Dismissal by Mutual Consent and Your Next Career Step

Dismissal by mutual consent in the Netherlands means that you and your employer agree to terminate the employment contract together, usually laid down in a settlement agreement (vaststellingsovereenkomst, VSO). There is no court decision or UWV dismissal permit; instead, the terms are negotiated. Precisely at this moment, you can also arrange outplacement support, severance and notice. This article explains how dismissal by mutual consent works, what your rights are and how to use this situation as a starting point for a new career step.

What does dismissal by mutual consent mean under Dutch law?

Dismissal by mutual consent is a way of ending the employment relationship where both parties voluntarily agree on the terms. The agreement is recorded in a written settlement agreement (vaststellingsovereenkomst). This contract specifies the end date, financial arrangements, any outplacement support and practical issues such as references and handover.

Under Dutch labour law, such an agreement is only valid if both parties sign it freely and the terms are clear. For unemployment benefits (WW), the Dutch social security authority UWV (Uitvoeringsinstituut Werknemersverzekeringen) will later assess whether you are entitled to benefits. The UWV checks, among other things, whether the initiative came from the employer and whether there is no serious misconduct.

• Termination based on mutual agreement, without court or UWV dismissal route.
• Always recorded in a written settlement agreement (VSO).
• Room to negotiate severance and additional arrangements such as outplacement.
• Important for WW: the initiative should formally lie with the employer.

Dismissal by mutual consent is common in cases of reorganisation, redundancy or a persistent conflict of vision. In many of these situations, employers offer a VSO plus an outplacement programme to help employees move to a new job more smoothly.

The settlement agreement (VSO) as the central document

The Dutch settlement agreement, or VSO, is the central legal document in dismissal by mutual consent. It sets out when the contract ends, which compensation you will receive and how open balances such as holidays and bonuses will be settled. It can also include agreements on outplacement, training and how the employer will present your departure externally.

Once signed, the VSO is binding. That is why it is standard practice in the Netherlands to take time for legal review before signing. Many agreements explicitly state that the employee has had the opportunity to seek advice from a lawyer, trade union or advisor. You usually have a reflection period of several days up to a couple of weeks.

• Defines end date, severance, settlement of holidays and other rights.
• Can include a separate budget or arrangement for outplacement support.
• Is used by the UWV when assessing your WW claim.
• Should be checked for wording that could harm your benefit rights.

Because the VSO directly affects your financial and career position, many employees combine legal review with career advice to check whether the agreement also offers a realistic bridge to new work.

Why link dismissal by mutual consent to outplacement?

One of the main advantages of dismissal by mutual consent is the room to negotiate tailor-made solutions. Unlike court-based dismissal, the parties are not bound to a strict legal formula. That makes this the ideal moment to include outplacement support in the agreement. Outplacement is structured career support aimed at helping you find a new job faster and in a more sustainable way.

For employers, offering outplacement is part of responsible HR policy and helps protect their employer brand. For you as an employee, it increases your chances of finding work that fits your skills and ambitions, rather than simply accepting the first available role. Many VSOs therefore contain a specific amount or defined outplacement programme with a specialised agency such as Care4Careers.

• Outplacement supports emotional processing of the dismissal and restores confidence.
• It offers concrete help with career orientation and labour market strategy.
• Employers show social responsibility by supporting the transition to new work.
• A clear budget or duration can be written into the VSO.

In practice, this means you do not face the labour market alone. A coach helps you translate your experience into a strong profile, identify suitable sectors and prepare for applications and networking.

Financial and legal aspects: severance, final settlement and notice period

Because there is no court decision in dismissal by mutual consent, you and your employer must agree on financial and legal details yourselves. A key element is the transition payment (transitievergoeding), the statutory minimum severance in many Dutch dismissal cases. In a VSO, the parties may agree to pay at least this amount, increase it or convert part of it into an outplacement budget.

In addition, the final settlement is arranged: outstanding holidays, holiday allowance, bonuses and other entitlements. The contractual or collective agreement (cao) notice period also plays an important role. For WW, the UWV applies a so-called fictitious notice period. If the end date in your VSO is too early, your WW benefits may start later than you expect.

