Settlement Agreement in the Netherlands: What is it and How Can Expats Get Help?
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Special thanks to ontslagspecialist.nl for helping us with this article.
Working in the Netherlands offers many benefits. Salaries are generally competitive, and employees enjoy strong dismissal protection. This means that if you have a permanent employment contract, your employer cannot simply terminate your employment. Dismissal is only allowed with prior approval from the Employee Insurance Agency (UWV) or the subdistrict court (kantonrechter).
Dismissal in the Netherlands: how the legal procedure works
The UWV or the subdistrict court will not easily grant permission for dismissal. Under Dutch employment law, there are only a limited number of legal grounds that allow termination. These grounds are assessed strictly, and a dismissal request will be rejected if the employer cannot meet all legal requirements.
The most common legal grounds for dismissal include:
- Business-economic reasons (e.g., restructuring or redundancy)
- Underperformance
- A disrupted working relationship
As an employee – and certainly as an expat unfamiliar with Dutch procedures – it is strongly recommended to submit a defence with the help of a legal specialist. In practice, more than 50% of dismissal requests fail because the employer’s case is not strong enough.
Alternative to Court: the settlement agreement (Termination Agreement)
Because legal proceedings are costly, time-consuming and uncertain for employers, many choose to offer an expat employee a settlement agreement instead. This is also called a termination agreement.
A settlement agreement usually includes:
- Agreement to end the employment contract on a specific date
- A severance payment (transition payment or higher negotiated compensation)
- Garden leave with salary continuation
- A reference letter
- Waiver of a non-compete clause
Is a settlement agreement WW-proof?
A settlement agreement must be carefully drafted to ensure you remain eligible for Dutch unemployment benefits (WW).
If the correct legal wording is missing or the notice period is incorrect, you may lose your right to benefits.
To avoid this, always let our dismissal specialists review your settlement agreement before signing.
Do you have to accept a settlement agreement?
No. You are never obliged to accept a settlement agreement.
Your employer may not have a legally valid ground for dismissal. If you prefer to continue your employment, our employment law experts can check – free of charge – whether the employer has a strong legal case or not.
Can expats negotiate better terms?
Yes. The initial offer from an employer is rarely the final offer. With the right legal negotiation strategy, you can often achieve:
- A higher severance payment
- A longer paid notice period
- A period of garden leave
- Removal or softening of restrictive clauses
Our specialists negotiate daily on behalf of expats and consistently achieve improved agreements.
Why expats should seek legal help immediately
Dutch dismissal law is complex and procedural. A small mistake can cost you thousands of euros – or even your right to unemployment benefits (WW).
Expats are particularly vulnerable because they often:
- Do not know Dutch labour regulations
- Are unfamiliar with the UWV procedure
- Have work permits, visas or relocations tied to their employment
Professional legal help ensures the maximum outcome and protects all your rights.
Why choose Ontslagspecialist.nl for expat dismissal support?
- Over 25 years of experience in Dutch dismissal law
- Specialised in helping expats working in the Netherlands
- Hundreds of successful cases for international employees
- Top-rated by clients, with excellent Google reviews
- Dedicated expat-focused platform: settlement-agreement.nl
Our team has in-depth knowledge of Dutch employment legislation, settlement agreement negotiations, and WW eligibility requirements.
Facing dismissal as an expat in the Netherlands? Take immediate action
If you have received a settlement agreement or fear dismissal, contact our specialists right away.
You have nothing to lose – and potentially a lot to gain.
Call: 020 6160 120
Email us your situation for a free first assessment
Your first consultation is 100% FREE.
Your rights, income and future in the Netherlands deserve the best protection.