Received a Settlement Agreement? Follow These 15 Do’s and Don’ts
Has your employer offered you a settlement agreement, or are you expecting one soon? Before signing anything, it’s crucial to know your rights and responsibilities. These 15 essential tips will help you avoid common pitfalls and secure the best possible outcome.
1. Always request a written agreement
Employers often announce settlement agreements verbally. Always ask for the written terms to review them carefully at home or with legal counsel.
2. Don’t sign immediately
Never sign on the spot. Take time to understand the terms and consult an expert if needed.
3. Ensure you remain eligible for unemployment benefits
If you don’t have another job lined up, it’s vital that the agreement is “WW-proof” (compliant with Dutch unemployment benefits rules).
4. Check the termination date
Verify that the end date reflects the correct notice period based on your years of service. These typically range from 1 to 4 months but may differ based on your contract or collective labour agreement (CAO).
5. Assess the severance offer
A transition payment is standard, but you may be entitled to more. Be realistic — unreasonable demands can hinder negotiations.
6. Remove any non-compete or non-solicitation clauses
Try to agree with your employer to waive any clauses that limit your ability to find a new job.
7. Ask for a positive reference and testimonial
These can be valuable assets in your job search.
8. Negotiate the initial offer
The first version of the agreement is often negotiable. Consider discussing the severance amount, release from work, unused vacation pay, or support for job transition.
9. Are you currently sick? Do not agree without legal advice
Signing while on sick leave can jeopardise your right to unemployment or sickness benefits.
10. Avoid future issues with legal review
Employers may impose short deadlines to pressure you into signing. Don’t rush — have the agreement reviewed by a legal professional to avoid complications later.
11. Know your reflection period
You have at least 14 days to reconsider the agreement after signing. If this term is not included, you have 3 weeks to withdraw.
12. Settle your unused vacation days
Ensure these are paid out or taken before the contract ends.
13. Don’t forget about training costs
If you recently followed a course paid by your employer, clarify whether you must repay any costs and negotiate this if needed.
14. Request job search support
Consider negotiating an outplacement program or training budget to boost your job prospects.
15. Understand the tax implications
Be aware of the tax consequences of your severance and any other payments. This helps avoid surprises in your tax return.
Conclusion
Receiving a settlement agreement can feel overwhelming, but following these 15 steps puts you in a stronger position. Review the terms carefully, get legal advice if needed, and negotiate where appropriate. Protect your rights and aim for fair, future-proof conditions.
This blog was written by Mr. Stijn Blom
Employment law attorney at expatlawyer.nl B.V. Stijn has extensive experience in employment law and supports entrepreneurs on a daily basis with a wide range of employment law issues. From dismissal cases to drafting watertight agreements and regulations – with his practical and personal approach, he helps employers and employees move forward. Want to know more? Visit Stijn’s page.
Expatlawyer.nl is happy to think along with you if you have questions about the topic of your settlement agreement? Feel free to get in touch.
June 2025
