You have received a proposal from your employer to part ways ‘by mutual agreement’. This is often referred to as dismissal by mutual consent and is laid down in a settlement agreement (VSO). That sounds friendly, but legally it is a termination of your employment contract. The terms of that agreement determine whether you are entitled to unemployment benefits or compensation. Submit your VSO for review and take advantage of our free 1e initial consultation for non-binding advice.
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Fast forward to
- What does dismissal by mutual consent mean?
- Advantages of dismissal by mutual consent
- Entitlement to unemployment benefit in the event of dismissal by mutual consent: how does that work?
- Resignation by mutual consent during illness
- Get your VSO checked for free
- Together, we will get the most out of your mutual termination agreement.
- What else can I help you with?
- Frequently asked questions about dismissal by mutual agreement
What does dismissal by mutual consent mean?
Resignation by mutual consent means that you and your employer jointly decide to terminate the employment contract. This means that no dismissal procedure via the UWV or the subdistrict court is required. The agreements made are laid down in a settlement agreement (VSO). This includes the end date of your employment, severance pay, your exemption from work and agreements regarding, for example, holiday entitlement or a non-competition clause.
Although the term “mutual consent” suggests that both parties have equal influence, in practice this is often not the case. The initiative usually comes from the employer. It is therefore important to check whether the agreement meets the requirements of the UWV (Employee Insurance Agency), so that you retain your right to unemployment benefit.
Advantages of dismissal by mutual consent
- No lengthy dismissal procedure: You avoid lengthy dismissal proceedings; there is no need for intervention by the UWV or the court, which saves time, stress and uncertainty.
- Better conditions: You can negotiate better terms, such as higher compensation, a later end date, exemption from work or a positive reference.
- Entitlement to unemployment benefit: you retain, in the event of a correct
settlement agreement your right to unemployment benefits, provided that it is clear that the initiative lies with the employer and there is no urgent reason. - You decide: You decide whether to sign. Only after you have signed is your resignation final, which means you can first seek advice or have the agreement amended.
- Good relationship: The relationship with your employer usually remains good, because the dismissal takes place in consultation and not through a conflict or legal proceedings. This is beneficial if you still need references or wish to return to the same organisation.
Disadvantages of dismissal by mutual consent
- Uncertainty about unemployment benefits: If the settlement agreement does not meet the conditions set by the UWV, you may lose your right to unemployment benefits. Minor wording differences can make all the difference.
- No protection against dismissal: Because you yourself agree to the dismissal, formal protection against dismissal no longer applies. This means you cannot take legal action if the agreements turn out to be disappointing.
- No transition payment guaranteed: In the event of termination by mutual consent, the employer is not obliged to pay a transition allowance. You must arrange this yourself. negotiate or have it recorded in the VSO.
- Risk in case of illness: Are you (partially) ill? Then signing may have major consequences for your income and your entitlement to sickness benefit or WIA benefit. In that case, legal advice is absolutely essential.
Entitlement to unemployment benefit in the event of dismissal by mutual consent: how does that work?
Whether you are entitled to unemployment benefits after dismissal by mutual consent depends entirely on how the settlement agreement is worded. The UWV assesses not only whether you have signed a VSO, but above all what it contains. Three conditions are crucial in this regard:
1. Your employer initiates the dismissal |
2. There is no culpable conduct |
3. The correct notice period |
| The agreement must clearly state that the proposal to terminate the employment relationship comes from the employer and that you are merely agreeing to it. If it appears as though you are resigning, the UWV will consider this to be voluntary resignation, and then your entitlement to unemployment benefit will lapse. A small phrase such as “terminated by mutual agreement” can already raise doubts, so this point always deserves to be checked. | The UWV will not pay unemployment benefits if you have been dismissed due to culpable behaviour, such as theft, refusal to work or repeated poor performance. The VSO must therefore not contain any blame on your part. It must be formulated neutrally, for example:
“The employment contract shall be terminated by mutual agreement at the initiative of the employer.” |
The end date of your employment contract must correspond with the statutory or contractual notice period. If your employment is terminated too quickly, the UWV may designate that period as “own risk” and delay the start of your unemployment benefit. This will cause you to lose weeks of income unnecessarily. |
Resignation by mutual consent during illness
Are you sick Is your employer offering you a settlement agreement? If so, be extra cautious. During illness, dismissal by mutual consent is virtually never to your advantage. Your employer is not permitted to dismiss you unilaterally while you are incapacitated for work; this is protected by law. Nevertheless, some employers attempt to terminate the employment contract earlier by means of a VSO.
If you sign during illness, in many cases you will lose your right to continued payment of wages and your right to sickness benefit or WIA benefit. The UWV then regards signing a VSO as voluntarily cooperate with dismissal, which means that you are deemed to have agreed to the termination of your contract.
