two years of sickness you have protection against dismissal and are not obliged to cooperate with a VSO. If you sign anyway, the UWV may take the view that you voluntarily participated in your own dismissal, which puts your unemployment benefit entitlement at risk. In such a situation, taking legal advice beforehand is essential.
How much does it cost to have a VSO reviewed by Arbeidsjurist Eindhoven?
Please get in touch without obligation for more information about the options and fees. In many cases the VSO already provides scope to include a contribution towards legal advisory costs, or this can be incorporated into the negotiation with the employer.
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.
