Dismissal with a VSO in the Netherlands: key points

Dismissal with a VSO (vaststellingsovereenkomst, settlement agreement) means that employer and employee mutually agree to end the employment contract. The conditions of this termination are recorded in one written agreement instead of going through UWV or court proceedings. When properly drafted, such an agreement can safeguard the employee’s rights to Dutch unemployment benefits (WW). This article explains how a VSO works in practice and how outplacement support can be integrated.

What is dismissal with a VSO under Dutch law?

Under Dutch labour law, a VSO is a mutual agreement to terminate the employment contract. It is often used as an alternative to dismissal via UWV (for economic or long-term sickness cases) or the subdistrict court (for personal grounds such as performance or disturbed relations). Both parties sign the agreement voluntarily and thereby accept the agreed end date and conditions.

Unlike a formal dismissal procedure, a VSO does not require prior approval from a public authority. This makes the process faster and more predictable, but it also means that the employee must be extra careful before signing. With a signature, you usually waive the right to start legal proceedings against the dismissal, except in very specific situations such as serious defects or coercion.

Because the agreement replaces a formal dismissal route, it should reflect the main elements of a lawful dismissal: a reasonable ground, respect for notice periods and a fair financial settlement. That is why many organisations combine a financial package with an outplacement programme, especially in reorganization contexts or when a function disappears.

• A VSO is a mutual termination agreement under Dutch law.
• No prior permission from UWV or court is needed.
• Signing usually means waiving legal challenges against the dismissal.
• The agreement should mirror the requirements of a lawful dismissal.
• Outplacement can be included as part of the overall arrangement.

WW (unemployment benefits) and dismissal with a VSO

For employees, the most sensitive aspect of a VSO is often the impact on Dutch unemployment benefits (WW). According to the Dutch Unemployment Insurance Act, you are only entitled to WW if you are involuntarily unemployed and not to blame for the termination. When assessing a VSO, UWV checks whether these conditions are met.

In practice, this means that the agreement should clearly state that the initiative for termination lies with the employer, not with the employee. It should also refer to a reasonable ground, such as reorganization, redundancy or a disturbed working relationship. Finally, the end date in the VSO must respect the fictitious notice period that UWV applies when determining the start date of your WW benefits.

If these elements are missing or poorly phrased, UWV may decide that you have effectively resigned or accepted an avoidable dismissal. This can lead to a sanction or waiting period before benefits start. That is why Dutch experts advise employees to have the wording of the VSO checked carefully, especially on points that relate to WW entitlement.

• UWV checks whether unemployment is involuntary and not your fault.
• The VSO should state that the initiative lies with the employer.
• A reasonable ground for dismissal must be documented.
• The fictitious notice period must be respected in the end date.
• Poor wording can lead to loss or delay of WW benefits.

Financial arrangements: transition payment and additional compensation

Under Dutch law, employees are often entitled to a statutory transition payment (transitievergoeding) when their contract ends at the initiative of the employer. The amount depends on gross monthly salary and years of service. In VSO negotiations, this statutory minimum is usually the baseline for the financial offer.

Besides the transition payment, parties can agree on additional compensation or specific facilities. Examples include extra months of salary, continued pension contributions for a limited period or payment of legal and coaching costs. In reorganization situations, such arrangements are often laid down in a social plan, which is then reflected in individual VSOs.

From a career perspective, it can be wise to look beyond pure cash. An outplacement budget or a clearly defined use of part of the transition payment for career support can significantly increase your chances of finding suitable new work. Many employees later indicate that professional guidance had more long-term value than a slightly higher one-off payment.

• The statutory transition payment is usually the financial baseline.
• Additional compensation can be negotiated on top of this amount.
• Social plans often standardise payments in reorganization cases.
• Non-financial benefits (e.g. pension, coaching) can be included.
• Investing part of the budget in outplacement can pay off in the long run.

The role of outplacement in a VSO context

Outplacement is structured support in finding new work after, or in anticipation of, dismissal. An outplacement programme typically includes personal coaching, reflection on skills and motives, labour market orientation and practical job search support. In Dutch practice, outplacement is frequently part of the package when dismissal is arranged via a VSO, especially in cases of reorganization or redundancy.