Only in specific situations, for example after two years of illness and with the consent of the company doctor, can termination by mutual consent be safe. Even then, the VSO must clearly state that:
- it initiative on the part of the employer lies;
- u are not culpably ill;
- the correct deadlines and fees have been applied.
In this situation, always consult a specialist solicitor. We will review your settlement agreement free of charge and advise you within 30 minutes whether it is wise to sign.
Get your VSO checked for free
Have you received a proposal from your employer for dismissal by mutual consent? Request a free VSO check and avoid unpleasant problems with your entitlement to unemployment benefit, sickness benefit or incapacity benefit.
Why is the first intake free?
The initial intake is free of charge, allowing you to have your settlement agreement in the event of termination by mutual consent assessed at no cost and to determine whether you are still entitled to unemployment benefits. Are further legal steps necessary? If so, we will structure the counterproposal in such a way that your employer covers the costs.
Dismissal by mutual consent? I am at your service
I am Robin Sieverdink, employment lawyer and founder of Transition fee calculator.co.uk. During my law studies, I saw first-hand how often employees in a dismissal situation are pressured to sign quickly, without knowing exactly what their rights are. That feeling of powerlessness is what motivates me to do things differently.
I believe that everyone is entitled to a fair and careful termination of their employment. That is why I take the time to really understand your situation, clearly explain what is legally correct, and personally guide you towards a settlement that does justice to your efforts.
In most cases, my assistance will cost you nothing, as the employer will cover the legal costs. With over 15 years of experience, I know exactly where there is room for improvement.
My strength
- I take the time to really listen to your story
- In 95% of the files, I am implementing a better redundancy scheme.
- During a free consultation you will immediately receive a clear and honest assessment of your options
- I discuss each step and clearly explain the consequences.
- I carefully safeguard your rights, such as maintaining your unemployment benefits and the payment of outstanding holiday entitlement.
- You will receive expert legal guidance from an experienced solicitor.
What else can I help you with?
Get severance pay calculated
Would you like to know which transition allowance What are your rights in the event of dismissal? Our legal experts will calculate this for you free of charge and in accordance with the statutory formula, so that you know exactly how much you can claim. This will prevent your employer from underpaying you.
Engage VSO lawyer
Are you unsure about your settlement agreement in the event of illness? Our lawyers We will carefully examine your situation, provide honest advice and, if necessary, take over the negotiations entirely.
Have draft DSO drawn up
With a well-founded draft proposal you can start negotiations with your employer from a strong position. Our solicitors will draw up a legally sound settlement agreement that will protect your interests from the outset.
Negotiating your VSO
Would you like better terms or higher compensation upon dismissal? Our solicitors will take care of it. negotiations for you and ensure that your interests are clearly presented. This allows you to get the most out of your settlement agreement.
VSO and severance pay
Gain a clear understanding of your rights in the event of dismissal and discover how to achieve the best outcome from your severance pay. With our practical advice, you will be well prepared for every conversation with your employer.
VSO in case of illness
Would you like to know what your rights are if you are dismissed during illness and how a settlement agreement works in such cases? On our page about settlement agreements during illness, you can read exactly what you need to pay attention to and how to achieve a fair settlement.
Frequently asked questions about dismissal by mutual agreement
Dismissal by mutual agreement means that you and your employer decide together to terminate the employment. The agreements are laid down in a settlement agreement (VSO). No proceedings at the UWV or court are therefore necessary.
Yes, you can, but only if the VSO meets the UWV's conditions. It must be clear that the initiative lies with the employer, that there is no urgent reason and that the correct notice period has been used. Therefore, always have your VSO checked before signing.
The employer is not legally obliged to pay a transition compensation in case of dismissal by mutual agreement, but you can negotiate it. Our lawyers will ensure that the amount and calculation of the compensation are correct and that your interests are properly recorded.
Yes, you can do so within 14 days of signing the settlement agreement. This is called the reflection period. Within that period, you can indicate your wish to cancel the agreement without giving any reason.
Then be extra careful. Signing during illness could mean losing your right to wages or sickness benefit. Always have the agreement legally reviewed before signing.
In many cases, yes, especially if you are exempt from work. Nevertheless, this should be fine-tuned as some employers impose conditions on this. We always discuss this during the first intake interview.
When dismissed by mutual agreement, your employment contract ends on an agreed date and your rights to wages and accrual of holidays lapse from that moment. You may then be entitled to unemployment benefit, provided the agreement meets the UWV conditions. The agreements on your compensation, work release and certificate are set out in the settlement agreement.
No, a separate letter of resignation is not necessary. The termination is recorded in the settlement agreement (VSO), which both parties sign. This document replaces the resignation letter and is the official proof of the agreements between you and your employer.