When an employer does not want to cooperate with a settlement agreement, it can be a pose profound problems for workers seeking settlement at the termination of their employment.

A settlement agreement is a legal document that sets out the terms of dismissal determines by mutual consent, intended to avoid industrial disputes or long avoid dismissal procedures.

The purpose of a VSO is to end the employment relationship neatly and clearly, with benefits such as a severance pay and maintaining entitlement to unemployment benefits paramount. Employees should therefore know how to act if their employer not cooperating.

Why an employer can refuse to cooperate with a VSO

When an employer does not want to cooperate in a settlement agreement, there are several factors that can influence this decision. Below are some important aspects that may explain why an employer may be reluctant to enter into such an agreement.

Legal obligations

There is no legal obligation for employers to provide a settlement agreement to offer. This gives employers the freedom to decide whether they want to negotiating a VSO.

Own-risk carrier

The costs associated with the dismissal process, including payouts of the WW benefit and administrative burdens, may discourage an employer from enter into a VSO. Indeed, there is little benefit for employer to enter into a VSO close.

Influence of company policy

Company policies can play a big role in how dismissal procedures are handled. Strict policies around dismissals can limit the flexibility to allow negotiated separations such as a VSO, especially if this could complicate future personnel matters.

What does this mean for your WW?

In the Netherlands, there are employers who self-finance their employees' unemployment benefits (WW). These employers are often reluctant to pay an
support settlement agreement, as they thereby lead the employee to a situation where they have to pay for unemployment themselves. The employer is then an own-risk carrier (ERD), often these are government agencies. Alternatively, these employers may propose an outplacement budget, or an agreement with no right to WW but with opportunities for the employee to find other seek employment, while maintaining income such as, for example, a mobility route where the employee joins another organisation temporarily (6 months or more). This organisation will guide the employee to find other work.

Negotiating your settlement agreement

At the negotiating a settlement agreement (VSO) are some key tactics of interest:

● Maintain patience: do not initiate a counterproposal immediately; waiting for the employer's initiative can be advantageous.

● Resist pressure: signing quickly under pressure can lead to less favourable terms.

● Realistic proposals: high demands can hamper negotiations, while reasonable proposals are more likely.

● Awareness of consequences: understand the possible legal and emotional consequences if no agreement is reached.

● Stay or walk away: indicating a willingness to stay employed can give bargaining power; walking away can also be done if the terms are not favourable.

Do you have questions about the calculation of your severance pay? Or would you like more information on the subdistrict court formula? Contact us via WhatsApp, call 085 080 5482 or send an email; our employment lawyer will be happy to help you. And provide the answers to all your questions. Get your vso free check!