When you receive a settlement agreement, your mind often leaps straight to the redundancy payment or the end date of your employment. But a strong reference letter is just as important: it can quite literally make the difference when applying for your next role. Knowing your rights and how to use them effectively during negotiations is therefore not a luxury.
Statutory right to a reference letter
Article 7:656 of the Dutch Civil Code governs your right to a reference letter. Under this article, your employer is obliged to provide a reference letter upon the termination of your employment contract, as soon as you request one. This applies regardless of the reason for your departure: including dismissal by mutual consent via a Settlement agreement.
It is important to note that your employer is not required to offer a reference letter of their own accord. You must actively request it, preferably in writing. If you fail to do so, you may forfeit this right.
Also bear in mind: the statutory protections surrounding the reference letter cannot be waived to your detriment as an employee. Any contractual clause stating that you have no entitlement to a reference letter therefore has no legal force.
What it must contain
The law prescribes the minimum information a reference letter must include. This covers at least the nature of your duties, your contracted hours per day or week, and the start and end dates of your employment.
In addition, you may choose whether to have the following elements included:
- Your performance;
- The manner in which the employment contract was terminated;
- If the employer gave notice: the reason for it.
These last three elements are only included at your request. This gives you control: if you would rather the reason for dismissal not appear in the letter, you simply do not need to ask for it.
Reference letter: neutral or positive
Legally, your employer is only obliged to produce a neutral reference letter. This means a factual account of your employment, without any positive or negative assessment of your performance. In practice, such a document often falls short: it says little about how you performed, and prospective employers may take that as a signal.
A positive reference letter does include a substantive assessment of your commitment and qualities. Case law indicates that a reference letter is not considered positive if it merely lists the facts about working hours and duties without saying anything about how you carried out your work. Simply thanking you for services rendered is therefore not sufficient.
The law does not require your employer to be positive, but this is where the power of the settlement agreement comes in: you can make concrete arrangements about this during negotiations.
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Plan a conversationArranging your reference letter in the settlement agreement
The settlement agreement is the ideal moment to set out clear terms regarding your reference letter. What has been promised verbally is difficult to prove after the fact. Always put it in writing.
Practical tips for arranging your reference letter in the settlement agreement:
- Could I have a draft text in advance, please? – have the content reviewed before signing the settlement agreement, so you know exactly what you are getting;
- Secure the positive wording contractually – where possible, refer to an attached draft text as an appendix to the settlement agreement;
- Agree on who signs it – a reference letter signed by your direct line manager carries more weight than a generic statement from HR;
- Make arrangements regarding references too – in addition to the reference letter, you can stipulate that your employer will only provide positive verbal references;
- Set a deadline – agree on a specific timeframe within which you will receive the reference letter after the end of your employment.
If you leave these arrangements until after signing, you will often find in practice that your employer’s sense of urgency quickly diminishes.
If your employer refuses or falls short
If your employer refuses to provide a reference letter, deliberately includes incorrect information, or embeds hidden negative signals in the text, they are liable for any damage you suffer as a result. This is enshrined in Article 7:656 of the Dutch Civil Code. The same applies if the wording contains veiled signals that create a negative impression without being explicitly stated.
If you have any doubts regarding the content of a reference letter you have received, or if you wish to ensure that the arrangements within your settlement agreement are legally sound, it is advisable to have these assessed by an employment law specialist.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we help you look beyond the financial aspects of a settlement agreement to all the practical conditions that matter for your future employment prospects. A strong reference letter is simply part of that. We have thorough knowledge of the local labour market in Eindhoven and the surrounding region, and we understand what matters to employers in Brabant.
Would you like to find out if your reference letter meets the required standard, or do you need help negotiating your settlement agreement? Get in touch for a no-obligation consultation. We'd be happy to look into it with you.
Frequently asked questions
Am I automatically entitled to a positive reference letter with a settlement agreement?
No, the law only obliges your employer to provide a neutral reference upon your request. To obtain a positive reference, you must explicitly negotiate for it and have it recorded in writing within the settlement agreement itself.
What must a reference letter contain by law?
Under Article 7:656 of the Dutch Civil Code, the reference letter must, at a minimum, include the nature of your duties, your contracted hours, and the start and end dates of your employment. Information about your performance and the reason for your departure is only included at your request.
What if my employer refuses to provide a reference letter?
If your employer refuses, includes incorrect information, or deliberately embeds hidden negative signals in the text, they are legally liable for any damage you suffer as a result. In such cases, you may wish to consider taking legal action.
Can I review the content of my reference letter in advance?
Yes, and this is strongly advisable. Request a draft text before signing the settlement agreement. This allows you to propose amendments and avoid any unpleasant surprises afterwards. Ideally, have the agreed text attached as an appendix to the settlement agreement.
Yes, your employer can include the reason for your dismissal in a reference letter.
Only if you request it yourself. You have the choice of whether or not to have the reason for your departure included. Consider carefully whether this is advantageous in your particular situation before making such a request.
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.
