A conflict with your manager can escalate to the point where a settlement agreement (VSO) appears on the table. It is a significant moment: your job is on the line and the pressure to decide quickly is intense. Nevertheless, it is wise to first gain a clear understanding of what is happening and what your actual position is.
How does a settlement agreement arise from a conflict with your manager?
A disagreement or clashing personalities in the workplace do not lead to dismissal overnight. But when relations have been strained for a prolonged period and mediation has yielded nothing, an employer will sometimes opt for the route of mutual consent. They then propose a settlement agreement: a written agreement by which your employment ends with your consent.
It is important to know that an employer cannot force you to sign such an agreement. You always retain the right to say no or to negotiate better terms.
What is typically included in a settlement agreement in these types of conflicts?
The content of a settlement agreement varies by situation, but in a conflict with a manager you will often see the following elements:
- End date: when does the employment officially terminate?
- Severance payment: at minimum the statutory transition payment, sometimes supplemented with an additional sum.
- Redundancy: wording that does not jeopardise your unemployment benefit claim.
- Release from work: will you still be required to work until the end date, or will you be released earlier?
- Confidentiality: are you permitted to discuss the conflict or the settlement with others?
- Full and final settlement: a clause whereby both parties declare they have no further claims against each other.
Every clause has consequences for your situation. Do not let them pass unread.
What are your rights as an employee?
When you receive a settlement agreement, you have a statutory cooling-off period of fourteen days after signing. Within that period you can dissolve the agreement in writing without giving a reason. This period applies even if you have already signed the agreement.
You also have the right to seek advice before signing anything. An employment lawyer can scrutinise the text, identify weaknesses, and negotiate improvements on your behalf.
Practical steps when faced with a settlement agreement proposal following a conflict
Not sure where to begin? These steps will help you get started:
- Do not sign anything immediately. Take the time you need and do not be pressured by your employer.
- Read the settlement agreement carefully. Note everything that is unclear or that raises questions.
- Check the reason for dismissal. This determines whether you are entitled to unemployment benefit.
- Ask for the transition payment. After two or more years of employment you are generally entitled to this.
- Consult an employment lawyer. They know the pitfalls and can negotiate a better deal on your behalf.
- Use your cooling-off period. Even after signing, you have fourteen days to reconsider your decision.
When is it worthwhile to negotiate further?
Many employees accept the first proposal, whilst there is often room for improvement. Think of a higher payment, a longer release from work, or the removal of a non-compete clause. Or better wording of the reason for dismissal, so that your unemployment benefit entitlement is protected.
Arrange a no-obligation chat and discover how we can help you.
Plan a conversationThe stronger your legal position, the more room you have to negotiate. If an employer is unable to demonstrate much about the seriousness of the conflict, they will be more inclined to make concessions. An employment lawyer can help you assess how strong your starting position truly is.
Further background on your rights and options in an employment dispute can be found on the overview page Settlement agreement in a conflict: your rights and approach.
Common mistakes when dealing with a settlement agreement following a conflict
Out of habit or stress, employees sometimes make decisions they later regret. These are the most common pitfalls:
- Signing too quickly without properly understanding the content.
- Forgetting to negotiate the amount of the payment.
- Failing to check whether the reason stated in the settlement agreement entitles you to unemployment benefit.
- Leaving a non-compete clause in place when it was open to discussion.
- Not seeking legal advice because you assumed it would be too costly.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven we know the local employment market and understand how difficult it is to think clearly when you are in the middle of a conflict. We take a level-headed look at your situation, explain your options in plain terms, and stand beside you when negotiating a fair outcome.
Have you received a settlement agreement following a conflict with your manager, or would you like to know what your rights are before taking a step? Get in touch with us without obligation. We are happy to think things through with you.
Frequently asked questions
Do I have to accept a settlement agreement if my employer offers one after a conflict?
No, you are never obliged to sign a settlement agreement. It is a proposal that you can negotiate or refuse. It is, however, wise to seek legal advice so that you make a well-considered decision.
What happens to my unemployment benefit if I sign a settlement agreement after a conflict with my manager?
You are entitled to unemployment benefit if the reason for dismissal in the settlement agreement is correctly worded and you are not deemed to have caused your own unemployment. Always have the wording of the agreement checked to avoid problems with the UWV.
Can I still reverse a settlement agreement after I have signed it?
Yes, after signing you have a fourteen-day cooling-off period. Within that period you can dissolve the settlement agreement in writing without having to give a reason. Make sure you do this in good time and in a demonstrable manner, for example by recorded post or email.
How high should the payment in a settlement agreement be in the case of a conflict?
There is no fixed standard, but the statutory transition payment serves as a starting point. Depending on the circumstances of the conflict and your legal position, there may be room for a higher payment. An employment lawyer can help you assess what is realistic.
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.
