When an employer and employee decide to terminate the employment, this can be done through dismissal with mutual consent. This almost always happens with a settlement agreement (VSO). The advantage is that both parties make arrangements in good consultation, without a judge or the UWV having to intervene.

But how does dismissal by mutual consent work exactly, what are the advantages and pitfalls, and what should you pay attention to before you sign?

What is dismissal by mutual consent?

Dismissal by mutual consent means that employer and employee agree together to terminate the employment agreement. This is recorded in writing in a settlement agreement.

It is voluntary: neither of the parties is obliged to agree.

How does it work in practice?

1. Employer’s proposal
   The employer prepares a settlement agreement containing the conditions for termination.

2. Negotiation
   As an employee, you can discuss and adjust the conditions, such as the compensation or end date.

3. Signing
   Both parties sign the agreement.

4. Cooling-off period
   The employee always has 14 days to reconsider in order to rescind the agreement.

Advantages of dismissal with mutual consent

• ✅ Quick solution without a procedure at UWV or court.

• ✅ More room for negotiation (for example higher compensation or exemption from work).

• ✅ Preservation of unemployment benefits rights, provided the VSO is correctly established.

• ✅ Less stress than a long legal procedure.

Risks and pitfalls

• ❌ Accepting too low a severance pay.

• ❌ Incorrect termination date causing you to lose your unemployment benefits.

• ❌ Including a negative reason for dismissal (“poor performance”) → threat to your unemployment benefits.

• ❌ Forgetting to delete or limit a non-competition clause or relationship clause.

• ❌ Not including a compensation for legal costs.

Examples from practice

• Example 1: An employee received a VSO with only the transition compensation. After negotiations through a lawyer, he received two extra monthly salaries and exemption from work.

• Example 2: An employee signed too quickly. The UWV denied his unemployment benefits because the notice period was not correct.

• Example 3: During a reorganization, a group of employees received a standard VSO. One employee enlisted legal help and received a higher compensation than his colleagues.

Checklist: dismissal by mutual consent

• 📄 Check the reason for dismissal (should be neutral).

• 📊 Calculate your transition payment and see if you can ask for more.

• 📅 Check the end date and notice period.

• 🔒 Look at the clauses (competition, relationship, confidentiality).

• ⚖️ Always have your VSO checked by a lawyer.

Frequently asked questions (FAQ)

1. Do I keep my right to unemployment benefits in case of dismissal by mutual consent?
Yes, provided the VSO is correctly established and the reason for dismissal is neutral.

2. Can I negotiate about the conditions?
Yes, almost all items are negotiable, from the compensation to the clauses.

3. Am I obliged to sign the agreement?
No, it is always voluntary.

4. What happens if I refuse?
Then your employment continues and the employer must choose another dismissal route.

5. Does my employer pay the attorney costs?
This is common. It is often explicitly included in the VSO.

Why Arslan Lawyers?

• We guide employees through dismissal by mutual consent

• We negotiate for higher compensations and better conditions

• We ensure that your unemployment benefits rights are secured

• Costs often recouped from the employer

Conclusion

Dismissal by mutual consent can be a good solution if you proceed with caution. With the right negotiations and a well-drafted settlement agreement, you can confidently take the next step in your career.