Settlement Agreement Following a Conflict with Your Manager: How Should You Handle It?

A conflict with your line manager can escalate to the point where a settlement agreement (VSO) is placed on the table. This is a significant moment: your job is at stake and there is considerable pressure to make a quick decision. Nevertheless, it is wise to first gain a clear understanding of what is happening and what your actual position is.

How does a VSO arise from a conflict with your line manager?

A disagreement or clash of personalities in the workplace does not lead to dismissal overnight. But when relations have been disrupted for a prolonged period and mediation has yielded nothing, an employer sometimes opts for the route of mutual consent. They then propose a settlement agreement (VSO): a written agreement under which the employment contract ends with your consent.

Important to know: an employer kan 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 this type of conflict?

The content of a settlement agreement varies depending on the situation, but in the case of a conflict with a manager you will often see the following elements:

• Termination date: when does the employment contract officially end?
• Ontslagvergoeding: at minimum the statutory transition payment, sometimes supplemented by an additional amount.
• Neutrale ontslagreden: wording that does not jeopardise your unemployment benefit (WW) claim.
• Exemption from work: will you continue working until the end date or will you be released from work earlier?
• Geheimhouding: are you permitted to speak to others about the conflict or the payment?
• Final discharge: a provision in which both parties declare that they have no further claims against each other.

Every clause has consequences for your situation. Do not let them pass by 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 may dissolve the agreement in writing without giving any reason. That period applies even if you have already signed the settlement agreement.

In addition, you have the right to seek advice before signing anything. An employment lawyer can review the text, identify weak points and negotiate improvements on your behalf.

Practical steps when you receive a settlement agreement proposal following a conflict

Not sure where to start? These steps will help you on your way:

• Teken niets direct. Take the time you need and don't let your employer rush you.
• Lees de VSO zorgvuldig. Write down everything that is unclear or that you have questions about.
• Check the reason for dismissal. This determines whether you are entitled to unemployment benefit (WW).
• Ask for the transition payment. If you have been employed for two years or more, you are generally entitled to this.
• Engage an employment lawyer. They know the pitfalls and can negotiate a better deal on your behalf.
• Gebruik je bedenktijd. Even after signing, you have fourteen days to change your mind.

When is it worth negotiating further?

Many employees accept the first offer, whilst there is often room for improvement. Think of a higher payment, a longer period of release from work, or the removal of a non-compete clause. Or a better formulation of the reason for dismissal, so that your unemployment benefit (WW) rights are protected.

The stronger your legal position, the more room you have to negotiate. If an employer has little evidence regarding the seriousness of the dispute, they will be more inclined to make concessions. An employment lawyer can help you assess how strong your starting position really is.

More background information on your rights and options in an employment dispute can be found on the overview page Settlement agreement in a conflict situation: your rights and approach.

Common mistakes when signing a settlement agreement (VSO) following a dispute

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 contents.
• Forgetting to negotiate the amount of the payment.
• Not checking whether the reason stated in the settlement agreement entitles you to unemployment benefit (WW).
• Leaving a non-compete clause in place when it was open to discussion.
• Not seeking legal advice because you thought it would be too expensive.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we know the local labour 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 language, and stand by your side 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 any steps? Feel free to contact us with no 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 can make a well-considered decision.

What happens to my unemployment benefit (WW) if I sign a settlement agreement after a conflict with my manager?

You are entitled to unemployment benefit (WW) if the reason for dismissal in the settlement agreement is correctly worded and you are not deemed to be at fault for becoming unemployed. Always have the wording of the agreement checked to avoid problems with the UWV.

Can I reverse a settlement agreement after I have signed it?

Yes, once you have signed you have a fourteen-day cooling-off period. Within that period you can cancel the settlement agreement in writing without having to give a reason. Make sure you do this in good time and in a demonstrable way, for example by recorded post or e-mail.

How large should the payment in a settlement agreement be in the event 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 scope for a higher payment. An employment lawyer can help you assess what is realistic.

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.