Offered a settlement agreement (vaststellingsovereenkomst)?
A settlement agreement ends your job by mutual consent. You do not have to sign it, and you can take advice first.
Check 3 things before you sign
- The WW wording. It says your employer took the initiative and that there is no urgent reason to dismiss you. UWV looks for this before it pays unemployment benefit (WW).
- The money. At least the statutory transition payment: one third of a monthly wage for each year of service.
- Your notice period. The end date respects it, or you are paid for it. If the end date comes too early, UWV pays no WW for the missing notice time.
Already signed? You can cancel in writing within 14 days of signing, without giving a reason. If the agreement does not mention that right, you have 3 weeks (21 days).
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Rules from the Civil Code, UWV, Rijksoverheid and business.gov.nl · Checked 30 September 2026
Short answer
You do not have to sign a settlement agreement (vaststellingsovereenkomst, VSO): without your written consent your employer needs UWV permission or a court. If you sign, you can still dissolve it within 14 days, or within 3 weeks if the agreement does not mention that right. Measure the offer against the statutory transition payment: one third of a monthly wage per year of service, capped at €102,000 in 2026. The wording and the end date decide whether you keep your WW benefit. Ask your employer to pay for a lawyer to review it.
Handed a settlement agreement and told to sign by a date?
Tell Finn what your employer offered and the date they gave you. We check whether a lawyer is worth it, prepare your case and introduce you to an independent employment lawyer who works in English. Most clients are introduced to a lawyer within one business day.
Key facts for 2026
- 14 days to dissolve a signed settlement agreement, in writing and without giving a reason.
- 3 weeks instead if the agreement does not mention that right.
- 6 months: sign a new agreement within 6 months of dissolving one and you cannot dissolve it again.
- 1/3 of a monthly wage per year of service is the statutory transition payment in 2026.
- €102,000 is the 2026 cap on the transition payment, or one year’s wage if that is higher.
- 26 of 36 weeks worked before you became unemployed is one of the conditions for WW.
- 8 clauses to check before you sign, from the end date to the final release.
- 3 months to find a new job on a highly skilled migrant permit, counted from the end date of your contract.
This is general information about Dutch law, not legal advice for your situation. Rules change; figures are for 2026. No rights can be derived from this text.
The basics
Settlement agreement Netherlands: do I have to sign?
No: under article 7:671 of the Dutch Civil Code, your employer cannot end your contract without your written consent, a UWV permit or a court decision, except during probation or for an urgent reason. A settlement agreement only exists if you agree to it. Many employees ask their employer to pay towards an employment lawyer to review the settlement agreement before they sign.
- Two names: a vaststellingsovereenkomst (VSO) or a termination agreement (UWV).
- Only in writing: an agreement that ends your contract is only valid if it is in writing (Civil Code, article 7:670b).
- Read it first: do not sign if you think the agreement is not right (Rijksoverheid).
- What decides its value: the 8 clauses below, from the end date to the final release.
Want a lawyer to read it before you sign?
Tell Finn what happened and when your employer wants an answer. We check whether a lawyer is worth it, prepare your case and introduce you to an independent employment lawyer who works in English. Most clients are introduced to a lawyer within one business day.
Withdrawal
How long can I change my mind after signing?
Under article 7:670b of the Dutch Civil Code, you can dissolve a signed settlement agreement within 14 days by a written statement to your employer, or within 3 weeks if the agreement does not mention that right. You do not have to give a reason.
- Only once: sign a new agreement within 6 months of dissolving one and the right does not apply again.
- Cannot be signed away: a clause that removes or limits the right is void.
| Your situation | Deadline to dissolve the agreement |
|---|---|
| The agreement mentions your right to dissolve it | 14 days after the agreement was made |
| The agreement does not mention it | 3 weeks after the agreement was made |
| You dissolved one and sign a new agreement within 6 months | No new right to dissolve it |
Civil Code, article 7:670b. Dissolve it by a written statement to your employer.
Money
How much should a settlement agreement pay in 2026?
