A reference letter (getuigschrift) with a settlement agreement (vaststellingsovereenkomst) means that, at the end of your employment, your employer records in writing how you performed and which duties you carried out, and that this document is aligned with the arrangements set out in the settlement agreement. The reference letter can directly influence your position on the labour market, especially when you leave via a settlement agreement. In this article you can read how the reference letter relates to the settlement agreement, what you are legally entitled to and how to use it wisely within an outplacement programme.
What is a reference letter and why is it so important?
A reference letter is a written statement from the employer about the employment. Under the Dutch Civil Code (Burgerlijk Wetboek), an employee is entitled to such a statement at the end of the employment contract if he or she asks for it. The reference letter usually mentions the duration of the employment, the role, the main tasks and often also an assessment of performance.
The reference letter plays a major role precisely in the case of dismissal via a settlement agreement. The way in which your departure is described can reassure future employers or, on the contrary, raise questions. A neutral or positive wording helps you to find a new job without unnecessary damage to your reputation. That is why it is sensible to think along about the reference letter and not to wait until the employer draws something up on their own.
In addition, a carefully drafted reference letter is important so that it lines up with your CV and your LinkedIn profile. When there are large differences between the description in the reference letter and the way you present your experience, this can lead to awkward questions during job applications. Aligning everything in advance prevents this kind of misunderstanding and gives you more confidence in the next stage of your career.
- A reference letter confirms the duration and content of your employment.
- The document influences how future employers view your departure.
- A neutral wording prevents a “stain” in your career story.
- Alignment with your CV and LinkedIn makes your profile credible and consistent.
What is a settlement agreement and how does this relate to a reference letter?
A settlement agreement is a written termination agreement between employer and employee, also known as a VSO. In this agreement, the parties record that the employment will end, on which date and under which conditions. Think of the severance payment, the notice period, any exemption from work and arrangements about outplacement or training. The content of a settlement agreement must meet the requirements of the UWV (the Dutch employee insurance agency), so that your right to an unemployment benefit (WW) is not put at risk.
Many settlement agreements also say something about the reason for the dismissal and how the parties will communicate to third parties about each other. This is often summarised as the “departure statement” or “final provision”. It is precisely there that the link with the reference letter arises: the wording of the reason for dismissal in the agreement often forms the starting point for the text of the reference letter and for what is said in reference conversations.
It is therefore sensible to discuss what the reference letter will look like as early as during the negotiation process around the settlement agreement. Instead of arranging the reference letter only after signing, you can include the reference letter in the negotiation. This prevents you from being surprised afterwards by a text you cannot agree with and that hampers you in job interviews.
- The settlement agreement arranges the legal termination of the employment.
- The reason for departure in the VSO often forms the basis for the reference letter.
- Aligning the VSO, the reference letter and references prevents conflicting accounts.
- By making arrangements in advance, you limit the risk of reputational damage.
Legal rights concerning the reference letter upon dismissal
Under Dutch employment law, you as an employee are entitled to a reference letter when you ask for one. This also applies when you leave via a settlement agreement, and even if the employer was not satisfied with your performance. The employer may not refuse the reference letter, but does have some freedom in the wording, as long as the information is accurate and not misleading.
In the case of dismissal by mutual consent, so without the involvement of the UWV or the subdistrict court, it is extra important that the reference letter contains no negative or suggestive remarks. A negative passage can seriously limit your chances on the labour market. It can also be awkward towards the UWV, although the reference letter is formally not decisive for your unemployment benefit (WW) rights. In practice, it can indeed raise questions when it deviates strongly from the neutral wording in the settlement agreement.
Employers are usually cautious with very glowing or, conversely, very negative qualifications, because they can be held liable if the reference letter is demonstrably incorrect or misleading. Many organisations therefore opt for a neutral, factual description. Within those limits, however, it is quite possible to find a wording that does justice to your commitment and professionalism, without the employer feeling uncomfortable.
- You are legally entitled to a reference letter at the end of employment.
- Even in the event of a conflict or underperformance, the employer must issue a statement.
- The information in the reference letter must be accurate and not misleading.
- Neutral, factual wording is legally the safest for both parties.
