Your employer presents you with a settlement agreement, but the terms are not what you had expected. Know this: you are never obliged to sign, and refusing is far from the end of the conversation. In fact, by deliberately refusing or pausing, you often improve your position at the negotiating table.
You may always refuse
A settlement agreement (VSO) is a bilateral agreement that only comes into effect if both parties consent. Your employer can never force you to sign one. If you refuse, your employment contract simply continues as though no proposal had ever been put on the table. Your employer must then initiate a formal dismissal procedure through the UWV or the cantonal court and demonstrate a valid ground for dismissal. For many employers, this is a time-consuming and uncertain process, which actually strengthens your position.
Is your employer pressuring you to sign quickly? That is a signal to be especially alert. In practice, one to two weeks is a reasonable period in which to review the proposal and obtain legal advice. Do not be rushed by artificial deadlines.
Refusing as a starting point for negotiation
A first settlement agreement is rarely a definitive offer. When making an initial proposal, employers deliberately put forward a package that falls below the statutory minimum, as an opening move in the negotiation. By not agreeing immediately, you give yourself the space to explore what is actually possible. In practice, refused settlement agreements regularly lead to renegotiation and better terms.
Virtually all elements of a settlement agreement are open to discussion, as long as you and your employer are willing to continue the conversation. Consider:
- The level of the severance payment (at minimum the statutory transition payment)
- The end date and the length of the notice period
- Release from work duties with full pay
- The removal or restriction of a non-compete clause
- The wording of the reference letter and the final settlement
- Reimbursement of legal advisory costs
As long as the conversation remains open, you have more room for manoeuvre than you might think. Once a formal procedure is under way, that room largely disappears.
What happens if you refuse
If you do not sign the settlement agreement, nothing changes at that point with regard to your employment law position. You retain your job, your salary, and all associated terms and conditions of employment. Your employer then has two options: make a new, improved proposal, or initiate a dismissal procedure. That second route is considerably more difficult and uncertain for them, precisely because they must demonstrate that a valid ground for dismissal exists.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekAs regards your entitlement to unemployment benefit (WW): if you refuse and your employer proceeds with dismissal through a formal procedure, you retain your right to a WW benefit in principle, provided the dismissal is not attributable to you. If in any doubt, always check whether a potential settlement agreement has also been drafted in a manner that preserves your WW entitlement.
If you have already signed, you still have a cooling-off period
Perhaps you have already signed but are now having second thoughts. There is good news: after signing, you as an employee have a statutory 14-day cooling-off period during which you may withdraw from the agreement without giving any reason. This is laid down in Article 7:670b paragraph 2 of the Dutch Civil Code. You do so by sending a written statement to your employer, after which the settlement agreement is cancelled and your employment contract revives. Is the cooling-off period not mentioned in the settlement agreement itself? In that case, the period is automatically extended to 21 days. Please note: you may only invoke this right once every six months.
Practical tips for your negotiation
- Do not react impulsively. Take your time and have the settlement agreement reviewed before you respond with anything.
- Know your minimum rights. In the event of dismissal at your employer’s initiative, you are in principle entitled to at least the statutory transition payment.
- Put everything in writing. Document any pressure, verbal commitments, and agreements in writing.
- Remain professional. Support your requests with facts and keep calm during the conversation; a professional tone strengthens your credibility.
- Seek help in good time. A legal adviser negotiates on your behalf, keeps emotions out of the equation, and knows exactly which arguments carry weight.
- Know when to agree. Negotiating has a purpose: a fair settlement. Once that is on the table, you can also make a conscious decision to say yes.
Why Arbeidsjurist Eindhoven
At Arbeidsjurist Eindhoven, we understand that receiving a settlement agreement proposal can feel daunting and overwhelming, particularly if you are not entirely sure of your rights. We guide you step by step: from reviewing the initial draft to conducting the negotiations with your employer. That way, you never agree to less than you are entitled to. Would you like to know where you stand? Read more about the Settlement Agreement or contact us without obligation. We are happy to think things through with you, including if your situation is in Eindhoven or the Brabant region.
Frequently asked questions
May I refuse a settlement agreement without consequences for my job?
Yes. A settlement agreement is a voluntary agreement; your employer can never force you to sign one. If you refuse, your employment contract simply continues. Your employer must then initiate a formal dismissal procedure through the UWV or the cantonal court and demonstrate a valid ground for dismissal.
Does my negotiating position improve if I first refuse the settlement agreement?
In many cases, yes. A first settlement agreement proposal is rarely the maximum offer. By not agreeing immediately and making your counterproposals known, room opens up for a better severance payment, a more favourable departure date, adjustments to clauses, or reimbursement of legal costs.
What can I negotiate in a settlement agreement?
Virtually all elements are open to discussion, such as the level of the severance payment (at minimum the statutory transition payment), the end date, release from work duties with full pay, the removal of a non-compete clause, and the wording of the reference letter.
After signing, do I still have the option to reconsider my decision?
Yes. Under Article 7:670b paragraph 2 of the Dutch Civil Code, as an employee you have a statutory 14-day cooling-off period after signing, during which you may withdraw from the settlement agreement in writing without giving any reason. If the cooling-off period is not stated in the settlement agreement, a period of 21 days applies. You may make use of this right once every six months.
Do I lose my entitlement to unemployment benefit if I refuse the settlement agreement?
No, refusing in itself does not affect your entitlement to unemployment benefit (WW). If your employer subsequently proceeds with dismissal through the UWV or the cantonal court and you are dismissed, you retain your right to WW benefit in principle, provided the dismissal is not attributable to you. If in any doubt, always check whether a potential settlement agreement has also been drafted in a way that preserves your WW entitlement.
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.
