Settlement Agreement and Underperformance: What Are Your Rights?

·4 min read
Settlement Agreement and Underperformance: What Are Your Rights?

Settlement agreement due to underperformance? Discover your rights, risks, and how to safeguard your unemployment benefits. Arslan Advocaten helps with negotiations.

An employer who believes that an employeeis dysfunctional(does not function properly) may attempt to terminate the employment relationship. This is often done via asettlement agreement (VSO). This is a sensitive situation for employees: you want to protect your good name and ensure that you do not unjustly find yourself without income.

In this article we explain how a VSO works in case of dysfunction, what your rights are and how you prevent your unemployment benefit from being jeopardized.


What is dysfunction?

Dysfunction means that the employer believes that the employee is not performing well. This can be about:

  • Failure to achieve objectives.

  • Insufficient quality of work.

  • Problems with attitude or behavior.

  • Not a fit within the team or organization.

Important: the employer must be able to properly substantiate thisand give the employee the opportunity to improve.Dismissal due to poor performance: normal route


Normally,

dismissal due to poor performancecan only be done via thesubdistrict court judge. The employer must then demonstrate that:You are not performing sufficiently.

  • You have been addressed about this.

  • You had a real chance to improve.

  • There is no suitable other function available.

  • Because this is difficult to prove, employers often prefer to opt for a

settlement agreement.Risks of a VSO in the event of poor performance


Unemployment benefits rights at risk

  • : If the VSO states that you will be dismissed due to poor performance, the UWV can refuse your unemployment benefits.Damage to reputation

  • : A negative reason for dismissal can influence future employers.Compensation too low

  • : Employers often only offer the transition compensation.What should you pay attention to?


Formulate the reason for dismissal

  1. Make sure that the reason

    • is described neutrally, for example “difference of opinion” or “in good consultation”.Compensation

  2. Check whether you will receive at least the transition compensation.

    • Negotiate for extras (extra months salary, training budget, exemption from work).

    • Notice period

  3. Check whether the statutory notice period has been applied correctly in connection with your WW.

    • Non-compete clause

  4. See if this will hinder you from finding new work.

    • Practical examples


Example 1:

  • An employee received a VSO for the reason of “dysfunction”. The UWV refused the unemployment benefit. After adjusting the VSO to “difference of opinion”, he still received benefits.Example 2:

  • An employee was only offered the transition payment. After negotiations, he received three additional monthly salaries.Example 3:

  • An employee accepted a negative reason in the VSO too quickly, which hindered him when applying for jobs. Later this had to be corrected with legal assistance.Checklist: VSO in case of dysfunction


📄 Check the reason for dismissal – must be neutral.

  • đź’¶ Calculate whether the transition payment is correct.

  • đź“… Please note the correct notice period.

  • đź”’ Look at clauses that limit you.

  • ⚖️ Have your VSO checked by an employment lawyer.

  • Common mistakes


Drawing too quickly under pressure.

  • Accept a negative reason for dismissal.

  • Do not request additional compensation on top of the transition compensation.

  • Do not have a legal check done, which puts unemployment at risk.

  • Frequently asked questions (FAQ)


1. Can I get unemployment benefits if my VSO shows dysfunction?

No, this could cause problems. Always make sure the reason is neutral.
2. Am I obliged to sign a VSO in case of dysfunction?

No, this is voluntary. If you refuse, the employer will have to go to court.
3. Am I entitled to transition compensation in the event of dysfunction?

Yes, unless you have acted in a seriously culpable manner.
4. Can I negotiate for more than the transition payment?

4. Kan ik onderhandelen voor meer dan de transitievergoeding?
Yes, there is often room for extras.

5. Must my employer reimburse my attorney fees?
This is customary and should be included in the VSO.


Why Arslan Advocaten?

  • Specialized indismissal and poor performance

  • Combating negativereasons for dismissalthat damage your unemployment benefits or reputation

  • Negotiating forhigher compensation and better conditions

  • Costs are often recovered from the employer


Conclusion

A settlement agreement in the event of poor performance can be risky. Make sure the reason is neutral and that you receive fair compensation. Always seek legal advice before signing, so that you do not miss out on any rights or money.

Frequently asked questions

Wat zijn mijn rechten bij ontslag?
Bij ontslag heeft u mogelijk recht op een transitievergoeding, een correcte opzegtermijn en in sommige gevallen een billijke vergoeding. Teken nooit zomaar een vaststellingsovereenkomst zonder juridisch advies.
Kan mijn werkgever mij zomaar ontslaan?
Nee, uw werkgever moet een geldige reden hebben en de juiste procedure volgen. Bij een vast contract is toestemming van het UWV of de kantonrechter vereist, tenzij u instemt met een vaststellingsovereenkomst.
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