You receive a settlement agreement and notice a redundancy payment listed within it. But is that really the maximum you can obtain? No, because The statutory redundancy pay is a minimum, not a ceiling. In many situations you can successfully negotiate a higher payment – particularly if you know which arguments strengthen your position.
The redundancy payment as a starting point, not an endpoint
The redundancy payment is laid down in statute under Article 7:673 of the Dutch Civil Code and amounts to one third of a monthly salary per full year of service. In 2026, the maximum statutory redundancy payment has been set at €102,000 gross, or one gross annual salary if your annual salary exceeds that amount. This is the sum your employer is obliged to pay. At the very least upon dismissal at their initiative. The law does not, however, prevent employers from paying More – and that is precisely the room you can exploit during negotiations.
Many dismissals are settled by means of a settlement agreement (vaststellingsovereenkomst, or VSO). The first offer your employer makes is rarely their best. Employers typically draft a VSO in their favour. You have every right to make counter-offers and to request a higher payment – and in most cases employers fully expect you to do so.
When is negotiating a higher payment likely to succeed
Not all situations are equally conducive to securing a payment above the statutory minimum. The stronger your legal standing, the higher the probability of a favourable outcome. In practice, the following circumstances bolster your position:
- Long service years of loyalty and accumulated knowledge justify additional recognition.
- Weak dismissal file: If your employer has not built a watertight case — think of a performance improvement process without a formal improvement plan, or a breakdown in the working relationship without any attempt at mediation — their legal position is weaker.
- A difficult position in the labour market older age, a specialist field, or a tight regional labour market (certain sectors in the Brainport region around Eindhoven are also unbalanced) are recognised negotiating points.
- The employer is in a hurry: During a restructuring, or when a department needs to be wound down swiftly, an employer will want to move quickly – and that gives you room to manoeuvre.
- Employer's culpable conduct: In cases of serious culpable behaviour, the district court may award a fair compensation (billijke vergoeding) on top of the statutory redundancy payment. This fair compensation has no statutory maximum and can serve as leverage during negotiations.
- Personal circumstances: Your family situation, an outstanding mortgage, or high retraining costs can all be put forward as arguments for a higher payment.
Smart negotiating tactics in practice
Effective negotiation starts before The initial meeting. Anyone who goes to the table unprepared leaves money on the table. Bear the following in mind:
- Let the employer make the first offer. If you make a proposal yourself first, you weaken your negotiating position. Wait for the offer, and always ask for it in writing so you can consider it carefully.
- Check the calculation. The gross monthly salary used to calculate the redundancy payment also includes holiday pay, fixed allowances, and a guaranteed thirteenth month's salary. Employers frequently omit these components. Always check this carefully.
- Negotiate in writing. Verbal agreements can lead to misunderstandings and are harder to prove in court. Always put your counter-offer and your employer’s response in writing.
- Look beyond the payment alone. A VSO leaves room to discuss other matters: a longer notice period, release from work duties, a positive reference letter, reimbursement of legal costs, or the removal of a non-compete clause.
- I'm asking for a legal budget. In most cases, employers are willing to cover the costs of legal assistance. This is standard practice – simply ask for it.
- Only sign when you are satisfied. After signing a VSO, you have a fourteen-day cooling-off period, but it is better not to sign until all agreed terms have been incorporated to your satisfaction.
What can you realistically expect
There is no legal formula for an above-statutory payment; it is and remains a negotiation. In practice, higher payments in Voluntary Severance Offer schemes tend to fall somewhere between one and two times the statutory redundancy payment. In particularly strong circumstances – a very long length of service, a demonstrably weak employer file, or culpable conduct by the employer – the outcome can be higher still.
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Plan a conversationIn addition to a higher payment, you might also consider a temporary continuation of salary or a contribution towards outplacement costs. These are alternatives that can have a financially comparable effect to a higher redundancy payment. Always discuss the tax implications as well: a larger lump-sum payment is taxed heavily, whereas smart spreading or the use of available tax relief (such as an annuity contribution) can yield more in net terms. Consult a tax adviser for your specific situation.
How an employment lawyer strengthens your position
Negotiating a higher redundancy payment requires both substantive knowledge and the right tone. Emotions inevitably play a role in a dismissal, and these can unconsciously weaken your negotiating position. An employment lawyer knows which arguments carry the most weight in practice, understands how employers think, and keeps a cool head where you may momentarily find that difficult. Furthermore, a lawyer can negotiate on your behalf, so you avoid placing unnecessary strain on the employment relationship.
Would you like to know more about everything relating to redundancy payments? Read our comprehensive information on the Redundancy Payment.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we understand how the labour market in the Brainport region operates and what is happening with employers in the area. We help you rapidly gain insight into your legal position, check the redundancy payment calculation for accuracy, and – if you wish – negotiate on your behalf with your employer. That way you are not on your own, and you get the most out of your dismissal situation.
Would you like to know what is possible in your situation? Contact us without obligation for an initial consultation. We are happy to think things through with you.
Frequently asked questions
Am I always allowed to negotiate a higher redundancy payment?
Yes. The statutory redundancy payment is a minimum. In a settlement agreement, you and your employer are free to agree on a higher payment. In most cases, the employer fully expects you not to accept the first proposal straight away.
The maximum statutory redundancy payment will be €19,000 in 2026.
In 2026, the maximum statutory redundancy payment amounts to €102,000 gross. If your annual salary exceeds that amount, one gross annual salary applies as the maximum. This is the statutory minimum to which you are entitled upon dismissal at the employer's initiative — in practice, a higher payment can be agreed.
Which arguments work best when negotiating a higher payment?
Strong arguments include: a long length of service, a weak dismissal case from the employer's perspective, a difficult position in the labour market (for example, due to age or specialism), urgency on the employer's part, and culpable conduct by the employer. Personal circumstances such as your family situation or high retraining costs can also be taken into account.
What is a fair compensation and how does it relate to the redundancy payment?
A fair compensation is an additional payment that the district court may award on top of the redundancy payment when the employer has acted in a seriously culpable manner. There is no statutory maximum for fair compensation. In negotiations over a settlement agreement, the risk of a fair compensation being awarded can be used as an argument to secure a higher payment.
Are the costs of an employment lawyer during negotiations reimbursed by the employer?
In most circumstances, yes. It is standard practice to request a legal budget when dealing with a settlement agreement. Employers generally agree to this, as it is also in their interest for the negotiation to proceed smoothly and for you to sign in a fully informed manner.
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.
