When an employer and employee decide to end the employment relationship, this can be done through dismissal by mutual consent. This almost always involves a settlement agreement (VSO). The advantage is that both parties negotiate terms in good faith, without the need for a court or the UWV to intervene.
But how exactly does dismissal by mutual consent work, what are the advantages and pitfalls, and what should you look out for before signing?
What is dismissal by mutual consent?
Dismissal by mutual consent means that the employer and employee jointly agree to terminate the employment contract. This is recorded in writing in a settlement agreement.
It is voluntary: neither party is obliged to agree.
How does it work in practice?
Employer's proposal
The employer draws up a settlement agreement containing the terms of termination.Negotiation
As an employee, you can discuss and adjust the terms, for example the severance payment or end date.Signing
Both parties sign the agreement.Cooling-off period
The employee always has 14 days to reconsider and withdraw from the agreement.
Advantages of dismissal by mutual consent
Quick resolution without proceedings at the UWV or court.
More room for negotiation (for example, a higher severance payment or release from work duties).
Unemployment benefits are preserved, provided the VSO is correctly drafted.
Less stress than a lengthy legal procedure.
Risks and pitfalls
Accepting a severance payment that is too low.
An incorrect end date causing you to lose unemployment benefits.
Including a negative reason for dismissal ("underperformance") which puts your unemployment benefits at risk.
Forgetting to remove or limit a non-compete or relationship clause.
Not including compensation for legal costs.
Practical examples
Example 1: An employee received a VSO with only the transition payment. After negotiations through a lawyer, he received two additional monthly salaries and release from work duties.
Example 2: An employee signed too quickly. The UWV rejected his unemployment benefits because the notice period was incorrect.
Example 3: During a reorganisation, a group of employees received a standard VSO. One employee sought legal help and received a higher severance payment than his colleagues.
Checklist: dismissal by mutual consent
Check the reason for dismissal (must be neutral).
Calculate your transition payment and see if you can ask for more.
Check the end date and notice period.
Review clauses (non-compete, relationship, confidentiality).
Always have your VSO checked by a lawyer.
Frequently asked questions (FAQ)
1. Do I retain the right to unemployment benefits with dismissal by mutual consent?
Yes, provided the VSO is correctly drafted and the reason for dismissal is neutral.
2. Can I negotiate the terms?
Yes, virtually all elements are negotiable, from severance payment to clauses.
3. Am I obliged to sign the agreement?
No, it is always voluntary.
4. What happens if I refuse?
Then your employment continues and the employer must choose a different dismissal route.
5. Does my employer pay the legal costs?
This is customary. It is often explicitly included in the VSO.
Why Arslan Advocaten?
Guiding employees through dismissal by mutual consent
Negotiating for higher severance payments and better terms
Ensuring your unemployment benefits are safe
Costs often recovered from the employer
Conclusion
Dismissal by mutual consent can be a good solution if you proceed carefully. With the right negotiations and a well-drafted settlement agreement, you can confidently take the next step in your career.