Do you want to end your employment, but at the same time protect your entitlement to unemployment benefits? A settlement agreement (VSO) can be a smart route — provided you handle the negotiations properly. In Eindhoven and the Brabant region, an employment lawyer can help you work through this process step by step without taking unnecessary risks.
Why a settlement agreement if you want to leave yourself?
If you resign by giving notice yourself, the UWV (Employee Insurance Agency) will generally consider you to have become unemployed through your own fault. This means you will not be entitled to unemployment benefit. A settlement agreement offers a way out: the employment is terminated by mutual consent, without you formally resigning.
The difference lies in the wording. A settlement agreement typically states that the initiative came from the employer, or that a joint decision was made. This is crucial for the UWV’s assessment. Even so, it is not as straightforward as it sounds — there are conditions the settlement agreement must meet in order for you to retain your entitlement to unemployment benefit.
When is a settlement agreement realistic if you are the one initiating it?
Your employer is not obliged to cooperate with a settlement agreement simply because you want to leave. They will generally only agree if there is something in it for them as well. Consider situations where:
- the working relationship has been strained for some time;
- a reorganisation is taking place in the background;
- you hold a position the employer wishes to reduce or fill differently;
- there is already a disrupted employment relationship in which both parties would rather part ways.
In such cases, you can open a conversation and propose reaching a joint termination. How you approach that conversation will partly determine whether your employer is open to a settlement agreement.
How do you approach the negotiation?
Raising the subject of a desired departure via a settlement agreement requires thorough preparation. You do not want to give the impression that you are so keen to leave that you will accept anything — as that will cost you your negotiating position.
Practical tips for the negotiation
- Wait for the right moment: raise the conversation when there is already a reason to do so, such as a conflict, a reorganisation, or a performance review that did not go well.
- Use neutral language: do not indicate that you have a new job lined up or that you are desperate to leave; keep the reason open or place the emphasis on the shared situation.
- Ask for a neutral reason for dismissal: ensure the settlement agreement states that the initiative lay with the employer, or that there is a business or relational reason.
- Negotiate the compensation: with a settlement agreement you are entitled to at least the statutory transition payment; do not simply accept a lower amount without negotiating.
- Check the notice period: the notional notice period must be correctly included in the settlement agreement; otherwise your unemployment benefit may be delayed.
- Have the text reviewed: never sign a settlement agreement without first having it assessed by an employment lawyer.
What must the settlement agreement contain in order to retain unemployment benefit?
The UWV carefully assesses the settlement agreement before granting unemployment benefit. A few elements are essential in this regard:
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Plan a conversation- The reason for termination must not indicate that you acted in a culpable manner.
- The end date must correspond to the applicable notice period (or be longer).
- There must be no penalty clause suggesting that you fell short in your duties.
- The settlement agreement must have been signed with a cooling-off period of fourteen days.
If any one of these elements is missing, the UWV may refuse or defer your unemployment benefit. An employment lawyer knows exactly what the UWV looks for and will help you optimise the wording before you sign.
Cooling-off period: use it wisely
After signing a settlement agreement, you have fourteen days in which to reconsider your decision. This cooling-off period is a statutory requirement and is also stated in the settlement agreement. Use this period to have the agreement reviewed once more with a critical eye — preferably by an employment lawyer in Eindhoven who is familiar with local practice.
For further background on the consequences of leaving of your own accord for your benefit entitlement and compensation, also read: Requesting redundancy yourself: consequences for unemployment benefit, transition payment, and settlement agreement.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we understand that taking the initiative to leave can be daunting — especially when you are unsure where you stand. We support you in conducting the conversation with your employer, review the settlement agreement on all crucial points, and ensure your interests are properly protected.
Would you like to know what your options are? Feel free to get in touch with no obligation. We will look at your situation together and give you clear advice on the best approach.
Frequently asked questions
Can I request redundancy myself and still retain my entitlement to unemployment benefit?
Yes, this is possible via a settlement agreement. As long as the settlement agreement is drawn up correctly and contains the appropriate reason for dismissal, the UWV can approve your unemployment benefit claim. Always have the agreement reviewed in advance.
Does my employer have to agree to a settlement agreement if I want to leave?
No, an employer is not obliged to cooperate with a settlement agreement. They will generally only do so if they see a benefit in it for themselves. Thorough preparation and the right approach to the conversation are therefore important.
What happens if I sign the settlement agreement without legal advice?
You risk the agreement containing unfavourable clauses, the reason for dismissal being incorrect for the UWV’s purposes, or accepting a compensation amount that is too low. Always have the settlement agreement reviewed before you sign.
How long does the negotiation process for a settlement agreement take?
This varies depending on the situation. Sometimes agreement is reached within a week, but in more complex cases it can take several weeks. An employment lawyer can help to speed up and structure the process.
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.
