Dismissal by mutual consent means that you and your employer agree together to end the employment contract, often recorded in a settlement agreement (vaststellingsovereenkomst, VSO). There is then no dismissal via the subdistrict court or the UWV, but a mutual arrangement. It is precisely with this kind of termination that you can often make arrangements about an outplacement programme, transition payment and notice period. In this article you will read how dismissal by mutual consent works, which rights you have and how you can use this situation for a new career step.
What exactly is dismissal by mutual consent?
Dismissal by mutual consent is a form of ending the employment contract in which employer and employee reach arrangements together. The arrangements are usually recorded in a settlement agreement (vaststellingsovereenkomst), also known as a VSO. This agreement describes, among other things, the end date, the financial arrangement, any outplacement support and arrangements about references.
According to Dutch employment law, this way of ending an employment contract is only valid if both parties agree voluntarily and the arrangements are set out clearly and in writing. For the right to unemployment benefit (WW), the UWV (Uitvoeringsinstituut Werknemersverzekeringen, the Dutch employee insurance agency) assesses afterwards whether you did not become culpably unemployed. That is why the wording in the settlement agreement is crucial.
- Termination based on mutual agreement, without a court or UWV procedure.
- Always recorded in a written settlement agreement.
- Scope to negotiate about the transition payment and additional arrangements.
- Important for the right to WW: no resignation of your own and no culpable reason.
Dismissal by mutual consent is often used in the case of reorganisation, long-running tensions, a difference of opinion or when your position ceases to exist. In situations where you become redundant or your position disappears, an employer may, for example, offer a VSO in combination with outplacement support to guide you towards new work.
The legal basis: how does this relate to dismissal law and the UWV?
With dismissal by mutual consent, the normal dismissal route via the UWV or the subdistrict court is bypassed. Legally speaking, this is a termination agreement on the basis of Article 7:900 of the Dutch Civil Code (a settlement agreement). The usual grounds for dismissal in the Civil Code, such as business economic reasons or underperformance, are often mentioned, but do not have to be reviewed by an authority.
The UWV plays an important role in assessing your WW rights after the termination. Among other things, the UWV looks at the reason for the dismissal, the notice period and whether you did not take the initiative to end the employment yourself. A well-drafted settlement agreement therefore often explicitly states that the initiative lies with the employer and that there is no culpable conduct.
- No mandatory UWV or subdistrict court procedure, but a review afterwards by the UWV for WW.
- The reason for the dismissal must be worded neutrally and in a non-culpable way.
- The notional notice period must be respected to avoid gaps in your WW.
- The arrangements in the agreement have a direct impact on your benefit rights.
Anyone who wants to know more about the general rules around dismissal can delve into the broader concept of dismissal and the various routes that employers in the Netherlands can follow. Dismissal by mutual consent is a separate, more negotiable route within that.
The role of the settlement agreement (VSO)
The settlement agreement is the legal document in which all arrangements around dismissal by mutual consent are recorded. It is a contract between you and your employer stating when your employment ends, which compensation you receive and which additional arrangements there are. Think of the payment of holiday days, bonus, study costs, and the question of whether an outplacement programme is offered.
Because a VSO is binding as soon as you have signed, it is wise to check the content carefully or have it reviewed legally. In Dutch practice, it is customary for employees to be given a few days to several weeks of reflection period. It is also often explicitly stated that you have had the right to advice, for example from a lawyer, a trade union or a career coach.
- Recording of the end date, financial settlement and other terms of employment.
- Scope to make arrangements about outplacement or career guidance.
- An important document for the UWV when assessing your WW application.
- Always read it first, have it reviewed and only then sign.
For a deeper explanation of the legal meaning of a VSO, you can look at what a settlement agreement entails and which elements return as standard. That helps you to assess more precisely what is missing or could be better in your situation.
Dismissal by mutual consent and outplacement: why make arrangements now?
