What is a Dutch VSO in dismissal situations?

A Dutch VSO (vaststellingsovereenkomst) is a settlement agreement in which employer and employee jointly agree on how and when the employment relationship ends. The agreement is set out in a written, legally binding document and replaces a court or UWV dismissal procedure. This article explains the core elements of a VSO, how it affects unemployment benefits, and how it can be combined with outplacement support by specialists such as Care4Careers.

Definition: what exactly is a VSO?

A VSO, short for vaststellingsovereenkomst, is a written agreement used to settle a dispute or situation definitively. In Dutch employment law it is most often used to end an employment contract by mutual consent. Instead of the employer unilaterally dismissing the employee, both parties agree on the terms of the termination.

According to Dutch labour law, the agreement is valid if both parties sign voluntarily, the terms are clear and not in conflict with mandatory law. The UWV (the public body administering Dutch social security schemes such as WW and WIA) will later assess whether the wording of the VSO allows the employee to keep their right to unemployment benefits.

A VSO is frequently used in reorganisations, when positions become redundant or when the working relationship has irreparably broken down. In many of these situations, the employer prefers to offer a VSO, sometimes including a structured outplacement programme, rather than initiating a formal dismissal procedure.

Why combine a VSO with outplacement?

From an employer’s perspective, a VSO combined with outplacement offers a respectful and predictable way to part company. It limits the uncertainty, time and cost of litigation and demonstrates care for the employee’s future. For the employee, a well-negotiated VSO provides financial security while outplacement offers practical and emotional support in finding a new role.

Outplacement typically includes personal coaching, labour-market orientation, CV and LinkedIn optimisation, networking strategies and targeted job-search support. When these services are explicitly included in the VSO as a separate budget or as a named programme, both parties know exactly what is provided and for how long.

Care4Careers focuses on Dutch outplacement, second-track reintegration and career coaching. In the context of a VSO, its role is to translate the legal and organisational decision into a concrete, positive next step in the employee’s career, while respecting Dutch legal and UWV requirements.

Key clauses in a Dutch VSO

Although every settlement agreement is tailored, a solid Dutch VSO usually contains a number of recurring clauses. First, it states the termination date and the reason for termination, often formulated in neutral language such as “difference of opinion” or “reorganisation”. This wording is important because the UWV uses it when assessing the WW claim.

Second, the VSO specifies the financial arrangements: the severance payment (typically at least the statutory transition payment), the continued salary until the termination date, and the final payment of outstanding holidays, bonus or other entitlements. In many cases, the agreement also includes a budget for outplacement or explicitly mentions that the employer will fund a programme with a specific provider.

Finally, good VSOs address practical aspects: release from work during the notice period, return of company property, confidentiality, non-disparagement and, where relevant, the handling of non-compete clauses. Clear wording on these points reduces the risk of misunderstandings and allows the employee to focus on the future rather than on disputes about the past.

Impact on Dutch unemployment benefits (WW)

One of the most critical aspects of a VSO is its impact on unemployment benefits (WW). The UWV will only grant WW if the employee is not considered culpably unemployed and if the agreement respects the statutory notice period. This is why the reason for termination, the termination date and certain formulations in the VSO need to be handled with care.

For example, if the text suggests that the employee asked to leave or is at serious fault, the UWV may deny or reduce benefits. Similarly, if the termination date is set too early and does not reflect the statutory notice period, the WW may start later than expected. In practice, experienced HR professionals and legal advisers ensure that the VSO is drafted in a way that aligns with WW requirements.

For employees, it is therefore wise not to sign a VSO impulsively. Taking time to review the agreement, possibly with independent advice, helps safeguard both legal and financial interests. Meanwhile, discussing the inclusion of outplacement support can significantly improve the chances of a swift and sustainable new placement.

How outplacement fits into the Dutch VSO practice

In the Dutch labour market, it has become increasingly common to include outplacement in a VSO, particularly for mid-career and senior professionals or after long service. Outplacement is seen as an investment in employability and as a way to reduce the human impact of dismissal. It also supports the employer’s reputation as a responsible and caring organisation.

Practically, the VSO can either mention a specific provider such as Care4Careers or grant a defined budget that the employee can use for a programme of their choice. A clearly described scope and duration of the outplacement programme helps manage expectations and encourages the employee to use the support actively and early.

Because the Dutch UWV expects WW recipients to actively seek work, participating in an outplacement programme is fully compatible with WW obligations. In fact, it can strengthen the employee’s position by providing structure, documentation of job-search efforts and professional guidance in formulating a realistic career plan.

Summary: VSO as legal framework, outplacement as practical bridge

In summary, a Dutch VSO is the legal framework that records how an employment relationship ends by mutual consent, while outplacement is the practical bridge to a new job or career direction. A well-structured agreement protects rights under Dutch labour law and the WW scheme, and a well-designed outplacement programme helps turn a difficult transition into a constructive next step.

When both elements are thoughtfully combined, employees gain clarity, financial security and professional guidance, and employers demonstrate social responsibility and reduce legal and organisational risk. Care4Careers operates precisely in this space, supporting the human side of dismissal within the boundaries of Dutch law and UWV practice.