Settlement agreement

When you are made redundant, there is often a lot on your mind. Are you offered a settlement agreement? If so, it is usually the result of dismissal by mutual consent. This agreement contains all the arrangements surrounding your departure, such as the reason for dismissal and the notice period. Because a VSO can have consequences for your entitlement to unemployment benefit, for example, it is important that you know exactly what it contains. We will be happy to tell you everything you need to know and offer a free check by our lawyer. Do you submit your VSO before 17:30? Then you will receive an opinion within 30 minutes.

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Dismissal is unpleasant enough; let an expert help you so you get the best possible deal with your boss

What is a settlement agreement (VSO)?

A settlement agreement, or a termination agreement, is drawn up if your employer wants to terminate and dissolve the employment contract with you. This agreement can also be an option if he wants to terminate the current temporary contract early. This form of resign is done by mutual agreement, without the intervention of the UWV Whether the cantonal court. The agreement contains all the agreements made during this process. Think about the end date of your employment, the notice period, the reason for leaving and whether you are entitled to a fee.

While a VSO may look orderly at first glance, it is important to know that any agreement can have legal consequences. For example, a small mistake or unclear wording could affect your entitlement to unemployment benefits. It is therefore wise to check the agreement carefully before signing it.

Benefits of settlement agreement

✔ You avoid lengthy proceedings through the UWV or the courts.

✔ You influence the content of the appointments.

✔ There is room to negotiate severance pay.

✔ You can agree on the end date and notice period.

✔ The agreement provides clarity for both parties.

✔ With a properly drafted VSO, you retain the right to unemployment benefits.

✔ You have a standard 14-day reflection period after signing.

✔ In many cases, the employer reimburses (part of) the cost of legal advice.

Disadvantages of a settlement agreement

✖ Without proper scrutiny, agreements can turn out unfavourably for you

✖ If there is an error in the wording, you may miss out on your right to WW benefits

✖ Pressure to sign quickly may come at the expense of a fair settlement

✖ You must take active action yourself to protect your interests. We are happy to help you do that.

✖ Without proper scrutiny, agreements can turn out unfavourably for you

✖ If you are ill, a settlement agreement is almost never wise. You have dismissal protection and may lose your right to unemployment benefit if you sign it.

When will you get a settlement agreement?

A settlement agreement is usually offered if your employer wants to terminate your employment without the intervention of the UWV or the court. This often happens in reorganisations, a difference of opinion, a disturbed working relationship or when you decide to part company together. The employer then draws up a proposal in which agreements on the dismissal are laid down. Although such a proposal may seem friendly at first glance, it is important to know that, as an employee, you are never obliged to agree to it. You may also make or refuse a counter-offer. Take the time to review the document carefully or have it reviewed by a lawyer. This will ensure that your rights are well established.

How does a dismissal settlement agreement work?

In case of dismissal by mutual consent, the employer usually draws up a settlement agreement. This contains all agreements on the end of the employment, such as the last working day, the notice period, any compensation and entitlement to unemployment benefits. After you receive the proposal, you can go through it calmly and, if necessary, negotiate about its content. Only when both parties agree will the agreement be signed. From then on, a legal cooling-off period of 14 days applies. It is important that the agreement is legally correct, otherwise it may have consequences for your unemployment rights, for example. Therefore, always have the content checked by a lawyer before signing.

What does a settlement agreement contain?

You have agreed, after mutually agreeing to terminate the employment contract, to draw up a settlement agreement. What does this look like and what information should it contain? We list them for you:

  • Name and address employee.
  • Name and address of employer.
  • That the initiative for dismissal came from the employer and not the employee.
  • That there are no grounds for summary dismissal.
  • That this is a termination by mutual consent.
  • The termination date, i.e. the end date of the employment contract (respecting correct notice periods).
  • The height of the severance or transitional allowance; this amount you determine together.
  • Payment of all outstanding holiday entitlements (holiday days, leave).
  • Final settlement (including settlement of any thirteenth month), so that no amount is outstanding after this.
  • Possible exemption from work and agreements on transfer of work.
  • Place and date of signing settlement agreement.
  • Employee has two weeks reflection period after the settlement agreement is drawn up. If the agreement does not state this, the reflection period is three weeks.

In addition to these elements, you can make agreements on non-competition and non-solicitation clauses and confidentiality agreements. Be sure to include legal costs in the settlement agreement as well, so that the employer pays the costs you have to incur for advice on the settlement agreement. You do not deal with these types of issues on a daily basis, so engage an employment lawyer to represent your interests.

What is the notice period for a VSO?

In a settlement agreement, you and your employer agree when the employment will end. No statutory notice period applies in this case, but it is important that the agreed term is in line with the statutory notice period your employer should normally observe. If you do not, you risk the UWV rejecting your WW application (temporarily) because you left your job "too soon". A proper notice period is therefore not only a formal agreement, but also decisive for maintaining your benefit entitlement. In doubt about whether the term in your agreement is correct? Then have a lawyer look over it with you before you sign.

What about severance pay in the case of a VSO?

When dismissed via a settlement agreement, in most cases you are entitled to a transition allowance. This allowance is intended to financially cushion the transition to another job. In a VSO, the amount is usually included as part of the agreements. Pay close attention to whether the amount is correct and set according to the legal calculation. Sometimes an employer tries to come up with a lower amount than you are entitled to. Therefore, always have the amount of the compensation checked to make sure you get what you deserve.

