Having a Settlement Agreement Reviewed in Eindhoven: How it Works

Having your settlement agreement reviewed

Having your settlement agreement reviewed before you sign it prevents costly mistakes. Below you can read what an employment lawyer looks for when reviewing one.

Having a termination agreement reviewed in Eindhoven is a wise step before you sign. The arrangements set out in it determine not only when your employment ends, but also whether you retain your entitlement to unemployment benefit (WW), what you receive as a payment, and what obligations you carry into your next job. Do not be caught out by small pieces of wording with major consequences.

What exactly is a termination agreement?

A termination agreement and a settlement agreement (VSO) are, in practice, the same document. It is a written agreement by which you and your employer jointly decide to end the employment relationship, without the involvement of UWV or the subdistrict court. Because you as an employee are consenting voluntarily, it is all the more important that everything is recorded correctly and in full from a legal perspective.

The agreement typically contains arrangements regarding the end date, the severance payment, the notice period, any release from the duty to work, payment of accrued holiday days, and the reason for the dismissal. That reason is not a minor detail: an incorrect formulation can directly result in UWV refusing your unemployment benefit (WW).

Why having it reviewed is so important

Many employees think they can simply read through a VSO and sign it once the payment looks right. But a legal specialist looks beyond the monetary amount. The wording of the reason for dismissal, the calculation of the notional notice period, and the inclusion of the statutory cooling-off period are all points that are decisive for your legal position after dismissal.

For instance, the agreement must clearly state that the initiative for the dismissal lies with the employer. If it says something different, or if this information is missing, UWV may conclude that you resigned of your own accord and you could lose your entitlement to unemployment benefit (WW). The notice period is also crucial: you are only entitled to unemployment benefit (WW) once the statutory notice period has elapsed, and that period must be correctly incorporated into the VSO.

The statutory cooling-off period after signing

Have you already signed and are you having second thoughts? There is good news. Under Article 7:670b paragraph 2 of the Dutch Civil Code, as an employee you have fourteen days after concluding a settlement agreement in which to dissolve the agreement in writing without giving any reason. You are not required to give a reason; a written statement to your employer is sufficient.

If your employer has not mentioned this right in the VSO, the cooling-off period is automatically extended to three weeks. Please note that you may only exercise this right of withdrawal once every six months. If you use the cooling-off period, your employment contract simply remains in force.

What a legal specialist reviews in your VSO

An employment law specialist who reviews your termination agreement in Eindhoven assesses more than just the payment. The following are the most important points of attention:

• Reason for dismissal and initiative: does it state that the dismissal is taking place on the initiative of the employer and that there is no question of culpable conduct?
• Opzegtermijn: has the correct statutory or contractual notice period been observed, so that your unemployment benefit (WW) starts at the right time?
• Vergoeding: is the offered severance payment reasonable in relation to your years of service, salary, and the circumstances?
• Holiday entitlement and final settlement: are outstanding holiday hours and other outstanding entitlements paid out in full?
• Vrijstelling van werk: if you are placed on garden leave, does the agreement also state that your salary continues as normal and that holiday entitlement does not lapse?
• Non-competition or non-solicitation clause: do these clauses still apply after the end of the employment, or have they been removed in the settlement agreement?
• Finale kwijting: do you understand exactly what you are releasing liability for, and are any exceptions included?
• Bedenktijd: is the statutory fourteen-day cooling-off period explicitly stated in the agreement?

Room to negotiate

A first proposal from your employer is rarely the final one. In most cases there is room to negotiate the amount of the payment, the end date, the duration of a non-compete clause, or a contribution towards legal costs. Many settlement agreements already include a budget for legal assistance; if it is not included, a legal adviser can request such a contribution on your behalf.

Do not let yourself be rushed by a short deadline set by your employer. In practice, one to two weeks is considered a reasonable period in which to respond to a draft settlement agreement. Time pressure is sometimes a deliberate negotiating tactic, but you have the right to seek careful advice before making a decision.

How to proceed when you receive a settlement agreement

Not sure where to start? This step-by-step guide will help you on your way:

• Read the agreement carefully, but do not sign anything yet.
• Note the date of receipt and any deadline your employer mentions.
• Engage an employment lawyer as soon as possible for a legal review.
• Ask whether a budget for legal assistance is available or can be included in the settlement agreement.
• Discuss with your lawyer whether the terms are reasonable and what could be improved.
• Have you already signed but are having second thoughts? Make use of the statutory cooling-off period of fourteen days.

More general information about your rights upon dismissal by mutual consent can be found on the page about the settlement agreement.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven, we understand how uncertain and overwhelming it feels to suddenly find a termination agreement on your desk. We assist employees in Eindhoven and the Brabant region with a clear, personal assessment of their settlement agreement: what it says, what is missing, and what you can still negotiate to your advantage. That way, you approach the negotiating table well informed, rather than regretting what you signed after the fact.

Would you like your termination agreement reviewed? Contact us without obligation. We would be happy to look at your situation together with you.

Frequently asked questions

What is the difference between a termination agreement and a vaststellingsovereenkomst (settlement agreement)?

There is no legal difference: both terms refer to the same document. It is a written agreement by which the employer and employee mutually agree to end the employment relationship, without the involvement of UWV or the subdistrict court.

How much time do I have to have a settlement agreement reviewed?

There is no statutory deadline for reviewing the agreement before signing, but in practice one to two weeks is considered a reasonable period in which to respond to a draft agreement. If you have already signed, you have fourteen days under Article 7:670b(2) of the Dutch Civil Code to dissolve the agreement without giving any reason. If the cooling-off period is not mentioned in the settlement agreement, a period of three weeks applies automatically.

Will I lose my unemployment benefit if I sign a settlement agreement?

Not automatically. In most cases you retain the right to unemployment benefit (WW), provided the settlement agreement has been drafted correctly in legal terms. For instance, it must state that the dismissal is at the employer's initiative, that there is no question of culpable conduct, and that the correct notice period has been observed. An incorrect formulation may result in UWV rejecting your claim.

Can I negotiate the contents of a settlement agreement?

Yes, absolutely. An employer's initial proposal is almost always a starting point, not a final offer. You can negotiate the amount of the payment, the end date, the duration of a non-compete clause, and a contribution towards legal costs. An employment lawyer can support you in this and conduct the discussions on your behalf.

What happens if I dissolve the settlement agreement within the cooling-off period?

If you notify the other party in writing within the statutory cooling-off period of fourteen (or twenty-one) days that you are dissolving the agreement, the settlement agreement lapses and your employment contract remains in force. Your employer can then initiate fresh negotiations or commence dismissal proceedings through UWV or the subdistrict court.

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.