Reference letter and settlement agreement: which arrangements do you record?
When you conclude a settlement agreement, it is sensible to mention the reference letter explicitly in the arrangements. This can range from a short reference to a fully written-out text as an annex. The more concrete the arrangement, the smaller the chance of disputes afterwards. Especially if there has been tension in the working relationship, a clear arrangement about the reference letter provides peace of mind and certainty.
In practice, the following points about the reference letter are often included in the settlement agreement. The exact wording depends on the situation, but the gist is usually similar. By deliberately discussing these topics, you keep control over how your departure is communicated to the outside world.
- The employer will provide a reference letter on request.
- The reference letter will include at least the duration of the employment, the role and a neutral reason for departure.
- The parties agree on a joint wording for the reason for dismissal, for example “role discontinued due to reorganisation” or “difference of opinion about the way of working”.
- In reference conversations, the employer will adhere to the same neutral line as in the reference letter and settlement agreement.
By recording these points, a coherence arises between the reference letter, references and the text of the settlement agreement. This helps to tell a consistent story to future employers. It also prevents a manager from nevertheless striking a different tone in a telephone conversation than agreed, because there is a clear arrangement on paper.
What do you include, and not include, in a reference letter upon dismissal by mutual consent?
In the case of dismissal by mutual consent, you usually want to prevent the reference letter from dwelling extensively on conflicts, underperformance or illness. At the same time, the text must remain honest and defensible. A good balance often lies in a neutral wording of the reason for departure and a positive description of tasks, responsibilities and results achieved.
In terms of content, you can think of a structure in which the formal details are stated first, then the main duties and any successes, and finally a short, neutral sentence about the reason for departure. Extensive judgements about character or personal qualities are often unnecessary and can even be counterproductive. New employers mainly want to know what you did and how you contributed to the organisation.
- Always mention the role, department and period of the employment.
- Describe core responsibilities and concrete results where possible.
- Use a neutral reason for departure, for example “ended by mutual agreement”.
- Avoid details about conflicts, improvement programmes or sick leave.
By structuring the reference letter in this way, a document arises that is workable and defensible for both you as an employee and for the employer. It supports your job applications, without the employer feeling that they are withholding information that could later lead to disputes.
Examples of wording in the reference letter and VSO
Abstract explanation is useful, but examples often make things clearer. Suppose your employment ends due to dismissal for business-economic reasons, for example because of a reorganisation or the discontinuation of your role. In that case, a comparable, neutral wording can be used in both the settlement agreement and the reference letter, so that no doubts arise about your performance.
An example of a reason for departure in the settlement agreement could be: “The employer and employee note that the employee’s role is being discontinued due to a structural reorganisation within the organisation. The parties therefore agree, by mutual consent, to terminate the employment contract.” In the reference letter this can be translated into: “The employment contract was terminated by mutual consent in connection with a reorganisation, in which the employee’s role was discontinued.”
When it is more a matter of a difference of opinion, for example about the way of working together or about priorities in the work, a wording such as the following can be chosen: “The parties have a difference of opinion about the way in which the role was carried out. They have decided by mutual consent to terminate the employment.” This is honest, but leaves room for your own explanation during job interviews, in which, with the help of an outplacement programme, you can present a solid and positive story.
- Make sure the reason for departure in the VSO and the reference letter align with each other.
- Opt for neutral terms such as “by mutual consent” or “difference of opinion”.
- Avoid words such as “underperformance”, unless this is legally unavoidable.
- Use the outplacement programme to practise your own story around this text.
The role of the reference letter within an outplacement programme
Outplacement is guidance towards new work after dismissal. A specialised agency such as Care4Careers helps you to process the loss of your job, to map out your strengths anew and to draw up a realistic search profile. Within such a programme, the reference letter plays an important role, because it is one of the building blocks of your job application strategy. Together with your CV, LinkedIn profile and cover letters, it forms a coherent whole.
An experienced career coach will always lay the reference letter alongside the text of the settlement agreement. If the dates, job titles and descriptions match one another, you can enter the conversation with new employers with more confidence. When there are ambiguities or tensions in the wording, the coach can look with you at whether it is worthwhile to discuss this further with the employer, or whether to focus mainly on developing a convincing personal story that removes any questions.
