{"id":4446,"date":"2026-05-31T19:17:34","date_gmt":"2026-05-31T19:17:34","guid":{"rendered":"https:\/\/www.arbeidsjurist-eindhoven.nl\/?p=4446"},"modified":"2026-10-09T12:07:35","modified_gmt":"2026-10-09T12:07:35","slug":"settlement-agreement-or-termination-agreement","status":"publish","type":"post","link":"https:\/\/www.arbeidsjurist-eindhoven.nl\/en\/kennisbank\/verschil-vaststellingsovereenkomst-beeindigingsovereenkomst-arbeidsconflict\/","title":{"rendered":"Difference between a settlement agreement and a termination agreement in an employment dispute"},"content":{"rendered":"

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Settlement agreement and termination agreement: the difference<\/h2>\n

Bij een arbeidsconflict komen twee begrippen regelmatig voor: de settlement agreement<\/a><\/a> en de be\u00ebindigingsovereenkomst. Veel mensen gebruiken ze door elkaar, maar er zijn juridische verschillen die direct gevolgen kunnen hebben voor jouw positie. Weten wat je tekent, is daarom essentieel.<\/p>\n

Two terms, but what exactly do they mean?<\/h2>\n

In practice, both terms are often used interchangeably, and that is understandable. Nevertheless, there is a legal distinction worth knowing.<\/p>\n

What is a termination agreement?<\/h3>\n

A termination agreement is a broader term: it is any written arrangement in which you and your employer jointly decide to end the employment contract. The emphasis is on the ending of the employment itself. The agreement sets out when the contract ends, what the notice period is, and what payment you will receive.<\/p>\n

What is a settlement agreement?<\/h3>\n

A settlement agreement (VSO) is, in legal terms, a more specific agreement based on Article 7:900 of the Dutch Civil Code. In it, the parties record not only the end of the employment, but also all arrangements regarding uncertainties and points of dispute arising around that dismissal. Think of a conflict over outstanding wages, a dispute about a non-compete clause, or lack of clarity about the reason for leaving.<\/p>\n

In de volksmond noemt bijna iedereen beide documenten een ‘VSO’, maar formeel gezien bevat een vaststellingsovereenkomst dus altijd een element van het ‘vaststellen’ van betwiste punten.<\/p>\n

Why does it matter in an employment dispute?<\/h2>\n

In an employment dispute, there are usually several points on which the employer and employee disagree. It is precisely in such situations that choosing the correct legal form is important.<\/p>\n

A termination agreement that purely governs the end of the employment may leave room for later disputes about outstanding matters. A settlement agreement better closes off that risk, because all points of dispute are explicitly addressed and resolved.<\/p>\n

If you sign something that only governs the ending but fail to make arrangements regarding, for example, a bonus, travel expenses, or an outstanding wage dispute, you may find yourself facing unpleasant surprises at a later stage.<\/p>\n

Wat staat er standaard in zo’n overeenkomst bij conflict?<\/h2>\n

Whether it is formally called a VSO or a termination agreement, in an employment dispute the agreement must in any case cover the following matters:<\/p>\n