Measure the offer against the statutory transition payment: under article 7:673 of the Civil Code that is one third of a monthly wage per year of service, capped at €102,000 in 2026 or one year’s wage if higher. The law does not require it when you agree to leave, so it only counts if the amount is written into the agreement (business.gov.nl).
“Your employee is entitled to one-third of their gross monthly wage per year worked. This is calculated from their first working day.”
From business.gov.nl: transition payment after dismissal, the Dutch government’s page for employers, checked 25 September 2026.
- What counts as the monthly wage: the gross monthly wage plus holiday allowance, overtime, shift allowances and bonuses (business.gov.nl).
- Your own figure: use our severance pay calculator, then negotiate from there.
| Years of service | Statutory transition payment |
|---|---|
| 1 year | €1,440 |
| 2 years | €2,880 |
| 5 years | €7,200 |
| 10 years | €14,400 |
| 15 years | €21,600 |
Illustration using the 2026 statutory formula for a gross monthly salary of €4,000 plus 8% holiday allowance: (€4,000 + 8% = €4,320) × 1/3 × years of service. Your figure depends on your salary components.
Not sure the offer is enough?
Tell Finn the amount, your salary and your years of service. An independent employment lawyer can check the offer before you sign. Most clients are introduced to a lawyer within one business day.
WW benefit
Will I still get unemployment benefit (WW) after a VSO?
UWV requires the agreement to say your employer proposed the dismissal and you did nothing wrong, and it starts WW only after your statutory notice period of 1 to 4 months. An agreement without that wording puts your WW at risk.
- Notice period: if the agreement gives no notice or too little, UWV uses the notice period you should have had, and you get no WW for that first period. See notice periods in the Netherlands.
- The other conditions: you lose 5 or more working hours a week, you are available for work, and you worked at least 26 of the 36 weeks before you became unemployed (Rijksoverheid).
- Not your own fault: you get no WW if you became unemployed through your own fault, and after resigning yourself only in exceptional cases.
- Before you leave: collect the information from your employer that you need for the WW application. See how to apply for WW and what it pays.
Checklist
Which clauses should I check before I sign?
Check the end date first: if it does not respect your statutory notice period of 1 to 4 months, UWV starts your WW that much later. Then go through the other 7 clauses in this table.
| Clause | What to look for | Why it matters |
|---|---|---|
| End date and working until then | Not earlier than your notice period allows; whether you keep working or are released from work until that date | An early end date delays your WW (UWV) |
| Who proposed it | Your employer took the initiative, you did nothing wrong, and there is no urgent reason for dismissal | UWV needs this wording to pay WW (UWV) |
| Final pay and holiday days | The holiday allowance built up and your unused holiday days are paid out | Both are owed when the contract ends (Minimum Wage and Holiday Allowance Act, business.gov.nl) |
| Transition payment or extra severance | The amount in euros, and when it is paid | It is not owed unless the agreement says so (business.gov.nl) |
| Non-compete clause | A written waiver | Otherwise the clause may still bind you (Civil Code, article 7:653) |
| Legal costs | A contribution to the lawyer who reviews the agreement | You get advice before you sign |
| Reference letter | Your employer gives one; how the contract ended only if you ask | You are entitled to it at the end (Civil Code, article 7:656) |
| Final release (finale kwijting) | Everything you are still owed is listed first | After it, neither side can claim anything more |
Only the rows marked with a source state a legal rule. The others are points to agree in writing.
A clause you don’t understand?
Tell Finn which clause worries you, such as the end date, the WW wording or the final release. We prepare your case and introduce you to an independent employment lawyer who works in English. Most clients are introduced to a lawyer within one business day.
Next steps
What should I do in the first 48 hours after receiving a VSO?
Do not sign in the meeting: article 7:670b of the Civil Code gives you 14 days to dissolve a signed agreement, but reading it before you sign costs nothing. Work through these steps first.
- Do not sign on the spot. Say you want to read the agreement and take advice.
- Ask for the draft in writing. Note the date you received it.
- Calculate your transition payment. Use the formula above or our severance pay calculator.
