I'm unable to provide specific legal advice. However, if you believe a settlement agreement transition payment is too low, you may consider the following steps: Review the Settlement Agreement: Carefully re-read the terms of your settlement agreement, paying close attention to any clauses related to transition payments, compensation, or benefits. Seek Legal Advice: Consult with a solicitor or legal professional who specialises in employment law or dispute resolution. They can assess the validity of the agreement and advise you on your legal options. Negotiate: If your solicitor advises that you have grounds, you may be able to enter into negotiations with the other party to reach a revised agreement. Consider Mediation: Mediation is a process where an impartial third party helps you and the other party to reach a mutually acceptable solution. Legal Action: If negotiations and mediation are unsuccessful, your solicitor may advise you on the possibility of taking legal action. You will need to gather all relevant documentation, including the settlement agreement itself, any correspondence related to its negotiation, and evidence that supports your claim that the payment is too low.

Transition payment too low? Here is how to challenge it

Is the transition payment in your settlement agreement too low? Below you can read how to challenge this and obtain a higher amount.

You have received a settlement agreement and your employer's offer does not feel right. The transition payment seems too low, but you are not sure whether that is correct or what you can do about it. Good news: in many cases there is more room than you might think, and particularly with a settlement agreement your position is stronger than in formal dismissal proceedings.

Statutory entitlement to a transition payment under a settlement agreement

In the case of dismissal via the UWV or the subdistrict court, you have a statutory right to a transition payment. With a settlement agreement the legal position is slightly different: you are agreeing to termination by mutual consent, and in doing so the strict statutory right to the payment falls away. Nevertheless, almost every employer offers a transition payment in a settlement agreement as well, simply because otherwise you have no obligation to cooperate. That gives you room to negotiate.

The statutory transition payment amounts in 2026 to one third of a monthly salary per year worked. The statutory maximum has been set at €102,000 gross in 2026, or one gross annual salary if that is higher. This maximum was increased on 1 January 2026 compared with the €98,000 that applied in 2025. Check whether the amount in your settlement agreement is in line with this.

Common errors in the calculation

A transition payment that is too low is by no means always intentional. Employers regularly use an incorrect basis for their calculations, meaning you structurally receive less than you are entitled to. Knowing the most common errors will help you to check more effectively.

• Excluding holiday pay: holiday pay (standard 8% of gross monthly salary) should be included in the calculation base. Many employers leave this out.
• Vaste toeslagen vergeten: structural shift or irregular-hours allowances form part of the monthly salary for the purposes of the calculation.
• Length of service rounded rather than calculated to the exact day: since 2020, the exact duration of employment is calculated to the day, including partial periods.
• 13th month or fixed bonus not included: a structurally paid year-end bonus also counts towards the calculation base.
• Incorrect hourly wage during illness: if you were dismissed following a period of long-term illness, the calculation must be based on your original salary, not the continued-payment sick pay.

When is the offered payment too low

An offer below the statutory transition payment is, in most cases, unreasonable. The reasoning is straightforward: had your employer gone through UWV or the subdistrict court, it would in any event have been liable for the statutory payment. A settlement agreement offer below that level therefore effectively worsens your position.

Moreover, with a settlement agreement there is no need to stop at the statutory transition payment. In negotiations it is possible, for example, to work with the higher, pre-2020 calculation methodology, which in certain situations can result in a considerably higher amount. Other factors such as the strength of your employer's dismissal file, the length of your employment, and the grounds for dismissal also play a role in what you can negotiate.

Your cooling-off period and the right to withdraw

Have you already signed? You then have a statutory two-week period in which to withdraw from the settlement agreement, without needing to give any reason. Do not let yourself be rushed by pressure from your employer. Some employers try to get you to sign quickly, precisely at the moment when you are emotionally affected by the news of your dismissal. That is understandable, but it is exactly the moment when you are inclined to agree too hastily to unfavourable terms.

Use that cooling-off period to have the offer reviewed by an employment lawyer. In many cases, the costs of legal assistance are reimbursed by the employer as part of the agreement to be concluded.

How to challenge it step by step

Do you want to challenge or increase the transition payment in your settlement agreement? Here are the concrete steps:

• Calculate the statutory transition payment yourself, based on your exact length of service and gross monthly salary including holiday allowance and supplements.
• Compare your calculation with the offer in the settlement agreement and establish what the difference is.
• Consult an employment lawyer before responding to your employer — a professional response is more effective than an emotional rebuttal.
• Have the lawyer formulate a counter-proposal, preferably with a substantiated calculation and any arguments based on the grounds for dismissal or the absence of a proper file.
• If you have not yet signed, do not sign under time pressure. Always have the agreement checked first.
• If you have already signed, revoke this in writing within two weeks of signing and seek legal advice immediately.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven, we know the local labour market and understand exactly how negotiations over a settlement agreement work in practice. We assess your settlement agreement calmly and thoroughly: is the calculation correct, are you missing any supplements or holiday allowance, and is there scope for a higher payment? We support you throughout the entire process, from an initial review to targeted negotiation with your employer.

Do you live or work in Eindhoven or the Brabant region and have you received a settlement agreement that you are not comfortable with? Contact us without obligation. We are happy to explore the options with you.

Frequently asked questions

Am I entitled to the statutory transition payment in a settlement agreement?

Strictly speaking, you have no statutory right to a transition payment in a settlement agreement, unlike in the case of dismissal via UWV or the subdistrict court. In practice, almost every employer will nonetheless offer a transition payment, because otherwise you are under no obligation to cooperate with the settlement agreement. This gives you a strong negotiating position.

How do I know whether the transition payment in my settlement agreement has been calculated correctly?

Calculate the amount yourself based on your exact years of service, gross monthly salary including holiday allowance (8%), fixed supplements, and any end-of-year bonus. Compare this with the offer in the agreement. If it does not add up, or if you are uncertain, have the calculation checked by an employment lawyer before you sign.

Can I also negotiate more than the statutory transition payment in a settlement agreement?

Yes, in a settlement agreement the statutory transition payment is the starting point, not the end point. Depending on the strength of your employer's dismissal file, the reason for dismissal and the length of your employment, there may be room for a higher payment. In negotiations, the higher, pre-2020 calculation method is sometimes also used.

What should I do if I have already signed a settlement agreement with a payment that is too low?

You have a statutory period of two weeks to revoke a signed settlement agreement, without needing to give a reason. Do this in writing and immediately engage an employment lawyer to assess what your options are going forward.

Will my employer cover the costs of an employment lawyer for reviewing the settlement agreement?

In many cases, the legal costs of having a settlement agreement reviewed or negotiated are reimbursed by the employer as part of the arrangements to be agreed. This is a point that can be expressly included in the settlement agreement. Always discuss this with your employment lawyer before you sign.

We are happy to think along with you. For advice tailored to your situation, we would be glad to talk. No rights can be derived from the content of this page and it may contain inaccuracies.