A Dutch settlement agreement (vaststellingsovereenkomst) must meet specific requirements. Professional review protects your rights and benefits.
A settlement agreement (vaststellingsovereenkomst) is a legally binding document that ends your employment by mutual consent. Unlike dismissal through court, this is a negotiated exit where both parties agree to the terms.
If you're from outside the Netherlands, note that Dutch settlement agreements have unique requirements - particularly regarding unemployment benefits (WW-uitkering). The agreement must be structured correctly, or you may lose benefit entitlements that would otherwise be available to you.
If you receive such a termination proposal, always have your settlement agreement reviewed.
Having your settlement agreement reviewed is not legally required, but strongly advisable. The document must meet specific requirements set by the UWV (Dutch Employee Insurance Agency) to preserve your unemployment benefit rights.
Errors or omissions in the agreement can result in delayed or denied benefits - consequences that are difficult to reverse after signing.
LegalBacking is happy to assist you with this.
Termination by mutual consent (beëindiging met wederzijds goedvinden) may be appropriate when the employment relationship is no longer working - for example, due to an employment conflict. If structured correctly, you may remain entitled to unemployment benefits (WW). However, the UWV assesses each case individually based on the agreement's terms.
It is your employer who proposes to terminate the employment relationship.
You and your employer agree on the dismissal and the financial settlement.
You should generally not be medically incapacitated on the end date. Situational incapacity (situatieve arbeidsongeschiktheid) requires careful handling - consult a professional.
A settlement agreement is essentially a termination proposal from your employer. The initial offer is a starting point - there is usually room to negotiate better terms.
Take your time to review the document carefully. You are not obligated to sign immediately, and it's advisable to have the agreement reviewed before responding.
Signing without proper review can jeopardize your unemployment benefits and other entitlements. The consequences are significant and often irreversible.
For your unemployment benefits to be approved, the settlement agreement must meet specific criteria assessed by the UWV (Dutch Employee Insurance Agency). The exact wording matters - the UWV examines the document closely. Three elements are essential:
The document must state that the initiative for dismissal came from the employer.
There must be no urgent reason for dismissal (such as summary dismissal).
You must not be "culpably unemployed" (verwijtbaar werkloos) - meaning you didn't cause or actively seek the termination through misconduct or resignation.
In some cases, agreeing to termination by mutual consent is not advisable. For example, when you are in the first two years of your sick leave.
A sick employee has dismissal protection. If you agree to the dismissal anyway, there is a risk that you may (temporarily) not be entitled to benefits.
So before having your settlement agreement reviewed, consult whether this is a good idea in your case.
Under Dutch law, you have a statutory reflection period (bedenktijd) after signing a settlement agreement. This is a protection that may not exist in your home country.
When you receive an agreement, you typically have several days to weeks to respond - there is no obligation to sign immediately.
Even after signing, you have 14 days to withdraw (or 21 days if the employer didn't mention this right in the agreement). After this period, the agreement becomes binding.
At LegalBacking, we stand 100% on the side of the employee. We review your settlement agreement on all important points and ensure your unemployment benefits are secure.
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