A crucial question with dismissal by mutual consent is: what does this mean for your next career step? Precisely because there is scope to negotiate, this is the moment to include arrangements about outplacement. Outplacement is support in finding a new job, offered by a specialised agency such as Care4Careers. The programme can consist of career coaching, application training, networking advice and support in processing the dismissal.
For employers, offering a carefully designed outplacement programme is a way of dealing with dismissal in a social and responsible manner. For you as an employee, it increases the chance of a suitable new position and often shortens the period of unemployment. Many settlement agreements therefore include a separate budget or programme duration for outplacement.
- Outplacement supports you in processing the dismissal and regaining self-confidence.
- A programme helps you to sharpen and strengthen your position on the labour market.
- Employers show with this that they take responsibility for a soft landing.
- A fixed amount or programme duration can be explicitly agreed in the VSO.
Anyone who wants to understand what outplacement precisely entails sees that it is more than just help with applying for jobs. It is also about reflection on who you are as a professional, which direction suits you and how you take control of your career after dismissal by mutual consent.
Negotiating terms: transition payment, final settlement and notice period
Because dismissal by mutual consent is not reviewed by a court, the negotiating table is the place where your position is determined. The transition payment (transitievergoeding), the statutory severance payment to which you are entitled in many situations, is an important starting point. Employer and employee can agree that the transition payment is paid out in full, is increased or is partly converted into an outplacement budget.
In addition, the final settlement plays a role: the payment of outstanding holiday days, holiday allowance, any bonuses and expense allowances. The notice period from your employment contract or collective labour agreement (cao) also remains relevant, because for the WW the UWV looks at whether the so-called notional notice period has been respected. An end date that is too early can mean that your WW starts later.
- The transition payment as a basis, possibly supplemented with an extra arrangement.
- Final settlement of holiday days, holiday allowance and other rights.
- Notice period in line with the employment contract or cao to avoid gaps in the WW.
- The option to use (part of) the compensation for outplacement.
If you want more insight into the financial completion, it helps to know how the final settlement on dismissal is built up and which items return as standard. This way you can check specifically that no rights are overlooked.
Practical steps: from first proposal to signed agreement
The process around dismissal by mutual consent often takes place in steps. Usually it starts with a conversation in which the employer indicates that they want to end the collaboration and announces a proposal. That can come as a shock, certainly if you had not seen it coming. This is usually followed by a draft settlement agreement that you may study at your leisure.
It is wise not to sign straight away from the first moment, but to take time for reflection and advice. You can seek legal advice and at the same time think about your career: what do you want to do next, which support do you need and which arrangements about outplacement are of value to you? In this phase you can also take the initiative yourself to raise outplacement for discussion with your employer.
- Receipt of the first proposal and the draft VSO.
- Taking time for legal and career advice, not signing straight away.
- Negotiating about compensation, notice period and outplacement.
- Only signing once the arrangements feel clear and balanced.
A concrete example: suppose your employer offers a transition payment without outplacement. You can propose using part of the budget for a programme at a specialised agency, because support helps you to find new work more quickly. An employer is often willing to consider this, precisely in the case of dismissal by mutual consent.
Outplacement in practice: how does Care4Careers help after a VSO?
Care4Careers is specialised in outplacement, second track reintegration (re-integratie tweede spoor) and career guidance. After dismissal by mutual consent, an outplacement programme can help you to move from an uncertain period to a new perspective. A programme usually starts with an intake and a thorough analysis of your profile, qualities and wishes. This is followed by targeted support with orientation, labour market strategy and application skills.
An important part is the emotional processing of the dismissal. Dismissal often touches on identity, security and self-confidence. An experienced coach helps you to make room for new possibilities, so that you do not only look for ‘a job’, but for work that suits your talents and capacity. Certainly if you are coming out of an intensive period, for example after a reorganisation or high workload, this reflection can be essential.
- Intake and career scan to clarify your starting point.
- Coaching in formulating a realistic and fitting career goal.
- Practical support with your CV, LinkedIn, networking and interviews.
- Attention to resilience, balance and sustainable employability.
