Have you been offered a settlement agreement (VSO) during a reorganization? There is often more room for negotiation than you think. In this guide, we explain when a VSO is used, what rules apply to reorganization dismissals, and what points you should always check and — where possible — improve.
Important: never sign immediately. Have your VSO legally reviewed. A single sentence about notice period or dismissal reason can affect your unemployment benefits or cost you thousands of euros.
What is a reorganization?
A reorganization is a significant change in the organization, for example due to:
Financial problems or cost reduction
Merger or acquisition
Technological changes/automation
Strategic restructuring or outsourcing
Consequence: positions change or are eliminated and dismissal may follow.
When may an employer give reorganization dismissal?
The employer must demonstrate business economic necessity (annual accounts, forecasts, reorganization plan) and:
Redeployment must be investigated (including retraining or additional training if necessary).
The reflection principle must be correctly applied (objective selection, no arbitrariness).
Only when all of this is in order does dismissal come into play (via UWV or VSO).
Redeployment obligation: first look for alternative work
Before dismissal, the employer must seriously investigate whether you can transition to a suitable position within a reasonable timeframe. This can also be a nearby vacancy or position with training. If that is not possible? Only then dismissal.
Collective dismissal (WMCO), works council and trade unions
For ≥ 20 dismissals within 3 months in the same UWV work area, the WMCO applies. The employer must then inform and consult trade unions and — if present — the works council (OR). Often a social plan is created with agreements on compensation, guidance, and priority rules.
Reflection principle: how is it determined who must go?
Selection takes place per interchangeable job group and per age category (15–25, 25–35, 35–45, 45–55, 55+). Within each category, in principle the person with the shortest length of service goes first. Exceptions:
Closure of entire company/location
Unique position that is completely eliminated
Elimination of complete job group
Deviating collective labor agreement provisions or hardship clause (indispensable expertise)
Two routes for dismissal during reorganization
1) Dismissal via UWV
UWV assesses: business economic necessity, redeployment, reflection.
After permit: termination with statutory notice period (procedure time may be deducted, minimum 1 month remaining).
You are entitled to at least the transition payment.
2) Dismissal by mutual consent via VSO
Employer and employee make agreements in a settlement agreement.
Negotiating for more than just the transition payment is possible (exemption from work, outplacement, training budget, extra compensation, end date, reference, legal costs).
Pay attention to unemployment benefit safety (correct wording, notice period, end date).
Useful to consider in your deliberations:
Disagree with UWV dismissal? Here is what you can do
Check the reflection and substantiation of the employer.
File a defense in the UWV procedure.
Does UWV approve anyway? Then you can go to the subdistrict court within the deadlines (annulment, reinstatement of employment or fair compensation — art. 7:682 BW).
More procedural background:
Summary proceedings: what is it, when and how does the procedure work?
Appeal after a judgment: when, how, and what are your chances?
VSO during reorganization: the most important negotiation points
1) Severance payment
Minimum: transition payment (art. 7:673 BW).
Negotiate for a higher amount (goal: compensation for notice period, job search time, special circumstances).
Sometimes the employer claims financial hardship; have that substantiation reviewed.
2) End date & notice period
Must be correct regarding unemployment benefits (fictitious notice period).
3) Exemption from work with pay
Immediately or from a fixed date, including retention of bonus/holiday pay.
4) Neutral dismissal reason
Formulate business economic reasons; avoid reproachful wording → unemployment benefit safe.
5) Extras that are often possible
Training budget or outplacement
Positive reference / neutral testimonial text
Keep laptop/phone or agreements on non-compete/relationship clause
Legal cost reimbursement (customary)
6) Re-employment condition
Does your (former) position return within 26 weeks? Then the employer must approach you first.
More about cost estimates and process choices:
Examples from practice
Extra compensation + exemption: standard social plan was increased and the employee received job search leave with continued pay.
Training budget: in addition to compensation, retraining was negotiated → greater job prospects.
VSO review pays off: colleagues signed immediately; one employee had the VSO reviewed and received better terms.
Checklist: VSO during reorganization
📄 Dismissal reason neutral (business economic) and unemployment benefit safe
💶 Transition payment calculated and room for extras utilized
📅 Notice period correctly applied (fictitious notice period)
📝 Exemption from work with pay (including bonus/holiday allowance)
🎓 Training/outplacement agreed upon
💻 Additional points: non-compete/relationship clause, company equipment, reference
⚖️ Legal costs reimbursed by employer
✅ VSO reviewed before signing
Common mistakes (avoid them)
Thinking that a social plan is binding → individual negotiation often remains possible.
Signing too quickly without unemployment benefit check or correct notice period.
Not requesting extras (training/outplacement).
Not verifying the transition payment and no legal review.
Frequently Asked Questions (FAQ)
1) Do I have to sign a VSO during reorganization?
No. You can negotiate, or have your case assessed in a UWV procedure. A VSO is voluntary — only sign when the terms are satisfactory.
2) Do I retain my right to unemployment benefits with a VSO?
Yes, provided the VSO is unemployment benefit safe (neutral reason, correct dates/notice period, no blame). Always have this reviewed.
3) Will I receive more than the transition payment?
Often yes, especially in collective processes or when the employer wants quick clarity. Think of extra compensation, exemption from work, training/outplacement, and lawyer costs.
4) What is a social plan?
A set of agreements in (collective) dismissals about compensation and guidance, among other things. Not always legally required, but customary in larger reorganizations.
5) Does my employer pay my lawyer costs?
Regularly yes — as part of the VSO. It is customary to include a reasonable fee for legal review.
Why Arslan Advocaten?
Specialized in dismissal and reorganizations
Unemployment benefit safe and maximum VSO terms
Negotiating for higher compensation and suitable extras
Speed & certainty: we set up the right sequence, so you miss nothing
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