You can refuse a settlement agreement and still negotiate by: Clearly stating your refusal: Be direct and unambiguous in your refusal, but maintain a professional and polite tone. Explaining your reasons (briefly): Provide a concise explanation for why you are rejecting the current offer. This shows you've considered it and aren't refusing arbitrarily. Focus on specific issues like an insufficient amount, unfair terms, or an acknowledgement you're seeking. Proposing counter-terms: Immediately follow up your refusal with your own proposed terms or a revised offer. This demonstrates your continued willingness to reach a resolution. Suggesting further discussion: Invite the other party to continue negotiations. This could be through further meetings, calls, or written communication. Setting a deadline for a response: If appropriate, you can provide a timeframe for them to respond to your counter-proposal, but be reasonable. Having a clear understanding of your bottom line: Before you start negotiating, know what your minimum acceptable outcome is. This will help you stay firm on key points. Being prepared to walk away: While you want to negotiate, understand that sometimes an agreement cannot be reached. Being prepared for this possibility can strengthen your position. For example, you could say something like: "Thank you for your settlement proposal dated [Date]. After careful consideration, we acknowledge your offer, however, we are unable to accept it in its current form due to [briefly state reason, e.g., the proposed compensation not adequately reflecting the damages incurred]. We remain committed to finding a mutually agreeable resolution and would like to propose [your counter-proposal/terms] for your consideration. We are available to discuss this further at your earliest convenience."

Refusing a settlement agreement: is that allowed?

Your employer presents you with a settlement agreement, but the terms are not what you had expected. Bear in mind: you are never obliged to sign, and refusing is far from the end of the conversation. By deliberately refusing or pressing pause, you will in many cases improve your position at the negotiating table.

Je mag altijd weigeren

A settlement agreement (VSO) is a bilateral agreement that only comes into existence if both parties consent. Your employer can never compel you to sign it. If you refuse, your employment contract simply continues as though no proposal had ever been put on the table. Your employer must then initiate a formal dismissal procedure through UWV or the subdistrict court and demonstrate a valid reason for dismissal. For many employers, this is a time-consuming and uncertain process, which in turn strengthens your position.

Oefen je werkgever druk op je uit om snel te tekenen? Dan is dat een signaal om extra alert te zijn. In de praktijk is één tot twee weken een redelijke termijn om het voorstel te bestuderen en juridisch advies in te winnen. Laat je niet opjagen door kunstmatige deadlines.

Refusing as a starting point for negotiation

A first VSO is rarely the final offer. When making an initial proposal, employers deliberately put forward a package that falls below the statutory standard, as an opening move in the negotiation. By not agreeing straight away, you give yourself the opportunity to explore what is possible. In practice, rejected VSOs regularly lead to renegotiation and improved terms.

Almost all elements of a settlement agreement are open to discussion, as long as you and your employer are willing to enter into that conversation. Consider:

• The level of the severance payment (at minimum the statutory transition payment)
• The end date and the length of the notice period
• Release from work on full pay
• The removal or limitation of a non-compete clause
• The wording of the reference letter and the final settlement of accounts
• Reimbursement of the costs of legal assistance

As long as the conversation remains open, you have more room to manoeuvre than you might think. Once a formal procedure is under way, that room largely disappears.

What happens if you refuse

If you do not sign the settlement agreement, nothing about your employment-law position changes at that moment. You keep your job, your salary, and all associated terms and conditions of employment. Your employer then has two options: make a new, improved offer or start a dismissal procedure. That second route is considerably harder and more uncertain for them, precisely because they must demonstrate that there is a valid ground for dismissal.

Regarding your unemployment benefit (WW) entitlement: if you refuse and your employer proceeds with the dismissal through a formal procedure, you retain your right to unemployment benefit (WW) in principle, provided the dismissal is not attributable to you. If in doubt, always have a specialist check whether any settlement agreement (VSO) has also been drafted in a 'WW-proof' manner.

If you have already signed, you still have a cooling-off period

Perhaps you have already signed but are having second thoughts afterwards. If so, there is good news: after signing, you as an employee are entitled by law to a 14-day cooling-off period in which you may withdraw from the agreement without giving any reason. This is set out in Article 7:670b paragraph 2 of the Dutch Civil Code. To do so, you send a written statement to your employer, after which the settlement agreement is cancelled and your employment contract revives. Is the cooling-off period not mentioned in the settlement agreement itself? Then that period is automatically extended to 21 days. Please note: you may only invoke this right once every six months.

Practical tips for your negotiation

• Reageer niet impulsief. Take your time and have your settlement agreement checked before you respond to anything.
• Ken je minimumrechten. In the event of dismissal at the employer's initiative, you are in principle entitled to at least the statutory transition payment.
• Schrijf alles op. Put pressure, verbal assurances, and agreements in writing.
• Blijf zakelijk. Support your requests with facts and remain calm during the conversation; a professional tone strengthens your credibility.
• Schakel tijdig hulp in. A legal specialist negotiates on your behalf, keeps emotions out of the room, and knows exactly which arguments carry weight.
• Know when to agree. Negotiating has a purpose: a fair settlement. Once that is on the table, you can also make a conscious decision to say yes.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we understand that receiving a settlement agreement proposal can feel daunting and overwhelming, especially if you are not entirely sure what your rights are. We guide you step by step: from reviewing the first draft to conducting the negotiations with your employer. That way you will never agree to less than you are entitled to. Would you like to know where you stand? Read more about the settlement agreement or contact us without obligation. We are happy to think things through with you, including if your situation is in Eindhoven or the Brabant region.

Frequently asked questions

Can I refuse a settlement agreement without consequences for my job?

Yes. A settlement agreement is a voluntary agreement; your employer can never force you to sign one. If you refuse, your employment contract simply continues. Your employer must then initiate a formal dismissal procedure through UWV or the subdistrict court and demonstrate a valid ground for dismissal.

Does refusing the settlement agreement first improve my negotiating position?

In many cases, yes. A first settlement agreement proposal is rarely the maximum offer. By not agreeing immediately and making your wishes known, room is created for a better payment, more favourable leaving date, adjustment of clauses, or reimbursement of legal costs.

What can I negotiate in a settlement agreement?

Almost all elements are open to discussion, such as the amount of the severance payment (at minimum the statutory transition payment), the end date, release from work with full pay, the removal of a non-compete clause, and the wording of the reference letter.

After signing, do I still have the option to change my mind?

Yes. Under Article 7:670b paragraph 2 of the Dutch Civil Code, as an employee you have a statutory 14-day cooling-off period after signing, during which you may revoke the settlement agreement in writing without giving any reason. If the cooling-off period is not mentioned in the settlement agreement, a period of 21 days applies. You may make use of this once every six months.

Will I lose my entitlement to unemployment benefit (WW) if I refuse the settlement agreement?

No, refusing in itself does not affect your entitlement to unemployment benefit (WW). If your employer subsequently proceeds with dismissal through UWV or the subdistrict court and you are dismissed, you retain your entitlement to unemployment benefit (WW) in principle, provided the dismissal is not attributable to you. If in doubt, always check whether any settlement agreement has also been drafted to be WW-compliant.

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.