• Transition payment as a baseline, possibly topped up or partly used for outplacement.
• Final settlement of holidays, holiday pay and other outstanding rights.
• Respecting the contractual notice period to avoid gaps in income.
• Checking that the agreement is compatible with WW rules.

It is therefore wise to have both the financial side and the benefit consequences calculated or at least checked, so you have a realistic picture of your situation after the end date.

Step-by-step: from first proposal to signed agreement

The process around dismissal by mutual consent usually starts with a conversation in which the employer announces the wish to end the employment relationship. Often, the employer indicates that a written proposal will follow. Receiving such a message can be stressful and emotional, especially if it comes unexpectedly. It is important not to feel pressured into an immediate decision.

After the initial talk, you will usually receive a draft settlement agreement. At this stage, you have time to think, ask questions and seek advice. Many employees consult both a lawyer and a career coach. While the lawyer focuses on rights, obligations and WW consequences, the coach helps you clarify what you need for your next step. This is also the moment to raise outplacement explicitly and, if necessary, negotiate about it.

• Initial meeting and announcement of the employer’s intention.
• Receiving the draft VSO and taking time to review it.
• Seeking legal and career advice and formulating negotiation points.
• Only signing once you understand and accept all consequences.

A practical example: your employer offers a transition payment but no career support. You might propose to reserve part of the budget for an outplacement programme, because this increases the chance that you will be back in work sooner. Many employers are open to this when they see it as an investment in a respectful departure.

Outplacement in practice after a VSO

Once the settlement agreement is signed and the outplacement arrangement is in place, the actual support starts. With Care4Careers, an outplacement programme typically begins with an intake and a thorough analysis of your situation. Together with a coach, you look at your experience, strengths, values and what you want your next step to look like. This helps transform the dismissal from a setback into a moment of reflection and redirection.

After this, the focus shifts to the labour market. You work on your CV and LinkedIn profile, learn how to present yourself convincingly in interviews and explore networks and vacancies. Depending on your situation, there may also be attention for work-life balance, recovery from stress or burnout and building resilience. The aim is not only to find a job, but to find sustainable work that matches your capabilities.

• Intake and career scan to clarify your starting point.
• Coaching to define a realistic and meaningful career goal.
• Practical job search support: CV, LinkedIn, applications, networking.
• Attention to resilience and sustainable employability.

By combining this structured support with the financial arrangements from your VSO, you create both a financial and a professional bridge to your next phase.

Common pitfalls in dismissal by mutual consent

Because dismissal by mutual consent is based on negotiation rather than a court ruling, there are several pitfalls you should be aware of. One is signing too quickly, driven by emotion or pressure, without fully understanding the impact on your income and benefits. Another is accepting a VSO that does not include any support for your job search, even though you know the labour market may be challenging.

A third pitfall lies in the wording of the agreement. If the VSO states that you resigned voluntarily or that there was serious misconduct, the UWV may deny your WW claim. Also, if the end date is set too early in relation to your contractual notice period, there may be a period without salary and without benefits. Careful review and, if necessary, renegotiation can prevent these problems.

• Avoid signing under time pressure or without independent advice.
• Check that the VSO is WW-safe in terms of wording and notice period.
• Deliberately discuss the need for outplacement or career coaching.
• Ensure that financial arrangements cover the transition period realistically.

By approaching dismissal by mutual consent not only as an ending but also as a negotiated new beginning, you increase your chances of moving on in a way that is both financially and professionally sound.

Conclusion: turning a negotiated ending into a new beginning

Dismissal by mutual consent in the Netherlands offers both risks and opportunities. The absence of a court decision means that the quality of the agreement depends strongly on what you negotiate and how well you are informed. A carefully drafted settlement agreement that respects WW rules, provides a fair financial arrangement and includes outplacement support can turn a difficult situation into a constructive transition.

By combining legal clarity with professional career guidance, you create space to process the dismissal, rediscover your strengths and consciously choose your next step. In that sense, dismissal by mutual consent does not have to be the end of your career story, but can mark the beginning of a new chapter that fits better with who you are and what you want from your working life.