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Settlement Agreement in Dismissal in Utrecht

A settlement agreement (VSO) is an agreement between employer and employee to terminate an employment contract. Read more about the conditions, unemployment benefit security and legal assistance in Utrecht.

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Settlement Agreement in Dismissal in Utrecht

A settlement agreement (VSO) is a written agreement between employer and employee to terminate the employment contract by mutual consent.

Definition of a Settlement Agreement

A VSO sets out the conditions for the end of an employment contract without involvement of the UWV or district court.

Essential Elements of a VSO

  • Date of termination of the employment contract
  • Reason for termination (often at the employer's initiative)
  • [Severance pay](https://rechtshulpamsterdam.nl/encyclopedie/pro-rata-dertiende-maand)
  • Garden leave
  • Full and final settlement
  • Confidentiality clause

Right of Withdrawal

After signing the VSO, the employee has 14 days to reconsider and cancel the agreement. The employer must explicitly state this in the VSO.

Unemployment Benefit Security with a VSO

For preservation of unemployment benefit rights, the VSO must meet specific requirements:

  • The initiative for termination lies with the employer
  • The reason for termination is neutral
  • The (fictitious) notice period is observed

Advice for Employees

  1. Do not rush to sign, take sufficient time
  2. Have the agreement reviewed by an employment law attorney
  3. Try to negotiate the compensation
  4. Take the withdrawal period into account

Statutory basis: Article 7:670b Dutch Civil Code

Frequently Asked Questions about VSO in Utrecht

What are my rights as an employee in Utrecht?

You are entitled to a safe workplace, minimum wage, vacation days with pay, and protection against inequality or discrimination.

Can my employer dismiss me without reason?

No, dismissal often requires approval from the UWV and must be based on substantiated reasons. Prior warnings are usually necessary.

How many paid vacation days am I entitled to?

You are entitled to at least 20 paid vacation days per year, unless your employment contract states otherwise. These must be granted upon request.

What is a collective labour agreement and what does it mean for me?

A collective labour agreement (CLA) is a set of agreements between employers and trade unions on matters such as salary, working hours and employment conditions.

What should I know about sick leave?

In case of illness, you must immediately inform your employer. You are entitled to continued pay during the first two years of illness.

Local Information in Utrecht

For legal support, you can go to the Juridisch Loket Utrecht at Catharijnesingel 55. For cases that go to court, the District Court Midden-Nederland is located at Vrouwe Justitiaplein 1.

Frequently Asked Questions about Severance Pay and VSO

How high is the severance pay with a VSO?
The compensation depends on negotiations, but is often based on a formula such as 1/3 monthly salary per year of service. With a VSO, you can sometimes get a higher compensation, especially if the employer wants to act quickly. Consult a lawyer to determine an appropriate amount. Note the tax rules: in 2024, the first €89,000 is tax-free.

What if I withdraw the VSO within 14 days?
If you withdraw the agreement within 14 days after signing, it lapses and your employment contract remains in effect. Your employer may not draw any negative consequences from this. Ensure a written withdrawal (for example via email) and keep proof of dispatch. After withdrawal, the employer can initiate a dismissal procedure via UWV or the court.

Will I lose my unemployment benefit right by signing a VSO?
Not necessarily, but the VSO must meet strict conditions to be unemployment benefit secure. The initiative must lie with the employer, the reason for termination must be neutral (for example ‘business economic circumstances’), and the fictitious notice period must be complied with. Always have the agreement checked by the UWV or an attorney before signing.

Can my employer force me to sign a VSO?
No, coercion or misleading by the employer is not permitted and can invalidate the VSO. If you feel pressured, note what was said and seek legal advice immediately. You always have the right to review the VSO and the 14-day reflection period.

What if I do not find the terms of the VSO acceptable?
You can negotiate aspects such as the compensation, end date or garden leave. Submit a counterproposal with good arguments (for example your years of service or market value). A lawyer can help with a persuasive proposal. If the employer does not agree, you can refuse to sign and wait to see if an official dismissal follows.

Can I reject a VSO without dismissal risk?
Yes, you can reject a VSO without immediate risk of dismissal. The employer must then initiate a formal dismissal procedure via the UWV or the district court.