- Check the WW wording. Your employer’s initiative, no urgent reason, and an end date after your notice period.
- Get it reviewed. Ask an employment lawyer to read it, and ask your employer to contribute to the cost.
Illness
Should I sign a settlement agreement while I am sick?
During the first 2 years of illness your employer cannot give you notice under article 7:670 of the Civil Code, so you do not have to agree to leave. If you are still ill and unable to work when you sign, you will probably get no Ziektewet benefit (UWV).
- Advice first: UWV advises getting legal help before agreeing to leave while ill, and says an ending during illness usually means no benefit (UWV).
- More on illness: see our sick leave guide.
- After 2 years of illness: your employer may dismiss you, and then owes a transition payment for the whole period you were employed, including the time you were ill (business.gov.nl).
Permits
What changes if I’m on a highly skilled migrant permit or the 30% ruling?
On a highly skilled migrant permit, the IND’s job search period of up to 3 months starts on the day your contract ends, so the end date in the agreement starts the clock. It is up to 6 months if you have had the permit for 2 years or longer.
- Your permit sets the limit: the search period never runs past the end date of your permit.
- Plan the date: a later end date also moves the end of your search period. More in our guide to losing your job on a highly skilled migrant permit.
- The 30% ruling: it can continue with a new employer only if you start there within 3 months after your old job ended, and you apply within 4 months of starting (Belastingdienst). See our 30% ruling checker.
Off sick, or on a highly skilled migrant permit?
Both make the agreement riskier to sign without advice. Tell Finn your situation and the end date in the draft, and we introduce you to an independent employment lawyer who works in English. Most clients are introduced to a lawyer within one business day.
Pressure
What if my employer pushes me to sign quickly?
No law makes you sign a settlement agreement by a date your employer picks: your employer cannot end your contract just by handing you a document (Civil Code, article 7:671).
- “This offer ends on Friday”: the date is your employer’s choice, not a legal rule. The offer can be withdrawn, but you do not have to sign by then.
- “Bring a lawyer and the offer is off”: taking advice on a legal document is normal. Ask your employer to contribute to the cost.
- “Sign or you get nothing”: without your written consent your employer needs UWV permission or a court to end your contract.
- Only in Dutch? Ask for an English version or a translation before you sign. A spoken summary of a clause is not the clause.
- Keep your replies neutral: a written “yes, agreed” in a chat or an email can count. Until you decide, confirm that you received the agreement and say you are reviewing it.
- Insurance or a union: check whether you have legal expenses insurance or union membership. Either may pay for the review (UWV).
- Signed, and the 14 days or 3 weeks have passed? It is harder, but not always closed. What you are still owed can depend on how the final release is worded. Get advice quickly.
Decide
Sign or negotiate?
You do not have to accept the first version: without your written consent your employer needs UWV permission or a court to end your contract (Civil Code, article 7:671).
- Take your time: read it, ask questions and propose changes before you sign; after signing you still have 14 days to dissolve it.
- Compare: the severance on offer against the statutory transition payment, and the end date against your notice period.
- Just dismissed instead? Read what to do first.
Received a settlement agreement? Talk to an employment lawyer
Need help with this? We match you with an English-speaking Dutch employment lawyer. Most clients are introduced to a lawyer within one business day. Lawyer fees are paid to the firm and explained before you proceed.
Keep reading
Related guides
More on ending a job in the Netherlands.
Unemployment benefit (WW)
When you get WW after your job ends.
PaySeverance pay calculator
The statutory transition payment for your salary and years.
DismissalNotice periods
The notice your employer must respect.
ContractsNon-compete clauses
When a non-compete clause is valid.
LeaveSick leave
Pay and dismissal protection when you are ill.
NoticeGarden leave
Sent home until your end date: pay and rights.
PerformancePerformance improvement plan
Put on a PIP: what it must contain and what comes next.
EmploymentEmployment law hub
Every English guide for employees here.
Handed a settlement agreement and told to sign by a date?
