Negotiating severance pay in a settlement agreement
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Detailed explanation, checklist and sources
The statutory transition payment is often an important starting point, but in a mutual termination parties can make different financial and practical arrangements.
General information about Dutch law · Review date not recorded · How we work
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First determine your legal position
Your negotiating scope depends, among other things, on the grounds for dismissal, the file, a possible prohibition on termination, redeployment and the risk that the employer will not obtain permission from UWV or the subdistrict court.
Look beyond the gross amount
Check the end date, exemption from work, holiday days, bonus, study costs, non-compete clause, legal costs and a neutral reference. A higher amount may be disadvantageous if other provisions are missing.
Protect your unemployment benefit position
The agreement must make clear that the initiative lies with the employer and that there is no urgent reason. The notional notice period and end date can also affect when unemployment benefits begin.
Your checklist
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Calculation of statutory transition payment
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Record what happened, when, the response and where to find the letter, message or photo. Mark uncertain dates.
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For each event, note the date, what happened and where the evidence is kept. Example: 3 October — letter received — correspondence folder.
Describe the solution you would like, such as an explanation of a deduction and repayment of the outstanding amount.
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After your conversation
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- Calculation of statutory transition payment
- Strength of grounds for dismissal and file
- Correct notice period and end date
- Outstanding salary components and holiday days
- Non-compete clause and study costs
- Contribution to legal advice costs
Frequently asked questions
Am I automatically entitled to more than the transition payment?
No. A higher payment is usually the result of negotiation and depends on your position and the interests of both parties.
Is only the net amount important?
No. The wording, end date and other arrangements may be financially more important than a small increase in the payment.