Our lawyers are happy to check free for you, so submit your request today!

The cooling-off period in a settlement agreement

Have you already signed the settlement agreement? Then you still have 14 days of reflection time to reverse your decision. This statutory cooling-off period applies to any employee who signs a VSO. You do not have to give a reason and you do not have to ask the employer's permission. All you have to do is let it be known in writing that you are waiving the agreement. Is the cooling-off period not mentioned in the agreement? Then it is automatically extended to 21 days.

Free VSO check-up

Get your settlement agreement free check by an experienced lawyer. Submit your request before 17:30 and you will receive personalised advice within 30 minutes.

Get severance pay calculated

Discover quickly and free to which you are entitled. Our lawyers will calculate your transitional compensation according to the legal rules, so you do not miss out on anything.

Engage VSO lawyer

Avoid mistakes in your VSO that could have major consequences. Engage our lawyers and get professional help In reviewing, negotiating and drafting your VSO.

Have draft DSO drawn up

Get a legally watertight draft proposal drafted by an experienced lawyer. This way, you will start the conversation with your employer well prepared and in your favour.

Negotiating your VSO

Do you want higher compensation or better terms? Our lawyers negotiate on your behalf and ensure a deal that is truly in your best interests.

VSO and severance pay

Find out what you are entitled to upon dismissal and how to make the most of your severance pay retrieves. Includes tips for a strong negotiating position.

VSO, UWV and unemployment benefit

A mistake in your VSO may affect your WW entitlement. Read how to avoid this and what the UWV pays attention to when you apply.

Bring your employment to a successful conclusion with our help

Have you been dismissed and does your employer want to formalise the dismissal in a settlement agreement? Do not make hasty decisions and enlist the help of a specialised employment lawyer. We will check your settlement agreement free of charge, give honest advice and actively think along with you about your options. With over ten years of experience and thousands of audited agreements, we know at Transition fee calculator.co.uk exactly what to look out for. Together, we will bring your employment to an end carefully and by mutual agreement. Request a free check or contact us at +(31) 085-08 054 82 or info@legalworx.nl.

Mr. Robin Sieverdink

Senior employment lawyer

+(31) 085-08 054 82

info@legalworx.nl

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Dennis

After 2 years of sickness, I ended up in the WIA. Despite good contact with my employer, the settlement agreement felt a bit sloppy and rushed. I got in touch with Robin from LegalWorx via via and he helped me very quickly and competently. And indeed he discovered some inaccuracies in it. He also took the time and effort to answer my other questions or advise me. In the end, I signed the VSO with good feelings.

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Mr Bos

Due to a difference of opinion with the employer , regarding a VSO, I came across LegalWorx via Google. Even during our first telephone conversation, I knew I had found the right man. Robin is incredibly decisive, skilled and professional. After discussing the VSO, he immediately went to work for me, with the result that an amended version could be sent to the employer the very next day. I found the way he communicated to me incredibly pleasant. His explanations were clear, straightforward and he can be reached at any time of the day! Thanks to Robin, I got a great deal! I would like to thank you once again for your help. I will definitely recommend LegalWorx to people who need professional legal help. ⭐⭐⭐⭐⭐

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I really liked how quickly you responded to my request for verification of the VSO. On the phone, we discussed my situation and then you took action towards my employer very quickly.

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Frequently asked questions about the settlement agreement

A settlement agreement is a written agreement between employee and employer to terminate employment by mutual consent. It sets out the last working day, any compensation and agreements on the notice period, among other things.

Yes, provided the settlement agreement is drafted correctly. The reason for dismissal must be neutral and the correct notice period must be observed, otherwise the UWV may reject your WW claim.

If you have been ill for less than two years, it is often unwise to sign a settlement agreement. As soon as you sign, your employment contract ends and salary payment stops. You will then usually not be entitled to sickness benefit, and applying for WW benefit can also become difficult. To be entitled to WW, you must be immediately available for suitable work, which is difficult if you are still ill. Therefore, always get proper advice before agreeing to a VSO when you are ill.

A settlement agreement often offers more scope to agree on, for example, compensation or the end date. Dismissal via the UWV follows a stricter process, but offers more certainty about your WW entitlement. Therefore, get proper advice on what is best in your situation.

No, a transition allowance is not tax-free. The compensation is considered income and you have to pay payroll tax and contributions on it.

Yes, you can. Although the statutory transitional compensation is a minimum, a settlement agreement often allows you to negotiate a higher compensation or additional agreements.

Upon dismissal, relations in the workplace are often no longer optimal. Sometimes the situation runs so high that an employer chooses to release the employee from work even before the official termination date. Are you offered a settlement agreement? If so, you can agree on a work release, also known as garden leave, during the negotiations.

Yes, you can. Sometimes the settlement agreement includes a non-competition or non-solicitation clause. Always check carefully whether this clause is reasonable and get advice on this before agreeing.

 

Yes, an employer is not obliged to offer or agree to a settlement agreement. Sometimes financial reasons come into play, such as a desire to save costs. In other cases, an employer deliberately chooses to dismiss through the UWV or the subdistrict court. Policy can also play a role: employers often want to avoid a settlement with one employee leading to expectations from others.