Settlement Agreement Lawyer
Netherlands
Last updated: 14 August 2026 by Michelle Marjanovic, Employment Lawyer, Law & More
Quick Answer: A settlement agreement (vaststellingsovereenkomst) is a mutual termination agreement between an employer and employee in the Netherlands. Before signing, an employee is entitled to independent legal advice, usually paid for by the employer, to check the transition payment, notice period and other terms. Law & More’s employment lawyers review and negotiate settlement agreements in the Netherlands, normally within one working day.
What Is a Settlement Agreement (Vaststellingsovereenkomst)?
A settlement agreement is a written agreement in which an employer and an employee agree to end the employment relationship by mutual consent, instead of going through a UWV or subdistrict court dismissal procedure. It records the terms of the termination, including the end date, financial compensation and other conditions. Because a settlement agreement affects your income, your notice period and your right to unemployment benefit, it should always be checked by an employment lawyer before you sign it.
What Should You Check Before Signing?
- Transition payment (transitievergoeding): the statutory severance payment you are entitled to, capped at €102,000 gross in 2026 (or one annual salary if higher), and whether the amount offered matches or improves on the legal minimum.
- Notice period: whether the agreed end date respects the statutory notice period, since an incorrect notice period can affect your unemployment benefit.
- Non-compete and non-solicitation clauses: whether existing clauses remain in force, are limited, or are cancelled.
- Garden leave (vrijstelling van werk): whether you are released from your work duties until the end date, and how this is arranged.
- Confidentiality and reference: agreements about what may be communicated to future employers.
- Reflection period: as an employee you have a statutory right to a 14-day cooling-off period after signing, during which you may withdraw from the agreement in writing without giving a reason.
Settlement Agreement and Unemployment Benefit (WW)
Signing a correctly drafted settlement agreement does not in itself disqualify you from unemployment benefit (WW) through the UWV. However, the UWV can partially or fully refuse benefit if, for example, the agreement records an urgent cause for dismissal, the termination was initiated by the employee, or the statutory notice period was not respected. This is one of the main reasons to have the wording checked before signing.
Who Pays the Legal Costs?
In most cases, the employer pays for or contributes towards the costs of independent legal advice on a settlement agreement, since Dutch case law and many settlement agreements themselves provide for this. Employers commonly include a fixed contribution, often in the region of €1,000 to €2,500, though this varies per case. Law & More will tell you in advance what a review or negotiation is likely to cost and, where possible, arrange for these costs to be covered by your employer.
How Law & More Can Help
Our employment lawyers review settlement agreements for both employees and employers, check whether the terms are fair and legally sound, and negotiate improvements where needed, such as a higher transition payment, a longer garden leave period or the removal of a non-compete clause. We aim to respond within one working day, given the statutory 14-day reflection period involved.
Frequently Asked Questions
Is my employer obliged to offer a settlement agreement?
No. An employer may also start a dismissal procedure via the UWV or the subdistrict court. A settlement agreement is a voluntary alternative that both parties need to agree to.
Can I negotiate the terms of a settlement agreement?
Yes. A settlement agreement is a proposal, not a final decision. Employees can and often do negotiate better terms, such as a higher payment or a longer garden leave period, before signing.
What happens if I don't sign?
If you do not sign, your employment continues and your employer will need to follow a formal dismissal procedure through the UWV or the subdistrict court if it still wants to end the employment relationship.
How long do I have to decide?
There is no fixed period to decide before signing, but once you have signed you have a statutory right to withdraw within 14 days, in writing, without giving a reason.
Will a settlement agreement affect my reference or my chances with a new employer?
A well-drafted settlement agreement usually states that the employer will provide a neutral or positive reference and that the termination was not due to poor performance or misconduct. This wording should always be checked before signing, since it can matter for a new job or a mortgage application.
Ready to Have Your Settlement Agreement Checked?
Contact Law & More for a free introductory consultation.
+31 40 369 06 80
