Having a termination agreement reviewed in Eindhoven is a sensible step before you put pen to paper. The terms set out in it determine not only when your employment ends, but also whether you retain your entitlement to unemployment benefit, what redundancy payment you receive and what obligations you carry into your next job. Don’t be caught out by minor wording with major consequences.
What exactly is a termination agreement
A termination agreement and a settlement agreement (VSO) are, in practice, the same document. It is a written agreement by which you and your employer jointly decide to end the employment relationship, without the involvement of the UWV (Employee Insurance Agency) or the cantonal court. Because you as the employee are consenting voluntarily, it is all the more important that everything is recorded correctly and in full from a legal perspective.
The agreement typically sets out terms regarding the end date, the redundancy payment, the notice period, any release from work duties, payment of holiday entitlement and the reason for dismissal. That reason is not a minor detail: incorrect wording can directly result in the UWV refusing your unemployment benefit claim.
Why having it reviewed matters so much
Many employees assume they can simply read through a settlement agreement and sign it once the payment looks right. But a legal adviser looks beyond the monetary amount. The wording of the reason for dismissal, the calculation of the notional notice period and the inclusion of the statutory cooling-off period are each factors that determine your legal position after dismissal.
For instance, the agreement must clearly state that the initiative for the dismissal lies with the employer. If it says something different, or this information is absent, the UWV may conclude that you resigned of your own accord and you could lose your entitlement to unemployment benefit as a result. The notice period is equally critical: you are only entitled to unemployment benefit once the statutory notice period has elapsed, and that period must be correctly reflected in the settlement agreement.
The statutory cooling-off period after signing
Have you already signed but are having second thoughts? There is good news. Under Article 7:670b(2) of the Dutch Civil Code, as an employee you have fourteen days after concluding a settlement agreement to dissolve it in writing without giving any reason. You do not need to provide a reason; a written notification to your employer is sufficient.
If your employer has not included this right in the settlement agreement, the cooling-off period is automatically extended to three weeks. Please note that you may only exercise this right of withdrawal once in any six-month period. If you use the cooling-off period, your employment contract simply remains in force.
What a legal adviser checks in your settlement agreement
An employment law adviser who reviews your termination agreement in Eindhoven assesses far more than just the payment. These are the key points to consider:
- Reason for dismissal and who initiated it: does it state that the dismissal is at the employer’s initiative and that there is no question of culpable conduct?
- Notice period: has the correct statutory or contractual notice period been observed, so that your unemployment benefit commences at the right time?
- Redundancy payment: is the offered payment reasonable in relation to your years of service, salary and the circumstances?
- Holiday entitlement and final settlement: are outstanding holiday hours and other accrued entitlements being paid out in full?
- Release from work duties: if you are released from work, does the agreement also state that your salary will continue to be paid and that holiday entitlement will not lapse?
- Non-compete or non-solicitation clause: do these clauses remain in effect after the end of your employment, or have they been removed in the settlement agreement?
- Full and final settlement: do you understand exactly what you are granting a release for, and are any exceptions included?
- Cooling-off period: is the statutory fourteen-day cooling-off period explicitly stated in the agreement?
Room to negotiate
Your employer’s first proposal is rarely the final one. In most cases there is room to negotiate on the level of the payment, the end date, the duration of a non-compete clause or a contribution towards legal costs. Many settlement agreements already include a budget for legal assistance; if it is not included, a legal adviser can request such a contribution on your behalf.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekDo not let yourself be pressured by a tight deadline set by your employer. In practice, one to two weeks is considered a reasonable response period for a draft settlement agreement. Time pressure is sometimes a deliberate negotiating tactic, but you have the right to take proper advice before making a decision.
How to proceed when you receive a settlement agreement
Not sure where to start? This step-by-step guide will help you on your way:
- Read through the agreement, but do not sign anything yet.
- Note the date of receipt and any deadline mentioned by your employer.
- Engage an employment law adviser as soon as possible for a legal review.
- Ask whether a budget for legal assistance is available or can be included in the settlement agreement.
- Discuss with your adviser whether the terms are reasonable and what could be improved.
- Have you already signed but are having doubts? Then make use of the statutory fourteen-day cooling-off period.
More general information about your rights in the event of dismissal by mutual consent can be found on the page about the Settlement Agreement.
Why Arbeidsjurist Eindhoven
At Arbeidsjurist Eindhoven, we understand how uncertain and overwhelming it feels to suddenly find a termination agreement on your desk. We help employees in Eindhoven and the Brabant region with a clear, personal assessment of their settlement agreement: what does it say, what is missing and what can you arrange on better terms? That way you go to the negotiating table well informed, rather than regretting what you signed after the event.
Would you like your termination agreement reviewed? Contact us without obligation. We would be happy to look at your situation together with you.
Frequently asked questions
What is the difference between a termination agreement and a settlement agreement?
There is no legal difference: both terms refer to the same document. It is a written agreement by which the employer and employee bring the employment relationship to an end by mutual consent, without the involvement of the UWV or the cantonal court.
How long do I have to have a settlement agreement reviewed?
There is no statutory deadline for having it reviewed before signing, but in practice one to two weeks is considered a reasonable period in which to respond to a draft agreement. If you have already signed, you have fourteen days under Article 7:670b(2) of the Dutch Civil Code to dissolve the agreement in writing without giving any reason. If the cooling-off period is not mentioned in the settlement agreement, a period of three weeks applies automatically.
Will I lose my unemployment benefit if I sign a settlement agreement?
Not automatically. In most cases you retain your entitlement to unemployment benefit, provided the settlement agreement is drafted correctly from a legal standpoint. It must state that the dismissal is at the employer's initiative, that there is no question of culpable conduct and that the correct notice period has been observed. Incorrect wording may lead to the UWV rejecting your claim.
Can I negotiate the terms of a termination agreement?
Yes, absolutely. An employer's first proposal is almost always a starting point, not a final offer. You can negotiate on the level of the payment, the end date, the duration of a non-compete clause and a contribution towards legal costs. An employment law adviser can support you in this and conduct the negotiations on your behalf.
What happens if I dissolve the settlement agreement within the cooling-off period?
If you notify your employer in writing within the statutory cooling-off period of fourteen (or twenty-one) days that you are dissolving the agreement, the settlement agreement lapses and your employment contract simply remains in force. Your employer may then initiate fresh negotiations or commence dismissal proceedings via the UWV or the cantonal court.
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.
