Asettlement agreement (VSO)is a proposal from your employer to terminate the employment contract in good consultation. But what if you are not satisfied with the offer and decide not to sign? Many employees fear that refusing will have negative consequences. In reality, you often have more options than you think.
In this article we discuss when it may be wise to refuse a VSO, what the risks are and what alternatives exist.
Do you have to sign a settlement agreement?
No, a VSO isalways voluntary. You are never obliged to sign. You may refuse, negotiate or use a cooling-off period.
👉 Important: if you do not sign, your employment contract will continue to exist. Your employer must then choose a different dismissal route, such as via theUWVor thesubdistrict court.
Reasons for refusing a VSO
Compensation too low: If only the transition compensation is offered and you are entitled to more.
Unemployment risk: If the reason for dismissal is incorrectly formulated or the notice period is missing.
Adverse clauses: Such as a strict non-competition clause that prevents you from doing new work.
No neutral reason for dismissal: Can damage your reputation and jeopardize your unemployment benefits.
No reimbursement for legal costs: This should be included as standard.
Practical examples
Example 1:An employee received an offer with only the transition payment. He refused. The employer then offered an additional compensation of three months' salary to reach an agreement.
Example 2:An employee did not sign because there was a strict non-competition clause in the VSO. After the intervention of a lawyer, the clause was deleted and he was able to take on new work.
Example 3:An employee during a reorganization received a standard VSO. By refusing and having the case referred to the subdistrict court, he received fair compensation on top of the transition payment.
What happens if you refuse?
If you refuse a VSO, these are the possible scenarios:
You remain employed
As long as you do not sign anything, your employment contract will continue.
You keep your wages and your employment rights.
Employer starts dismissal procedure via UWV or court
In case of dismissal for economic reasons or after 2 years of illness → UWV.
In case of dysfunction or a disturbed employment relationship → subdistrict court.
Negotiation will still follow
The employer often makes a better offer to avoid proceedings.
Checklist: when to refuse VSO?
📉 Compensation is lower than you find minimally acceptable
❌ Reason for dismissal is formulated negatively or culpably
🔒 Non-competition or relationship clause hinders your future
💶 No compensation for legal costs included
⚖️ You would prefer that a judge assess your case
Frequently asked questions (FAQ)
1. What happens if I refuse a VSO?
Then you remain employed. The employer must choose a different dismissal route.
2. Am I at risk of dismissal without compensation?
No, you always retain at least the transition payment in the event of dismissal via a judge or UWV.
3. Will I receive unemployment benefits if I refuse?
If your employer terminates your contract via UWV or the subdistrict court judge, you retain your right to unemployment benefits.
4. Can refusing lead to a worse deal?
Sometimes the employer tries to increase pressure, but often a better offer is made.
5. Can a lawyer help me?
Yes, a lawyer can assess whether refusal is smart and negotiate for a better result.
Advantages and disadvantages of refusing
Advantages
You do not sign an unfavorable deal
Chance of higher compensation through negotiation or court
Your unemployment rights are retained if the procedure is correct
Disadvantages
Uncertainty: employer can start a procedure
Possible longer period of tension and uncertainty
Judge can sometimes award a lower compensation than you could have negotiated
Why Arslan Advocaten?
Assessing whether your VSO is favorable enough
Advising or refusing is the best option
Negotiating for a higher compensation or better conditions
Guidance during procedures via UWV or subdistrict court
Conclusion: sign or refuse?
Refusing a settlement agreement is sometimes the best choice, especially if the conditions are not good or your unemployment benefits are at risk. Always have your VSO legally assessed before you decide. With good negotiation or a procedure you can often achieve more than the first offer.