Settlement Agreement or Procedure at the District Court: What is smarter?

14 September 2025
Picture of Arslan Advocaten

Arslan Advocaten

Need help urgently?

Choose a location

Settlement Agreement or Procedure at the District Court: What is smarter?

If your employer wants to terminate your employment, this can be done in several ways. Often, a settlement agreement (VSO) is offered. But sometimes the employer chooses a procedure before the district court. For you as an employee, it is important to know: what is wiser in my situation?

In this article, we compare both routes and discuss the benefits, drawbacks, and strategic choices.


Settlement Agreement: Fast and Flexible

A VSO is a termination agreement in which the employer and employee together make agreements about the dismissal.

Benefits of VSO

  • Fast solution – usually finished within a few weeks.

  • Room for negotiation – you can ask for more than the transition payment, such as extra months of salary or a training budget.

  • Unemployment benefits remain – provided the agreement is correctly drawn up.

  • No judge needed – prevents high litigation costs and uncertainty.

Disadvantages of VSO

  • ❌ Employers often make a minimal proposal.

  • ❌ Risk of errors in the agreement (which could cause you to lose your unemployment benefits).

  • ❌ You have to negotiate yourself or engage legal help.


Procedure at the District Court

If there is no agreement, the employer can go to the district court to request termination of the employment contract.

Benefits of procedure

  • ✅ Judicial review – the judge assesses whether the reason for dismissal is valid.

  • Fair compensation possible – in the case of serious culpability on the part of the employer, you can get more than just the transition payment.

  • ✅ Less dependent on negotiation.

Disadvantages of Procedure

  • Lengthy process – often several months.

  • Uncertain outcome – judge can also agree with the employer.

  • Higher costs – litigation costs and risk that the compensation is not higher than the transition payment.


Real-life Examples

  • Example 1: An employee received a meager VSO offer of 2 months salary. He refused and relied on a procedure. The judge awarded him a fair compensation of 6 months salary in addition to the transition payment.

  • Example 2: An employee chose the procedure, but the judge found the dismissal justified. He only received the transition payment and had uncertainty for months.

  • Example 3: An employee negotiated through a lawyer outside of court and got a better arrangement than his colleagues who went to the district court.


Checklist: VSO or District Court?

  • 📄 Is the VSO correctly drawn up (unemployment benefits, notice period, reason for dismissal)?

  • <p data-start="2814" data-end="2863"💶 Is the dismissal payment reasonable or too low?

  • ⚖️ Is there serious culpability on the part of the employer?

  • ⏳ Do you want clarity quickly or can you wait for a procedure?

  • 📝 Do you want to negotiate yourself or do you leave this to a judge?


Frequently Asked Questions (FAQ)

1. Is a VSO always better than a procedure?
Not always. In case of serious culpability on the part of the employer, a procedure may be more advantageous.

2. Do I always get unemployment benefits after a procedure?
Yes, provided you were not culpably dismissed.

3. What is a fair compensation?
An additional compensation besides the transition payment, if the employer has acted seriously culpable.

4. How long does a procedure at the district court take?
On average 2 to 4 months, depending on the pressure and complexity.

5. Does an attorney help me choose?
Yes, a lawyer can assess whether negotiation or litigation is smarter in your case.


Why Arslan Advocaten?

  • Experienced in negotiations on settlement agreements

  • Litigate if necessary before the district court

  • Advice which route will give you the best outcome

  • Always focus on your interest: maximum compensation and certainty


Conclusion

A VSO is usually the fastest and most flexible solution, with room for negotiation. However, a procedure at the district court may turn out better in some cases, especially when the employer has acted seriously culpable. Always seek legal advice before making a choice.

Share this message

Facebook
Twitter
LinkedIn

Categories

Employment law

Recent Posts

Popular Tags

Advocatenkantoor

Need help urgently?

Choose a location