How to complete a template settlement agreement in Eindhoven correctly.

Completing a model settlement agreement

Filling in a template settlement agreement may seem straightforward, but the content determines whether you will retain your entitlement to unemployment benefit (WW) and whether you have negotiated the best possible leaving arrangements. Particularly in Eindhoven and the Brabant region, a correctly completed document is only the beginning — the conditions it contains are just as important as the signature beneath it.

What is a model settlement agreement

A settlement agreement (VSO) is the written record that you and your employer are terminating the employment contract by mutual consent. Because this is dismissal by mutual consent, the employer does not need to seek permission from UWV or the subdistrict court. All arrangements — from the end date to the payment — are recorded in writing by both parties together.

The statutory basis is found in Articles 7:900 to 7:906 of the Dutch Civil Code (the general rules for settlement agreements) and in Article 7:670b of the Dutch Civil Code, which applies specifically to the termination of an employment contract. The latter article requires the written form: a verbal agreement is not legally valid in this context.

Mandatory provisions that must not be missing

A template is a starting point, not an end point. Before you fill in or sign anything, it is important to know what information must in any case be present. In broad terms, this concerns:

• Naam en adresgegevens of both parties (employer and employee)
• End date of the employment, taking into account the applicable notice period — this is how you retain entitlement to a consecutive unemployment benefit (WW)
• The grounds for dismissal and the statement that the initiative lies with the employer; this is essential for UWV's assessment of your WW entitlement
• Confirmation that no urgent reason underlies the departure
• De beëindigingsvergoeding, generally based on the statutory transition payment, but with scope to negotiate more
• Final settlement: outstanding salary, holiday pay and holiday days
• Release from duties and, where applicable, arrangements regarding the non-competition clause
• Final discharge: the confirmation that, once all obligations have been fulfilled, the parties have no further claims against each other
• De wettelijke bedenktijd of 14 days, which is explained in more detail below

Make sure the settlement agreement also makes it sufficiently clear to the UWV that you did not leave voluntarily and that there is no question of culpable conduct. When assessing a claim for unemployment benefit (WW), the UWV always scrutinises the agreement critically on precisely these points.

The statutory reflection period explained

As soon as you sign, the reflection period begins immediately. Under Article 7:670b(2) of the Dutch Civil Code, you as an employee have the right to dissolve the settlement agreement in writing within 14 calendar days of it being concluded — without giving any reason. If you dissolve it in time, the employment contract revives as if no settlement agreement had ever been concluded.

If the reflection period is not included in the agreement, the period is automatically extended by law to 21 days. The employer is obliged to inform you explicitly of this right; if they fail to do so, you automatically benefit from that extra week. Bear in mind also that you may only invoke this right once every six months.

Make smart use of the reflection period:

• Have the agreement reviewed by an employment lawyer before the period expires
• Check whether the notice period has been calculated correctly (a period that is too short will result in a waiting period for unemployment benefit (WW))
• Verify whether the non-competition clause has been addressed and whether the transition payment is correct
• Check whether the ground for dismissal has been formulated in a WW-friendly way
• Always send a notice of dissolution in writing and by registered post

Pitfalls when completing a model agreement

Online templates are a useful starting point, but they are by definition generic. What a standard settlement agreement contains is not always what you need. Common mistakes include:

• An end date that does not align with the statutory notice period, causing unemployment benefit (WW) to commence later than it should
• An unduly low payment, because the transition payment has not been correctly calculated for your specific situation (part-time work, irregular-hours allowance, variable remuneration)
• No release from the non-compete clause, or one that is too vaguely worded
• Absence of any arrangements regarding an outplacement allowance or study costs
• No mention of the cooling-off period, which may give rise to disputes about the validity of the agreement

Furthermore: an agreement reached via WhatsApp or e-mail does not, in principle, constitute a legally valid settlement agreement — the signed, written version is the determining document.

Negotiating over the content is worthwhile

A template settlement agreement is not a diktat. The employer and employee are free to negotiate every aspect of it. Whereas in dismissal proceedings through UWV or the subdistrict court the payment is fixed by law, a settlement agreement allows room for a tailored arrangement. Think of a higher severance payment, an outplacement budget, a favourable end date, or the removal of a non-compete clause.

In practice, it regularly becomes clear that negotiating genuinely pays off. Those who sign without taking advice sometimes leave a considerable advantage on the table — not necessarily because the employer has acted in bad faith, but simply because standard templates are not tailored to everyone's individual circumstances. You can read more about your rights in relation to this type of agreement on the page settlement agreement.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we help you not only to complete a template settlement agreement correctly, but also to assess whether its contents have truly been arranged in your favour. We examine the notice period, the payment, the non-compete clause, and whether the wording is favourable for your unemployment benefit (WW) entitlement — so that you know exactly where you stand before you sign.

Do you live or work in Eindhoven or the Brabant region and have you received a draft settlement agreement? Get in touch without any obligation. An initial conversation is always free of commitment.

Frequently asked questions

What must a template settlement agreement contain as a minimum?

A valid settlement agreement must in any event include the names and addresses of both parties, the end date of the employment (including the correct notice period), the ground for dismissal stating that the initiative lies with the employer, the termination payment, the final settlement (salary, holiday pay, and remaining holiday entitlement), a full and final discharge clause, and the statutory 14-day cooling-off period. If the cooling-off period is not mentioned, it is automatically extended to 21 days.

How long do I have to reconsider after signing a settlement agreement?

Under Article 7:670b(2) of the Dutch Civil Code, as an employee you have 14 calendar days' cooling-off time after the settlement agreement has been concluded. If the employer has not included the cooling-off period in the agreement, the period is automatically 21 days. Within that period you may dissolve the agreement in writing without giving reasons. This right may be invoked once every six months.

Can I simply use an online template settlement agreement?

An online template is a useful starting point, but it is no guarantee of a legally correct and complete agreement. Standard templates do not take account of your specific situation: the level of your variable pay, a part-time contract, an existing non-competition clause, or deviating collective labour agreement arrangements. Always have the template adapted and reviewed by an employment lawyer before you sign.

Will I lose my right to unemployment benefit (WW) if I sign a settlement agreement?

Not automatically, but the wording of the settlement agreement is crucial. When assessing a claim for unemployment benefit (WW), the UWV considers whether the initiative lay with the employer, whether the dismissal was not based on an urgent reason, and whether the correct notice period was observed. If the settlement agreement is not drafted correctly on these points, the UWV may refuse unemployment benefit (WW) or impose a waiting period.

Am I allowed to negotiate the content of a model settlement agreement?

Yes, absolutely. A settlement agreement is an agreement between two parties and not a unilateral diktat. You may negotiate the level of the payment, whether or not a non-competition clause is waived, an outplacement budget, release from duties, and other terms. Employer and employee are entirely free to agree on tailor-made arrangements, provided the statutory minimum requirements (such as the transition payment and the unemployment benefit (WW) requirements) are observed.

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.