For employees, outplacement offers both emotional and practical support. Losing a job affects income, daily structure and self-confidence. A specialised coach helps you process this change and translate your experience into a realistic, future-oriented profile. This makes it easier to identify suitable roles and sectors, which is particularly valuable if you have worked for many years with the same employer.

Employers choose to include outplacement not only out of social responsibility, but also to ensure a respectful and constructive separation. A well-designed programme, as described in resources on what outplacement entails, supports employees in moving forward and reduces the risk of prolonged unemployment. It also sends a positive signal to remaining staff that the organisation takes care of people affected by change.

• Outplacement combines emotional support and practical job search guidance.
• Programmes are often funded by the employer as part of the VSO.
• Coaching helps translate experience into a realistic career direction.
• Outplacement can shorten unemployment duration and improve job match.
• Employers use it to ensure a respectful and socially responsible exit.

Negotiating a VSO: what to pay attention to

When you receive a draft VSO, you are not obliged to sign immediately. Dutch law gives employees a statutory reflection period (bedenktijd) after signing, but it is better to address important issues before your signature. That starts with a thorough reading of the text, focusing on end date, financial settlement, WW-related wording and any non-compete or relationship clauses.

Next, it is wise to seek independent advice. This may be from a lawyer, trade union or experienced career professional. They can assess whether the proposal is reasonable in light of your position, years of service and the circumstances of the dismissal. They can also help you formulate concrete counterproposals, for example regarding higher compensation or the inclusion of an outplacement programme.

In negotiations, it helps to be clear about your priorities: financial security for the coming months, protection of WW rights and practical support in finding new work. Referring to established practices, such as dismissal via a settlement agreement and the role of outplacement, can support your arguments. Many employers are open to adjusting the package if this leads to a smooth and respectful separation.

• Read the draft VSO carefully and list questions and concerns.
• Seek independent legal and career advice before signing.
• Check all elements that affect WW entitlement and compensation.
• Formulate clear counterproposals based on your priorities.
• Use the statutory reflection period if you have doubts afterwards.

Reorganization, VSO and outplacement: a typical Dutch scenario

Many VSOs in the Netherlands are linked to reorganizations. Organisations adjust their structure, reduce staff or relocate activities, leading to redundancy of certain positions. In such situations, employees may be offered a VSO that reflects the terms of a social plan. This plan often includes standard rules on transition payments, notice periods and outplacement support.

For employees, this creates a specific decision context. On the one hand, the VSO offers clarity and a defined package. On the other hand, it is important to check whether the proposal matches the social plan and whether there is room for individual arrangements. Outplacement is a recurring theme here, as described in articles on outplacement in case of dismissal, because it directly influences your prospects on the labour market.

In reorganization scenarios, many employees experience a mix of uncertainty and relief: uncertainty about the future, relief that there is a concrete arrangement. Outplacement can help transform that uncertainty into action. By mapping your skills, wishes and realistic options, you can use the period after dismissal to move towards work that fits better with your current life phase and ambitions.

• Reorganizations are a common context for using VSOs.
• Social plans standardise key financial and procedural elements.
• Employees should verify whether the VSO reflects the plan correctly.
• Outplacement is often an integral part of the social package.
• Good guidance can turn a forced change into a constructive career step.

Conclusion: combining legal security and career perspective

Dismissal with a VSO is a widely used instrument in Dutch labour practice. When carefully designed, it combines legal certainty for both parties with room to tailor the arrangement to the individual situation. For employees, the key themes are WW entitlement, fair financial compensation and the opportunity to move forward in their career.

Outplacement plays a crucial bridging role between the end of the current job and the start of something new. By integrating an outplacement programme into the VSO, the focus shifts from only closing a chapter to actively building the next one. Employees receive support in processing the change, rediscovering their strengths and navigating the labour market.

Ultimately, a balanced VSO is more than a legal document. It is an agreement about how both parties deal with the end of a working relationship and the transition to a new phase. When legal safeguards and professional career guidance go hand in hand, dismissal with a VSO can, despite its impact, become a starting point for sustainable and meaningful work elsewhere.