Has your employer put a settlement agreement (VSO) on the table, but are you unsure whether the proposal is reasonable? Then it is important to know that a VSO is almost always negotiable.
Many employees think the first offer is set in stone. In practice, we often see that there is room for improvement — sometimes considerable. In this article, we explain in detail how VSO negotiation works, what you can ask for and where the limits lie.
This article is part of our pillar: dismissal with a VSO .
Is a VSO always negotiable?
Yes, in most cases. An employer chooses a VSO because they want to avoid dismissal proceedings. That means the employer has an interest in your consent.
That is precisely what makes negotiation possible. The stronger your legal position, the greater the room for negotiation.
What can you negotiate in a VSO?
When negotiating a VSO, you can consider the following items:
- the amount of the severance payment;
- the end date of the employment;
- continued payment of salary;
- reimbursement of legal fees;
- release from work;
- non-compete or non-solicitation clauses;
- bonus, commission or overtime;
- the wording of the reason for dismissal (unemployment benefits).
Not everything is always achievable, but there is almost always something to gain.
What compensation can you claim?
There is no fixed rule for the amount of compensation under a settlement agreement. In practice, it is often aligned with:
- the statutory transition allowance;
- the number of years of service;
- the employer’s chances in legal proceedings;
- your age and position in the labor market.
With a weak ground for dismissal, compensation of several months’ salary can be realistic.
Practical example: higher compensation
An employee with ten years of service is offered one month’s salary. After negotiations, this is increased to six months’ salary, partly because the employer had compiled little documentation.
Lesson: the legal position determines the outcome.
Negotiating a settlement agreement and unemployment benefit security
A crucial part of negotiating is securing your right to unemployment benefits.
Among other things, it must be clear that:
- the initiative for dismissal lies with the employer;
- you are not to blame;
- the correct notice period is respected.
You can also read more about this in: dismissal with VSO .
Negotiating attorney’s fees
In many VSO’s, it is agreed that the employer reimburses (part of) the costs of legal assistance.
This is often easy to justify, because the employer also has an interest in proper handling.
What if the employer does not want to negotiate?
If the employer refuses to negotiate, that may mean that:
- the proposal is already relatively favorable;
- the employer is willing to start proceedings;
- the employer underestimates your position.
Even then, it is wise to map out your legal position clearly before you decide.
Step-by-step plan: negotiate a settlement agreement
- Never sign immediately.
- Have the settlement agreement legally reviewed.
- Determine your room for negotiation.
- Formulate specific counterproposals.
- Put agreements in writing.
Frequently asked questions about negotiating a settlement agreement
Can I always negotiate?
Yes, although the room for negotiation varies by situation.
What is a reasonable compensation?
That depends on your years of service and the grounds for dismissal.
Can negotiating harm my unemployment benefits?
No, provided the wording is correct.
Do I have to negotiate through a lawyer?
It is not mandatory, but strongly recommended.
What if I ask for too much?
Then the employer can withdraw the proposal, but that happens less often than you might think.
Negotiating a settlement agreement? Have it handled professionally.
Negotiating a settlement agreement requires a tailored approach. A small adjustment can make a difference of tens of thousands of euros.
