Resigning with a VSO (settlement agreement, vaststellingsovereenkomst) means that you leave your job voluntarily in consultation with your employer, with the arrangements set down in writing. Such an arrangement offers certainty about the financial and legal aspects surrounding your departure. It is essential to understand exactly what resigning with a VSO involves, especially when outplacement plays a role. This article provides clear explanations and practical insights aimed specifically at employees facing this step.
What is a VSO and how does resigning with a VSO work?
A settlement agreement, VSO for short, is a legal document in which employer and employee, in good consultation, set down the terms of the dismissal. Think of the termination date, the financial settlement (such as the transition payment, transitievergoeding), the notice period and any arrangements about outplacement support. Under the Dutch Civil Code, a VSO is only legally valid once both parties have agreed and signed it.
Resigning with a VSO is fundamentally different from unilaterally handing in your notice. When you conclude a VSO you usually retain your entitlement to unemployment benefit (WW), provided all the legal conditions have been properly arranged. This makes it a popular route in the event of reorganisations or when an employment relationship is no longer workable.
An example: Sandra has been working for eight years at a company where her role is being cut. In good consultation, she and her employer decide on a VSO. It sets down that she will receive a transition payment, that her notice period will be respected and that she will receive guidance through an outplacement programme.
Important legal terms and authorities
Various legal terms and authorities play a role when resigning with a VSO. The UWV (Uitvoeringsinstituut Werknemersverzekeringen, the Dutch employee insurance agency) assesses whether you are entitled to unemployment benefit (WW). The transition payment (transitievergoeding) is a statutory payment on dismissal and is usually included in the VSO. Outplacement, often part of the VSO, means that you receive guidance towards new work through a specialised agency such as Care4Careers.
Other common terms are the notional notice period (fictieve opzegtermijn, the period the UWV considers when assessing WW entitlement) and the termination date (when the employment contract ends). It is advisable to understand these terms well before you sign a VSO. You can read more about these terms in the article The role of the notional notice period in a settlement agreement.
Why choose to resign with a VSO?
There are several reasons why an employee chooses to resign with a VSO. The main motive is often certainty: you know in advance exactly where you stand in terms of the financial settlement and support. With a unilateral resignation you have fewer rights, including to unemployment benefit (WW).
Moreover, during the negotiation process you can make extra arrangements, for example about the use of an outplacement programme or a higher payment. This offers the prospect of a fresh start, especially when your role is being cut or the working relationship is strained.
A practical example: Mark, aged 52, sees his role disappear in a reorganisation. By agreeing to a VSO that includes outplacement support, he receives professional help in finding a new job. This gives him peace of mind and something to hold on to during an uncertain period. Read more about the importance of outplacement in outplacement programmes.
The role of outplacement in a VSO
Outplacement is a programme in which you receive guidance towards other work, usually facilitated by an external party such as Care4Careers. When dismissed with a VSO, a budget or programme for outplacement is often included in the agreement. The aim is to support employees in finding new career opportunities that match their experience and wishes.
The process usually consists of career advice, application coaching, networking support and psychological guidance where needed. By including outplacement in the VSO you increase your chances of sustainable work and prevent long-term unemployment.
Curious how such a programme unfolds? Read more about the phases of an outplacement programme and the support you can expect.
Rights and obligations when dismissed with a VSO
As an employee you have the right to refuse a proposed VSO or to negotiate the terms. Employers are obliged to give you sufficient reflection time (at least 14 days after signing). It is also essential that the agreement does not state a culpable reason for the dismissal, in order to safeguard the retention of WW rights.
For employers, there is an obligation to provide honest and transparent information. In practice, it is wise to seek legal assistance or advice before signing a VSO. This prevents unpleasant surprises afterwards, such as the loss of benefit or missing out on an outplacement programme.
Want to know exactly what rights you have? See the overview in the article Settlement agreement and retention of WW rights: what do you need to know?.
Step-by-step plan: resigning safely with a VSO
A careful step-by-step plan helps you enter a VSO process well prepared:
- 1. Explore the alternatives: Consider whether resigning via a VSO is the best option for you. Weigh up alternatives such as internal redeployment.
- 2. Ask for a draft VSO: Have the employer draw up a written proposal.
- 3. Consult a lawyer: Have the VSO checked with regard to your rights, the financial settlement and retention of WW.
- 4. Negotiate the terms: Think of the transition payment, outplacement, notice period and end date.
- 5. Take reflection time: Use the legally required reflection time to consider everything carefully.
- 6. Only sign once everything is right: Only after agreement and a check of the details do you sign the definitive agreement.
You will find extra tips and points of attention in the article Resigning with a settlement agreement: what do you need to know?.
Risks and pitfalls when resigning with a VSO
Although a VSO offers many advantages, there are also potential risks. The biggest danger is the loss of WW rights if the agreement is not drawn up correctly. Arrangements about finances or outplacement can also be too vague, leading to uncertainties afterwards.
Some employees forget to pay attention to the notice period or fail to arrange a good reference. In addition, emotional pressure can play a part when signing an agreement. Always remember that you do not have to make hasty decisions: take your time, seek advice and discuss all your questions.
A real-life example: Fatima signed a VSO without looking into the notional notice period. As a result, she had to wait longer for her unemployment benefit (WW). Information about this pitfall can be found in The role of the notional notice period in a settlement agreement.
Resigning with a VSO during reorganisation or illness
In the event of reorganisations, a VSO is often offered to arrange a collective dismissal smoothly and properly. Extra provisions can then be included in the VSO, such as a more generous severance payment or an extensive outplacement package. This helps employees to take a new step more quickly.
A VSO may also come up in the event of long-term illness. In that case, pay extra attention to your rights concerning the Gatekeeper Improvement Act (Wet verbetering poortwachter) and the WIA (Work and Income according to Labour Capacity Act). The UWV looks critically at the reason for termination. If in doubt, always talk to an expert.
You will find more information about dismissal and outplacement during reorganisation via Dismissal through reorganisation: what does it mean and how do you proceed?. You can read more about dismissal during illness in the article Resigning during illness.
Practical points of attention for outplacement in the VSO
Including outplacement in the VSO calls for clear arrangements. Make sure the amount, the duration and the chosen agency are explicitly included. Preferably choose a recognised specialist such as Care4Careers, which has experience with Dutch legislation, UWV rules and tailored guidance.
Take care that the budget is sufficient for a complete programme and that you are free to choose which outplacement agency you want to work with. Ask for references or examples of successful programmes if necessary. In this way you increase your chances of a successful transition to new work.
For more insight into the costs and approach, see the article about the costs of outplacement programmes.
Summary
Resigning with a VSO offers employees certainty and room to take control of their future, provided the agreement is drawn up carefully. Outplacement often forms an integral part of a VSO, with the aim of sustainable redeployment and personal guidance. Understanding legal terms, involving experts and critically assessing all the terms are indispensable. Keep paying attention to your rights, obligations and practical arrangements, so that you begin your next step from a stronger position.