Anyone who wants to understand what a programme looks like step by step can delve into the structure of an outplacement programme and the average duration of outplacement support. This helps you to agree a realistic term and budget in the VSO.
Dismissal by mutual consent in the case of reorganisation or role redundancy
Dismissal by mutual consent often occurs in the context of reorganisation or the disappearance of positions. Formally, an employer could go to the UWV in the case of business economic dismissal, but in practice an attempt is often first made to reach arrangements via a VSO. Employees are sometimes declared redundant and receive a proposal for termination, sometimes combined with an offer of outplacement.
In these situations it is important to understand which rights you have when your position disappears and which alternatives there are, such as another position within the organisation or redeployment in an adjusted role. When that is not feasible, a carefully designed termination by mutual consent, including support towards new work, can be a balanced solution.
- Reorganisation can lead to redundancy and proposals for a VSO.
- Redeployment or an internal change of position must often be investigated first.
- Outplacement is regularly deployed to support employees properly.
- Clear information about rights and obligations prevents unnecessary uncertainty.
For anyone going through a reorganisation, articles such as declared redundant and dismissal through reorganisation: what does it mean and how do you move forward? give extra context about the combination of dismissal, rights and outplacement possibilities.
Common pitfalls and how to avoid them
With dismissal by mutual consent, it sometimes seems as if there is little to choose: the proposal is on the table and the pressure can feel high. Yet there are various pitfalls that you can avoid with the right information. A first pitfall is signing too quickly, without properly overseeing the consequences for your WW, your pension and your career. A second pitfall is asking for no attention, or too little attention, for support towards new work.
In addition, the wording in the settlement agreement can be unfavourable. If, for example, there is talk of ‘own request’ or ‘culpable conduct’, the UWV can reject your WW application. A notice period that is too short or an incomplete final settlement can also create financial gaps. That is why it is advisable to have the proposal looked at both legally and from a career perspective.
- Do not sign hastily, but seek advice first.
- Check on WW safety: no culpable reason, correct notice period.
- Consciously ask for attention to outplacement or career guidance.
- Go through the financial arrangements (transition payment, final settlement) carefully.
Outplacement is not legally required, but in many sectors it has by now become a common arrangement with dismissal. Insight into when outplacement is expected or offered helps you to sit firmly at the negotiating table and to name support emphatically.
Summary: dismissal by mutual consent as the starting point of a new phase
Dismissal by mutual consent is more than just a decent way of ending an employment relationship. It is a moment at which legal, financial and career questions come together. By recording the arrangements carefully in a settlement agreement, taking account of UWV criteria and having an eye for your future on the labour market, you can make a difficult situation into a new beginning.
Outplacement plays an important role in that. Support from a specialist such as Care4Careers helps you to process the departure, to map your qualities anew and to search purposefully for suitable work. When, during the negotiations about dismissal by mutual consent, you consciously ask for room for such a programme, you invest not only in a good completion, but also in sustainable career development.
English summary: Dismissal by mutual consent and outplacement
Dismissal by mutual consent means that you and your employer agree to terminate the employment contract, usually recorded in a Dutch settlement agreement (vaststellingsovereenkomst, VSO). There is no court or UWV dismissal procedure; instead, the terms are negotiated between both parties. For Dutch unemployment benefits (WW), the UWV will later assess whether you became unemployed through no fault of your own, which makes the wording of the agreement crucial.
This type of dismissal creates room to negotiate more than just a severance package. It is also the moment to arrange an outplacement programme, so you receive structured support in finding a new role. A specialised agency such as Care4Careers guides you through reflection on your career, labour market orientation and practical job search, which often shortens the period of unemployment.
- The VSO sets out end date, compensation and any outplacement support.
- The UWV checks whether you still qualify for Dutch unemployment benefits.
- You can negotiate on severance, notice period and career support.
- Outplacement helps you process the dismissal and move towards sustainable new work.
By combining sound legal advice with professional career coaching, dismissal by mutual consent can become the starting point of a new and more fitting phase in your working life, rather than only a painful ending.