Exemption from work in settlement agreement: what does it mean for the employee in the Netherlands?

Vrijstelling van werk bij een VSO: wat betekent dat?

Een vrijstelling van werk bij een VSO betekent dat je tot het einde van je dienstverband niet meer hoeft te werken. We leggen uit wat dit voor jou als werknemer betekent.

settlement agreement

When an employer and an employee decide to employment contract to end, often a settlement agreement (VSO) has been drawn up. A crucial part of this agreement may be the release from work. But what does this entail exactly? In this blog, we will explain what release from work means in a settlement agreement and what you should pay attention to as an employee.

What is a settlement agreement?

A settlement agreement, also known as a termination agreement, is a legal document in which the employer and employee mutually agree on the terms for ending the employment contract. This usually happens without the involvement of a judge. Important components of the mutual termination agreement include the end date of employment, any redundancy pay, and agreements regarding the notice period.

What does exemption from work mean?

Exemption from work means that after signing the settlement agreement, the employee no longer must work, while continuing to be paid wages until the official end date of the employment contract. This can take effect immediately after signing the VSO or later, depending on the agreements made.

Advantages of exemption from work

1. More time to find a new job: being on garden leave gives employees the opportunity to focus fully on their job search without work commitments.
2. Financial security: even though the employee is no longer working, their salary continues. This provides financial stability during the transition period.
3. More rest: no longer having to work can reduce stress, especially if the work environment was perceived as burdensome.

What should you look out for when having garden leave?

When entering into a work release settlement agreement, it is essential to be aware of the terms. Pay attention to the following:

1. Duration of the exemption: Make sure it is clear how long the exemption applies and the exact end date of the employment agreement.
2. Salary and benefits: Check whether the full salary will continue to be paid and whether arrangements have been made for vacation days, bonuses and other fringe benefits.
3. Non-competition and non-solicitation clauses: If there is a non-competition or non-solicitation clause in the contract, it may limit your ability to find a new job quickly. Discuss whether these clauses can be relaxed or eliminated.
4. Job search requirement: In some cases, the VSO agrees that the employee must actively apply for a job during the exemption period. Make sure the terms are clear.

Getting your settlement agreement checked?

Exemption from work under a settlement agreement can have advantages, such as extra time and space to apply for jobs, but it can also have disadvantages, such as the loss of networking opportunities and a greater distance from the work field. It is crucial that employees carefully read and consider the terms of the VSO. If necessary, we can provide you with legal advice to ensure that the agreements made are reasonable! Please contact us for this.

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  At Arbeidsjurist Eindhoven the person behind the case comes first, with personal attention to your wishes.
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  Expert employment lawyers who get the most out of every case.
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  Transparent about costs. Often for a fixed fee.

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.