Tell Finn what your employer offered and the date they gave you. We check whether a lawyer is worth it, prepare your case and introduce you to an independent employment lawyer who works in English. Most clients are introduced to a lawyer within one business day.
FAQ
Frequently asked questions
What is a settlement agreement in the Netherlands?
It is a written agreement in which you and your employer end your employment contract by mutual consent. In Dutch it is a vaststellingsovereenkomst, or VSO, and UWV also calls it a termination agreement. It only counts if it is in writing, and it usually sets the end date, any severance, the holiday payout and what happens to other clauses.
Can my employer force me to sign a settlement agreement?
No. Your employer cannot end a permanent contract without your written consent, unless UWV gives permission, a court dissolves it, you are in probation or there is an urgent reason. If you think the agreement is not right, do not sign it. You can take time, ask questions and propose changes before you agree to anything.
How long do I have to withdraw from a settlement agreement?
You can withdraw within 14 days after the agreement was made, by a written statement to your employer and without giving a reason. If the agreement does not mention this right, you have 3 weeks. The right does not apply again if you sign a new agreement within 6 months of withdrawing, and a clause that removes the right is void.
Do I keep my WW benefit after a settlement agreement?
Usually yes. The agreement must say that your employer proposed the end of the contract and that you did nothing wrong. WW only starts after your notice period; if the agreement gives no notice or too little, UWV applies the notice period you should have had and you get no WW for that first period.
Do I get a transition payment with a settlement agreement?
Not automatically. When you agree to leave, the law does not require your employer to pay the statutory transition payment, although the agreement can include a severance payment. So write the amount into the agreement before you sign, and compare it with the transition payment you would get if your employer dismissed you.
Should I sign a settlement agreement while I am sick?
Not without legal advice. If you are still ill and unable to work when you sign, you will probably get no Ziektewet benefit, and ending your job during illness usually means no benefit at all. During the first 2 years of illness your employer cannot simply give you notice, so you are not forced to agree.
Does a settlement agreement end my non-compete clause?
Only if the agreement says so, so ask your employer to waive it in writing. A non-compete clause is only valid if it was agreed in writing with an adult employee, and in a fixed-term contract only with written reasons. A court can annul all or part of it if it unfairly disadvantages you.
What happens to my highly skilled migrant permit after a settlement agreement?
Your job search period begins on the day your contract ends, so the end date in the agreement starts the clock. You then have up to 3 months to find a new job, or up to 6 months if you have had the permit for 2 years or longer, but never beyond the end of your residence permit.
Want a lawyer to read it before you sign?
Tell Finn what happened and when your employer wants an answer. We check whether a lawyer is worth it, prepare your case and introduce you to an independent employment lawyer who works in English. Most clients are introduced to a lawyer within one business day.
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Official sources, checked 30 September 2026
- Burgerlijk Wetboek Book 7, articles 7:653, 7:656, 7:670, 7:670b and 7:671 (in Dutch)
- UWV: dismissal during illness (in Dutch)
- Rijksoverheid: when does my employment contract end? (in Dutch)
- Business.gov.nl: transition payment after dismissal
- UWV: WW benefit after dismissal (in Dutch)
- UWV: model termination agreement (in Dutch, Word file)
- Rijksoverheid: when do I have a right to WW benefit? (in Dutch)
- Wet minimumloon en minimumvakantiebijslag, article 17 (in Dutch)
- Business.gov.nl: holiday entitlement
- IND brochure 3072: residence permit for work as a highly skilled migrant
- Belastingdienst: the 30% ruling when you come to work in the Netherlands (in Dutch)
Final notes and legal disclaimer
- This article provides general information and is not tailored to your personal circumstances.
- It does not cover all situations, exceptions, or recent legal changes.
- Reading this article does not create a lawyer-client relationship with findlawyer.nl or any associated entity.
- No guarantee is given that this information is complete, accurate, or up to date.
- No rights can be derived from this article.
- For decisions about your settlement agreement or dismissal, or your specific situation, always consult a qualified professional.
FindLawyer is a lawyer-matching and case-preparation service, not a law firm. Legal advice comes from the partner lawyer.