- The reference letter is an important document within your job application materials.
- A career coach helps to align the text, CV and LinkedIn with one another.
- Illogical or negative wording can be offset with a strong story.
- A good outplacement programme focuses on both emotional processing and practical steps.
Care4Careers regularly supports people who leave via a settlement agreement in making the most of their reference letter. In conversations, you practise how to explain the reason for departure briefly, honestly and without a defensive tone. In this way, the reference letter does not become a burden, but rather a tool in the conversation with future employers.
How do you cleverly include the reference letter in the negotiations?
When concluding a settlement agreement, attention is often focused mainly on the severance payment, the notice period and any exemption from work. Yet it is sensible to actively involve the reference letter in the discussions as well. Especially when there has been a disturbed working relationship, this document is one of the few means you have to limit future damage. Negotiating consciously about this therefore belongs to a complete strategy around your dismissal.
You could, for example, propose drawing up a draft text for the reference letter and presenting it to the employer. Many employers appreciate it if you make the first proposal, because they can then respond rather than having to devise everything themselves. Together you can then look for wording that is acceptable to both parties. When the atmosphere is tense, a legal adviser or coach can help to keep the tone businesslike and constructive.
- Raise the subject of the reference letter at an early stage.
- Propose a draft text yourself that is factual and neutral.
- Ensure that the reason for departure, the reference letter and references align.
- Use an adviser if necessary to choose the wording carefully.
Besides the content of the reference letter, in the negotiations you can also make arrangements about who conducts future reference conversations and which line is maintained in doing so. This can be part of broader strong negotiation over the VSO arrangements, in which you look not only at money, but also at your future position on the labour market.
UWV, unemployment benefit rights and the reference letter
With a settlement agreement, it is crucial that your unemployment benefit (WW) rights are preserved. The UWV assesses whether you cooperated with your dismissal on your own initiative and whether the conditions are reasonable. The text of the settlement agreement is decisive here: the reason for termination, the notional notice period and the amount of the payment are important points of attention. The reference letter formally does not play a leading role in this, but a contradictory wording can indeed lead to additional questions.
If, for example, the settlement agreement states that the dismissal is for business-economic reasons, while the reference letter speaks mainly of underperformance, this can create ambiguity for the UWV. It is therefore sensible to align the wording and, in case of doubt, to have the agreement reviewed. A specialised lawyer or an agency familiar with the UWV rules can assess whether the text is suitable for preserving your unemployment benefit (WW) rights.
- The UWV bases itself primarily on the settlement agreement, not on the reference letter.
- Contradictions between the VSO and the reference letter can lead to questions.
- A neutral reason for departure is usually the safest for your unemployment benefit position.
- In case of doubt, have the agreement legally reviewed in good time.
Because the legal details can be complex, many employees choose to have the VSO checked before they sign. Ideally, this also includes a look at the arrangements about the reference letter, so that you know for certain that everything is coherent.
Reference letter, dismissal and your broader career outlook
A dismissal, even if it goes via mutual consent, often touches on your self-image and future outlook. A carefully drafted reference letter can help to round off this period and to look ahead with more confidence. The document is then not only a formal obligation, but also a recognition of what you did within the organisation. Especially if you have worked for the same employer for many years, that recognition carries meaning.
In conversations about rights upon dismissal, attention often goes to money and time frames. That is understandable, but for the rest of your career, reputation, references and your own story are at least as important. A good reference letter, in combination with a well-considered settlement agreement and professional guidance, forms a solid basis from which to take the next step in your career.
- A good reference letter supports your self-confidence after dismissal.
- Reputation, references and personal story are crucial for your career.
- Outplacement helps to bring these elements into line with one another.
- A settlement agreement is more than just a financial arrangement.
In its outplacement programmes, Care4Careers focuses on both the legal and practical side of dismissal and on your personal development and labour market opportunities. The reference letter and the arrangements in the settlement agreement are seen as part of a larger whole: your sustainable employability and future on the labour market.
Are you unsure about what your VSO says? Have your settlement agreement checked by an expert from Care4Careers, so you can be sure you are not overlooking anything.