A settlement agreement can seem like a quick solution, but could there be a catch? The risk is greater than many people realise. Having your settlement agreement reviewed in Eindhoven by an employment lawyer prevents minor details from having major financial or legal consequences.
Why Having a Settlement Agreement Reviewed Matters So Much
A settlement agreement (VSO) is a binding contract. Once you sign, you agree to all the terms — including clauses you may have overlooked. Employers typically draw up these agreements with legal support. As an employee, you are therefore at a disadvantage if you assess the document without assistance.
Fortunately, once you receive a settlement agreement you are entitled to a standard fourteen-day cooling-off period. This period exists for good reason: use it to have the agreement thoroughly reviewed. An employment lawyer in Eindhoven can quickly and clearly identify where the problem areas lie.
The Five Biggest Pitfalls
1. An Incorrect or Missing Reason for Dismissal
The stated reason for your departure determines whether you will be entitled to unemployment benefit (WW) afterwards. If the agreement states that you resigned voluntarily, or that the dismissal was due to serious misconduct on your part, the UWV may refuse your unemployment benefit claim. Always check that the reason for dismissal is worded neutrally and accurately reflects the true situation.
2. A Transition Payment That Is Too Low or Missing Entirely
If you have been employed for two years or more, you are generally entitled to a statutory transition payment. Nevertheless, settlement agreements regularly appear in which this amount is absent, has been calculated incorrectly, or is described as a ‘payment at the employer’s discretion’. Always have the calculation checked against the statutory formula.
3. An Unclear or Overly Broad Confidentiality Clause
Many settlement agreements include a confidentiality provision. This is not unusual in itself, but pay close attention to exactly what it covers. A clause that is too broadly worded may prevent you from telling your own story later on — including to a prospective new employer or in legal proceedings. Make sure the scope is clear and limited.
4. A Non-Compete Clause That Simply Remains in Force
Does your employment contract contain a non-compete or non-solicitation clause? If so, check whether the settlement agreement explicitly provides for it to lapse. If you fail to negotiate this point, the clause may remain in force after your employment ends. This significantly restricts your freedom in the labour market — particularly in a region like Eindhoven, where certain industries can be relatively small.
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Plan a conversation5. Full and Final Settlement Without Any Reservations
Almost every settlement agreement ends with a phrase along the lines of: ’the parties grant each other full and final discharge from all claims’. This means that once you sign, you can no longer make any further claims. Think of outstanding salary, overtime, unused holiday days, or bonuses that were still owed to you. Make sure all such outstanding matters have been settled or expressly excluded before you sign.
Practical Tips for Reviewing Your Settlement Agreement
- Note the date of receipt: your fourteen-day cooling-off period starts from that moment.
- Make a list of everything that is still outstanding: holiday days, bonuses, a company car, pension commitments.
- Check the end date of the employment: does it correspond with the notice period in your contract?
- Ask for written confirmation of any verbal agreements, such as a positive reference.
- Have the document assessed by an employment lawyer before you respond to your employer.
- Never sign under pressure or in haste: even if an employer is pressing you, you are entitled to those fourteen days.
When Is It Still Possible to Negotiate the Substance?
The good news is that a settlement agreement is a proposal, not a diktat. As long as you have not signed, everything is open for discussion. In practice, employers are often willing to adjust certain clauses, provided you clearly state what you would like changed. An employment lawyer can help you not only to identify problems, but also to raise them in a way that does not unnecessarily escalate the process.
Would you like to know more about the broader context of your rights when dealing with a settlement agreement following a dispute? Then read Settlement Agreement in a Dispute: Your Rights and Approach.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we understand how stressful it is to receive a settlement agreement on your desk. We assess your agreement quickly, clearly, and without legal jargon, so you know exactly where you stand. Whether you have doubts about a single clause or want the entire document reviewed, we are happy to think things through with you.
Get in touch without any obligation and find out what we can do for your situation.
Frequently Asked Questions
How quickly can an employment lawyer review my settlement agreement?
In many cases, an assessment is possible within one to two working days. As you only have fourteen days to reconsider, it is advisable to get in touch as soon as you receive the agreement.
What does it cost to have a settlement agreement reviewed?
Costs vary depending on the firm and the scope of the review. At Arbeidsjurist Eindhoven, we discuss the costs with you in advance so there are never any surprises. Feel free to request a no-obligation quote.
Can I extend my cooling-off period if I need more time?
The statutory cooling-off period of fourteen days is set out in law and begins the day after receipt. You can ask your employer for more time, but they are not obliged to grant it. Act promptly and engage a lawyer without delay.
What if I have already signed but still have doubts?
After signing, you have one opportunity to withdraw from the settlement agreement, provided you do so in writing within fourteen days of signing. Have you already exercised that right of withdrawal previously, or has that period lapsed? If so, the situation becomes more legally complex. In that case, contact us immediately for advice on your specific circumstances.
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.
