Your employer has presented you with a settlement agreement due to a reorganisation. The pressure to sign quickly can sometimes be intense, but agreeing without careful consideration risks losing important rights. In this article, you can read about the pitfalls involved and what you can do to protect yourself.
Why employers opt for a settlement agreement
During a reorganisation, an employer has two routes for parting ways with employees: a dismissal procedure via the UWV (Employee Insurance Agency) or termination by mutual consent via a settlement agreement (VSO). In practice, many employers opt for the VSO, as it avoids a substantive review by the UWV. This may seem simpler for you as an employee, but it also means you must ensure the terms are correct yourself. A VSO is only legally valid if you consent to it voluntarily — you can never be forced to sign.
The dangerous pitfall of time pressure
Employers sometimes impose a short deadline within which you must decide. That time pressure may feel like a given, but legally speaking you are entitled to sufficient time to consider before signing. After signing, there is also a statutory cooling-off period of fourteen days. Within that period, you may withdraw from the agreement in writing without giving any reason. If your employer has not informed you of this cooling-off period, it is extended to three weeks. That extra time exists for good reason — make use of it.
What can go wrong in the wording of the VSO?
A Voluntary Severance Offer (VSO) in a redundancy situation stands or falls on the correct wording. Minor errors or ambiguous clauses can have serious consequences, particularly for your unemployment benefit (WW). Consider the following risks:
- Initiative not attributable to the employer. for your entitlement to WW benefit, it is essential that the VSO makes clear that the employer initiated the termination and that there is no urgent reason (such as summary dismissal) underlying it.
- End date is incorrect or too short: between the signing date and the end date of your employment, there must be a period equal to the statutory notice period applicable to the employer. A notional notice period that is too short can lead to a delay or refusal of your unemployment benefit.
- A transition payment that is too low The statutory transition payment in 2026 amounts to a maximum of €102,000 gross, or one gross annual salary if that is higher. You accrue one third of a monthly salary for each full year of service. If the VSO offers a lower amount without proper justification, you are leaving money on the table.
- Full and final settlement without reservation a broad settlement clause means that after signing you can no longer assert any claims, even if it later transpires that errors were made in applying the mirror principle or the selection procedure.
- Absent or inadequate social provision plans In the case of larger collective redundancies, a social plan often exists. The mere existence of such a plan does not automatically mean that your individual VSO is optimal or that a tailored arrangement is out of the question.
Check whether the mirror principle has been applied correctly
Before signing the VSO, it is advisable to check whether your employer has correctly identified the redundant individual. In cases of redundancy for economic reasons, the mirror principle (afspiegelingsbeginsel) applies: staff are selected for redundancy based on age group and interchangeable job category. If this has not been done correctly, it directly impacts your position. By signing the VSO without verifying this, you may be forfeiting that line of defence. If in doubt, please consult a Reorganisation and economic dismissal in Eindhoven specialist before agreeing.
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Plan a conversationNegotiating is normal and sensible
Many employees assume that the offer set out in the VSO is fixed. This is a misconception: a settlement agreement is negotiable. You can enter into discussions about the level of the compensation, the end date, release from work during the notice period, payment of outstanding holiday days, and any training or outplacement budget. Negotiating is standard practice in reorganisations and is expected by employers. As long as you have not signed, nothing is set in stone.
Practical steps before you sign
Take your time and work through at least the following steps before putting your signature to the document:
- Have the VSO reviewed by an employment law adviser, even if the contents seem reasonable to you at first glance.
- Calculate your own redundancy payment based on your years of service and salary, and compare this with the amount stated in the VSO.
- Please check that the end date is correct and that the notional notice period corresponds to what applies under statute or the applicable collective agreement (CAO).
- Verify that the VSO states that the initiative lay with the employer and that there is no urgent reason for the dismissal.
- Find out whether a social plan applies and what that means for you in addition to the VSO.
- Record in writing (by email) when you received the offer, so that the applicable cooling-off periods are clearly established.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we understand how it feels to have to make a far-reaching decision under time pressure. We know the labour market in the Brainport region and help you quickly and practically: from reviewing the VSO to conducting negotiations with your employer. Would you like to know whether your agreement is sound and whether there is scope for better terms? Get in touch with us on a no-obligation basis. An initial consultation costs you nothing, but it could be worth a great deal.
Frequently asked questions
Do I have to sign a settlement agreement during a reorganisation?
No, you are never obliged to sign a VSO. If you do not sign, the employer must apply for a dismissal permit from the UWV on economic grounds. That process offers you greater legal protection, but takes longer. Always seek advice about the best course of action in your particular situation.
How long is my cooling-off period after signing a voluntary severance agreement?
Following signing, you have a statutory cooling-off period of fourteen days under Article 7:670b of the Dutch Civil Code. Within this period, you may withdraw from the agreement in writing without providing any reason. If the employer has not informed you of this cooling-off period, it is extended to twenty-one days.
What is the maximum transition payment I can receive in 2026?
In 2026, the maximum transition payment is €102,000 gross. If you earn more than €102,000 per year, your gross annual salary will serve as the maximum. The accrual rate is one third of a monthly salary for each full year of service completed.
Can I negotiate the VSO if a social plan is already in place?
Yes, even where a social plan applies, individual negotiation is possible in most cases. The social plan sets the collective framework, but that does not mean a higher amount, a different end date, or additional provisions such as an outplacement budget are out of the question.
What happens to my Welfare benefit if I sign a Voluntary Severance Offer?
You retain your entitlement to WW benefit provided the VSO clearly states that the employer took the initiative, that there is no urgent reason for the dismissal, and that the notional notice period has been correctly observed. Errors in the wording or an end date that is too early can lead to a delay or refusal of your WW benefit by the UWV.
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.
