A settlement agreement (vaststellingsovereenkomst) for an international employee needs the same checks as any Dutch settlement, plus one more: the end date decides when your residence permit search period starts. If you hold a permit as a highly skilled migrant (kennismigrant), your residence, your partner’s permit and possibly your 30% ruling all depend on that one date.
You also have a statutory reflection period (bedenktermijn) of 14 days under Article 7:670b of the Dutch Civil Code (BW), or 3 weeks if the agreement does not mention it. This article focuses on the international angle. For the general rules, see our complete guide to the settlement agreement for employees.
Table of contents
Why is the end date so important for international employees?
For a highly skilled migrant, the IND search period of up to 3 months starts on the day the employment contract ends. Since 22 May 2026, it is up to 6 months if you have held the permit for two years or more.
A later end date gives you more time to find a new recognised sponsor while you are still employed. Garden leave can do the same, as long as your salary keeps meeting the IND salary criterion; for 2026 that is €5,942 gross per month from age 30 and €4,357 below 30, excluding holiday allowance. Your employer must report the end of employment to the IND, as a rule within 4 weeks. Read more about the permit itself in our article on the highly skilled migrant permit.
How do you make the agreement WW-proof?
State that your employer took the initiative and that you are not seriously at fault. UWV mentions both points as conditions for unemployment benefit (WW) after a settlement.
- Include the reason for the termination, for example a reorganisation or a disrupted working relationship.
- Confirm that there is no urgent reason (dringende reden) for summary dismissal.
- Respect the notice period. Under Article 7:672 BW the employer’s period is 1 to 4 months, depending on the length of employment. If the end date comes too early, UWV applies a fictitious notice period and your WW starts later.
- Confirm that you are not ill. UWV warns against signing while you are ill.
Keep in mind that under Article 3(3) of the Unemployment Insurance Act (WW), a foreign national without lawful residence is not treated as an employee. WW does not extend your IND search period.
What about the transition payment and fair compensation?
In a settlement, the statutory transition payment (transitievergoeding) under Article 7:673 BW is not owed automatically; you negotiate it. In practice, the statutory amount is often the starting point.
The transition payment is one third of a monthly salary per year of service. For 2026 the maximum is €102,000 gross, or one annual salary if that is higher. If the employer acted seriously culpably, a court can award fair compensation (billijke vergoeding) on top of it. That risk can be a reason to negotiate a higher amount. For an international employee, a relocation back home or a gap in residence can be relevant facts in that discussion, but there is no fixed extra amount for it.
Which clauses about non-competition and relocation should you check?
Check whether the non-compete or relationship clause stays in force after you leave. Under Article 7:653 BW, a non-compete clause in a fixed-term contract is only valid with a written justification of compelling business interests.
For international employees, a non-compete clause can block the new sponsor you need for your permit. Ask for the clause to be waived or limited in the settlement agreement. More on validity is in our article on non-compete clauses in 2026.
Also check repayment clauses for relocation costs and study costs. Since 1 August 2022, Article 7:611a BW forbids repayment of training the employer must offer by law or collective agreement. Relocation repayment depends on your contract, so agree in writing that no repayment is due.
What should the final payment include?
The final payment must include salary up to the end date, holiday allowance and the value of untaken leave days. Under Article 7:641 BW, statutory leave that you did not take must be paid out when employment ends.
- Holiday allowance (vakantiegeld) of at least 8% under Article 15 of the Minimum Wage Act (WML), built up to the end date.
- Untaken statutory and extra leave days, at the value in your contract.
- Pro rata bonus, 13th month or other agreed payments.
- Any expense or school allowances that run until the end date.
Ask for the payment date in the agreement. Ask your pension fund or insurer what happens to your accrued pension and whether you can transfer it; the agreement itself rarely changes your pension rights.
How does the 14-day reflection period work?
After signing, you can dissolve the settlement agreement within 14 days by a written statement, without giving reasons, under Article 7:670b BW. If the agreement does not mention this right, the period is 3 weeks.
The right applies once: if you sign a new settlement agreement within 6 months after using it, there is no new reflection period. For an international employee, the reflection period also means the employer may wait before reporting to the IND or processing the final payment. Agree in writing what happens in that period.
Which other terms should you negotiate?
Ask for a contribution to your legal fees, a positive reference and a mutual confidentiality clause. These cost the employer little but can matter when you apply with a new sponsor.
- Legal fee contribution: a fixed amount paid directly to your lawyer. See our page on lawyer fees in the Netherlands.
- Reference: an agreed text, or a commitment to give a positive reference to new employers.
- Confidentiality: mutual, and with an exception for advisers, authorities such as the IND and UWV, and your partner.
- Final discharge (finale kwijting): check that it does not cover payments that are still outstanding.
- Release from work: a written release with pay keeps your salary and permit position clear until the end date.
What should you check as an employee?
- Calculate your IND search period from the proposed end date and the expiry date on your permit card.
- Check that the end date respects your notice period under Article 7:672 BW.
- Check that the agreement states the employer’s initiative and that you are not seriously at fault.
- Check the transition payment against the 2026 maximum of €102,000 or one annual salary.
- Check whether the non-compete clause, relocation repayment or study costs clause is waived.
- Check that the final payment includes holiday allowance and untaken leave.
- Check the date until which your partner’s and children’s permits depend on yours.
What should you check as an employer?
- Mention the 14-day reflection period in the agreement to avoid the 3-week period.
- Report the end of employment to the IND, as a rule within 4 weeks, as a recognised sponsor.
- Pay salary at the criterion level during garden leave if you want the employee to keep permit status.
- Check whether the employee is ill before you propose a settlement.
- Keep the employee file until 5 years after you are no longer the sponsor.
What can we do for you with a settlement agreement as an international employee?
- Review the draft agreement against your employment rights and your residence position.
- Calculate the transition payment, notice period and IND search period for your dates.
- Negotiate the end date, garden leave and payments with your employer.
- Rewrite non-compete, relocation and study costs clauses.
- Coordinate with our immigration lawyers on a new sponsor or the position of your family.
Summary
- The end date starts your IND search period of up to 3 or 6 months, so negotiate it carefully.
- WW requires the employer’s initiative, no serious fault and a respected notice period.
- The transition payment is negotiable in a settlement; the 2026 maximum is €102,000 or one annual salary.
- Non-compete, relocation and study costs clauses can block your next step and can be waived.
- You can dissolve the agreement within 14 days, or 3 weeks if this right is not mentioned.
Frequently asked questions
Can I sign a settlement agreement in English?
Yes. Dutch law does not require a Dutch-language agreement, but make sure Dutch legal terms such as the reflection period are translated correctly.
Does garden leave protect my residence permit?
While the contract runs and your salary meets the IND criterion, you are still employed. The search period starts only when the contract ends.
Can my employer end the contract earlier than agreed if I find a new job?
Only if the agreement says so. Many agreements include an early exit clause; check how it affects your payment and your IND dates.
Is the transition payment taxed?
Yes, it is taxed as wages. Ask a tax adviser about your own situation, especially if you have the 30% ruling.
What if I change my mind after signing?
Send a written dissolution within the reflection period of 14 days, or 3 weeks if the agreement does not mention it, under Article 7:670b BW.
