Receiving a settlement agreement is one thing, but signing it straight away is almost never a wise move. Your employer’s first proposal is rarely their best offer — there is almost always room to negotiate better terms. In this article, you can read how to go about it and what to watch out for in Eindhoven.
A settlement agreement is a starting point, not an endpoint
Many employees assume that the Settlement agreement they are presented with is set in stone. That is a misconception. When drawing up the proposal, your employer has already taken into account the possibility that you will negotiate. If you agree straight away, you are likely leaving better terms on the table. Always take the time to study the proposal thoroughly before you respond.
Both financial and non-financial elements are open for discussion: from the level of the compensation to the end date, from a possible non-compete clause to the wording of the reason for dismissal. The latter in particular can affect your entitlement to unemployment benefit, so it is about far more than just money.
Know your starting position before you negotiate
A strong negotiator knows where they stand. Begin by mapping out your own position. Does your employer have a well-substantiated dismissal file? Is the reason for dismissal legally sound? How long have you been employed, and what is the statutory redundancy payment you are entitled to?
The statutory redundancy payment serves as the legal minimum when dismissal is initiated by the employer. In 2026, the statutory maximum is €102,000 gross. However, in a settlement agreement you and your employer are free to agree on a higher payment — this maximum does not then act as a ceiling. The stronger your legal position, the greater the chance of a better deal.
What exactly can you negotiate about?
A settlement agreement contains more than just a figure. These are the elements most worth discussing:
- Severance payment: is the offered compensation in line with the market and reasonable given the circumstances?
- End date and notice period: is the correct notice period being observed? This directly affects your unemployment benefit entitlement.
- Relief from duties will you be sent home on full pay during the period leading up to the end date?
- Non-compete clause: does the agreement contain a clause that limits your future opportunities? This is often negotiable.
- Outplacement budget: can your employer provide a budget for career guidance or retraining?
- Legal costs contribution: many employers are willing to (partially) cover the costs of an employment lawyer who reviews your settlement agreement.
- Reference and testimonial: agree on what will be communicated about you, both internally and externally.
How to conduct the conversation with your employer
Negotiating your own departure is an unusual situation. You want a fair outcome, but you also do not want to unnecessarily sour the relationship with your employer. A businesslike, calm approach works best. Avoid emotional arguments and instead support your requests with facts: how long you have contributed, what your role was, and what is legally reasonable.
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Plan a conversationAlso wait for the employer to come to you with a proposal. Whoever makes the first offer weakens their own position. Do not respond to the content immediately — take time to go through everything carefully. Then put together a well-reasoned counter-proposal.
Practical tips for better negotiating outcomes
- Never sign the first proposal without having it reviewed by an employment lawyer.
- Set a minimum threshold: what are the minimum terms under which you would agree?
- Always ask for a contribution towards legal advisory costs to be included in the settlement agreement.
- Check that the notice period has been calculated correctly — an error here can damage your unemployment benefit entitlement.
- Have any non-compete or non-solicitation clause critically assessed; these can have significant consequences after dismissal.
- Ensure all verbal agreements are put in writing before you sign.
- Bear in mind that negotiating is normal; most employers expect a counter-proposal.
When your negotiating position is particularly strong
There are situations in which you as an employee are exceptionally well-placed to negotiate. Think of cases where the employer has not built a watertight dismissal file, where the reason for dismissal is legally questionable, or where the dismissal takes place after a long period of service. There are also opportunities to secure better terms when a redundancy process has not correctly applied the reflection principle, or when you are on sick leave at the time the settlement agreement is offered. In such situations, legal advice is not a luxury — it is a smart investment.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we know the local employment market and understand what a realistic and achievable negotiating outcome looks like in your situation. We review your settlement agreement critically, highlight the areas that can be improved, and support you in drawing up a robust counter-proposal. Would you prefer us to conduct the negotiation on your behalf? That is also possible — discreetly and effectively, without the need for court proceedings.
Have you received a settlement agreement and would like to know whether you can achieve more? Contact us without obligation for an initial consultation. We would be happy to take a look with you.
Frequently asked questions
Yes, you should consider making a counter-proposal when you receive a settlement agreement.
That is almost always advisable. Most employers already factor in the possibility that an employee will negotiate when drawing up their initial proposal. If you agree straight away, you may be leaving better terms on the table. Have the proposal reviewed by an employment lawyer before you respond.
What is the difference between the statutory redundancy payment and the compensation in a settlement agreement?
The statutory redundancy payment is the minimum amount you are entitled to when dismissal is initiated by the employer. In a settlement agreement, the employer and employee are free to agree on a higher payment. No statutory maximum applies in that case, which makes negotiating a higher payment possible.
Can my employer pressure me into signing quickly?
An employer may ask you to respond, but you are entitled to a reasonable period to consider the offer. Furthermore, in most cases you can still exercise the statutory right of withdrawal within 14 days of signing a settlement agreement, without needing to give a reason. Do not allow yourself to be rushed.
What if my employer refuses to negotiate any further?
If the employer is unwilling to engage, that does not mean there is nothing you can do. You can decline the settlement agreement, after which the employer must initiate a formal dismissal procedure through the UWV or the cantonal court. These procedures have their own rules and prospects of success. An employment lawyer can assess how strong your position would be in such a procedure.
Does the employer pay the costs of an employment lawyer in connection with a settlement agreement?
Many employers are willing to include a contribution towards legal advisory costs in the settlement agreement. If this is not in the initial proposal, raise it explicitly during negotiations. It is customary and certainly worth negotiating for.
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.
