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Settlement agreement: termination of employment contract by mutual consent

If your employer wishes to terminate your employment, he must obtain permission from the UWV or request dissolution from the subdistrict court. This is not necessary if you reach a joint agreement on termination of your employment. With such an agreement, you make agreements about termination, which are recorded in an agreement: the settlement agreement (VSO). What do you need to know about it?

Termination by mutual consent

You enter into a settlement agreement in the event of a so-called 'termination by mutual consent'. This may seem a bit strange, because you may not agree with the dismissal at all. For example, if you receive a proposal from your employer due to a reorganization, or if you come to the conclusion that continuation of your employment contract is not desirable for anyone - no matter how annoying you find that.

Influence through agreements

It has long been customary to terminate employment contracts through a settlement agreement. The method is accepted by the UWV and also offers you an advantage: your employer and you can make agreements under which conditions your employment contract will end. You can even negotiate about this. For example, a dismissal by mutual consent may be preferable from a practical point of view to proceedings via the UWV or the subdistrict court.

Record agreements made in writing

In order to prevent possible discussions in the future, you record all agreements in writing. Think of agreements about:

  • end date
  • taking or paying vacation days
  • amount of the (transition) compensation
  • final settlement
  • exemption from work
  • non-competition clause
  • issue of positive references
  • any bonuses
  • Other fees
  • secondary employment conditions, such as telephone or company car

The reason for terminating the employment contract is also important to record. This is how the UWV assesses whether you are eligible for unemployment benefits after your dismissal. In addition, it must be clear in the settlement agreement that your employer has taken the initiative, and that you are not responsible for this.

Final discharge

Final discharge is often included in the settlement agreement. This means that both parties have nothing more to claim from each other except what has been agreed in the settlement agreement. You must therefore be sure that you have not incurred any expenses that your employer still has to reimburse you. Conversely, you can think of a reimbursement scheme for study costs. So pay attention to this.

Get advice

It is always advisable to have a settlement agreement legally tested before signing. This way you can be sure that the agreements are correct and complete, and that there is nothing left to negotiate. You also ensure that you can use your agreement to apply for unemployment benefits.

Corona: more VSOs

Due to the corona virus and some government measures, many employers are in financial trouble. Some companies may have to reorganize in the near future, and De Unie is receiving signals that employees are already receiving a proposal to sign a settlement agreement. Our advice: don't sign anything and let us check the agreement first.

More information

Are you dealing with a dismissal or are you offered a settlement agreement? De Unie can you help! Please feel free to contact us, even if you are not a member. Our Service Center is available every working day from 8.00:18.00 am to XNUMX:XNUMX pm via sc@unie.nl and 0345 851 963.

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