How do you negotiate a better settlement agreement during a dispute?

Negotiating a VSO during an employment dispute

During an employment dispute, you are sometimes presented with a settlement agreement (VSO) and asked to sign it quickly. That is precisely the moment not to act in haste, but instead to negotiate calmly. With the right approach, you can often secure better terms than your employer's initial proposal.

Why negotiating pays off when it comes to a settlement agreement

A VSO is not a final destination, but a starting point for negotiation. Employers deliberately make an initial offer that leaves room for adjustment. Knowing the rules of the game puts you in a stronger position at the negotiating table.

In a dispute, the employer often wants to reach a resolution quickly. This gives you, as the employee, a negotiating position. You do not have to accept the first proposal, and in most cases more is achievable than you might think.

These are the most important points to negotiate

A VSO involves more than just a severance payment. Many employees focus solely on the monetary amount, while there are also other terms that can significantly affect your situation after dismissal.

When negotiating, pay attention at the very least to the following elements:

• Ontslagvergoeding: Has the transition payment been calculated correctly? Is there scope for an additional payment, particularly if the conflict arose partly due to the employer's actions?
• Einddatum: A later end date means a longer period of income and a stronger starting position for your WW benefit claim.
• Neutrale ontslagreden: Make sure the settlement agreement states that the dismissal is not your fault, so that your unemployment benefit (WW) is not put at risk.
• Vrijstelling van werk: It is frequently agreed that you are no longer required to work during the remaining period, but will continue to receive your salary.
• Eindafrekening: Think about accrued holiday days, and any potential bonus or thirteenth month payment.
• Confidentiality and reference letter: Agree on how your departure will be communicated externally, and ensure you receive a positive reference letter.

The right strategy when negotiating

Negotiating a settlement agreement requires preparation. Know what you want, but also be aware of the limits of what is reasonable. A few practical guidelines:

• Reageer niet direct: You are entitled to a cooling-off period. Make use of it, even if the employer is applying pressure.
• Stel prioriteiten: Decide in advance which points matter most to you. Not every point carries equal weight.
• Substantiate your counter-proposal: A well-reasoned argument strengthens your position. Refer, for example, to the length of your employment, your position in the labour market, or the employer's role in the conflict.
• Keep communications in writing: What is set out in an e-mail is easier to evidence at a later stage than a verbal commitment.
• Laat je niet intimideren: Remarks such as 'this is our final offer' are often a negotiating tactic, not a legal reality.

When is an employer willing to offer more?

An employee's negotiating position is stronger when there is doubt about whether the dismissal is legally sound. Think of situations where the employer finds it difficult to demonstrate that the grounds for dismissal are sufficient, or where the employer can themselves be held responsible for the way the conflict arose.

In such cases, the employer has an interest in avoiding proceedings before the subdistrict court. That gives you room to negotiate a higher payment or better terms. You can read more about your rights and approach in a conflict on the page Settlement agreement in a conflict situation: your rights and approach.

Common mistakes when negotiating

Many employees unwittingly leave money or rights on the table. Watch out for these pitfalls:

• Signing too quickly out of fear or uncertainty
• Failing to pay attention to the wording of the reason for termination being safe for unemployment benefit (WW) purposes
• Forgetting to negotiate the notice period as a notional period for unemployment benefit (WW)
• Agreeing without arranging the reference letter or release from work duties
• Not seeking legal advice when it is relatively inexpensive

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we know how negotiations about a settlement agreement work in practice. We assess your situation objectively, explain what is achievable, and support you throughout the process with your employer. That way you go into the negotiation well prepared and do not miss anything that matters to you.

Would you like to know whether you can get more out of the settlement agreement you have been offered? Feel free to contact us with no obligation. We are happy to think things through with you, even if you simply want to talk through your options.

Frequently asked questions

Am I allowed to refuse a settlement agreement?

Yes, you are never obliged to sign a settlement agreement. Refusing means the employer must follow a different dismissal route, such as the subdistrict court or the UWV. It is advisable to seek legal advice first about what refusing means for you.

How long do I have a cooling-off period after signing a Voluntary Settlement Agreement (VSO)?

After signing, you have fourteen days in which to dissolve the settlement agreement without giving any reason. This is provided for by law and always applies, even if it is not mentioned in the agreement.

Does my employer need a reason to propose a settlement agreement?

An employer does not need to prove a formal ground for dismissal in a settlement agreement, because it is based on mutual consent. Nevertheless, the underlying reason is relevant to your negotiating position and to the subsequent assessment of your unemployment benefit (WW) entitlement.

What if the employer says the offer is non-negotiable?

That is almost always a negotiating tactic. In practice, there is nearly always room for adjustment, particularly if you give well-reasoned grounds for why your counter-proposal is fair. An employment lawyer can help you with this.

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.