Negotiating a settlement agreement in Eindhoven how to go about it

Negotiating a settlement agreement: how to approach it

Receiving a settlement agreement is one thing, but signing it straight away is almost never a good idea. 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 approach this and what to look out for in Eindhoven.

A settlement agreement is a starting point, not an end point

Many employees think that the settlement agreement presented to them is a fixed, non-negotiable offer. 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. So 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 payment to the end date, from any non-competition clause to the wording of the reason for dismissal. That last point in particular can affect your entitlement to unemployment benefit (WW), so it is about much more than money alone.

Know your starting position before you negotiate

A strong negotiator knows where they stand. Start 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 level of the statutory transition payment to which you are entitled?

The transition payment serves as the statutory minimum upon dismissal at the employer's initiative. In 2026, the statutory maximum is €102,000 gross. However, in a settlement agreement you and your employer are free to agree a higher payment — this maximum does not then apply 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 sum of money. These are the elements most worth discussing:

• Ontslagvergoeding: is the offered payment 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 entitlement to unemployment benefit (WW).
• Vrijstelling van werk: will you be sent home on full pay during the period up to the end date?
• Concurrentiebeding: does the agreement contain a clause that restricts your future opportunities? This is often negotiable.
• Outplacementbudget: can your employer provide a budget for career guidance or training?
• Reimbursement of legal costs: many employers are willing to cover (part of) the costs of an employment lawyer who reviews your settlement agreement.
• Reference and certificate of employment: agree 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 strain the relationship with your employer. A businesslike, calm approach works best. Avoid emotional arguments and instead support your wishes with facts: how long you have contributed, what your role was, and what is legally reasonable.

Also wait for the employer to put forward a proposal first. Whoever makes the first offer weakens their own position. Do not respond to the substance immediately; instead, take the time to go through everything carefully. You can then draw up a well-reasoned counter-proposal.

Practical tips for better negotiation 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 the legal advice costs to be included as a reimbursement in the settlement agreement.
• Check whether the notice period has been calculated correctly — an error here can damage your entitlement to unemployment benefit (WW).
• Have any non-compete clause or non-solicitation clause critically assessed; these can have serious consequences after dismissal.
• Put all verbal agreements in writing before you sign.
• Be aware 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 in a particularly strong negotiating position. Think of cases where the employer has not built a solid dismissal file, where the grounds for dismissal are legally questionable, or where the dismissal occurs after a long period of service. There are also opportunities to negotiate better terms when a reorganisation has taken place in which the mirror-image principle (afspiegelingsbeginsel) has not been applied correctly, or when you are ill at the time the settlement agreement is offered. In such situations, legal advice is not a luxury — it is a sound investment.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we know the local labour market and understand what a realistic and achievable negotiating outcome looks like in your situation. We review your settlement agreement critically, point out areas where improvement is possible, and support you in drawing up a robust counter-proposal. Would you prefer us to conduct the negotiation on your behalf? That is also an option — discreetly and effectively, without the matter needing to go to court.

Have you received a settlement agreement and would you like to know whether you can achieve more? Contact us without obligation for an initial consultation. We are happy to take a look with you.

Frequently asked questions

Should I make a counter-proposal when I receive a settlement agreement?

That is almost always advisable. Most employers already take into account the possibility that an employee will negotiate when drawing up their initial proposal. If you agree immediately, you may be leaving better terms on the table. Have the proposal checked by an employment lawyer before you respond.

What is the difference between the transition payment and the compensation in a settlement agreement?

The statutory transition payment is the minimum amount you are entitled to upon dismissal initiated by the employer. With a settlement agreement, the employer and employee are free to agree on a higher payment. There is no statutory maximum, which makes it possible to negotiate a higher amount.

Can the employer put pressure on me to sign quickly?

An employer may ask you to respond, but you are entitled to a reasonable period for consideration. In addition, in most cases you can make use of 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 further?

If the employer is unwilling to cooperate, that does not mean there is nothing you can do. You can refuse the settlement agreement, after which the employer must initiate a formal dismissal procedure through UWV or the subdistrict court. Those 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 advice costs in the settlement agreement. If this is not included in the initial proposal, ask for it explicitly during the negotiation. It is common practice and certainly worth negotiating.

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.