Fired in the Netherlands? Don’t Sign Anything! The Ultimate 2026 Guide to VSO, Severance & Unemployment
AMSTERDAM / ROTTERDAM – February 9, 2026 | Employment Law Analysis by The Dutch Daily
It usually happens on a Friday afternoon. Your manager schedules a vague meeting titled “Check-in” or “Update”. When you walk in, someone from HR is sitting there too. The air is cold. They don’t offer you coffee.
They tell you it’s not working out. Or maybe it’s a “restructuring.” Or “Performance issues” that were never mentioned before. They slide a document across the table. It has a long, scary Dutch name: Vaststellingsovereenkomst (VSO).
They smile and say: “We want to treat you well. We have prepared a generous package. If you sign this by Monday, we will give you one month of extra pay. After Monday, this offer expires.”
STOP.
Your heart is racing. You are thinking about your rent, your visa, your 30% ruling. The instinct is to sign and be safe. Do not do it. Signing that document immediately is the biggest financial mistake an expat can make.
In the Netherlands, employees have arguably the strongest protection in the world. You hold the cards, not the employer. This Monster Guide will teach you how to turn a firing into a “Golden Handshake,” secure months of paid leave (Garden Leave), and protect your visa status.
In This Survival Guide:
- 1. The Golden Rule: Why You Never Sign Immediately
- 2. HR Psychology: The “Monday Deadline” Bluff
- 3. What is a “Vaststellingsovereenkomst” (VSO)?
- 4. The Negotiation Checklist: Get More Money
- 5. Real Math: How Much Cash Will You Get? (Scenarios)
- 6. The Tax Trap: How Much Severance Do You Keep?
- 7. The Dream: What is “Garden Leave”?
- 8. Unemployment Benefit (WW): Do You Qualify?
- 9. The Visa Nightmare: HSM & 30% Ruling Risks
- 10. Mass Layoffs: What is a “Sociaal Plan”?
- 11. Leaving NL? Can You Take Your WW Benefit?
- 12. The Illness Trap: Never Sign if Burned Out
- 13. Free Money: Legal & Outplacement Budgets
- 14. TEMPLATE: The Email to Send HR
- 15. FAQ: References & Stock Options
1. The Golden Rule: Why You Never Sign Immediately
When an employer wants to fire you, they have two difficult paths:
- UWV Permission: They must prove economic necessity to the government (takes 3-4 months).
- Court (Kantonrechter): They must prove you are dysfunctional. This requires a “Performance Improvement Plan” (PIP) of at least 6 months. If they haven’t done a PIP, they will lose in court.
Both paths are slow, expensive, and uncertain. That’s why they prefer Option 3: Mutual Agreement (VSO). They need your signature to avoid the hassle.
“I am surprised by this news. I need time to process it and review this document with my legal advisor. I will get back to you next week.”
Take the paper, walk out, and breathe. You are now in negotiation mode.
2. HR Psychology: The “Monday Deadline” Bluff
You need to understand the psychological warfare HR uses. They are trained to make you feel powerless.
Common Tactics used against Expats:
- The “Time Pressure” Bluff: “This generous offer is only valid until Monday at 5 PM.”
Reality: This is a lie. The offer will still be there on Tuesday, Wednesday, and next month. They want you to panic and sign before you talk to a lawyer.
- The “Visa” Threat: “If you don’t sign, we have to report you to the IND immediately.”
Reality: False. They can only report you once the contract officially ends. Negotiating does not endanger your visa.
- The “Bad File” Threat: “If we go to court, we will expose your bad performance.”
Reality: Unless you stole money or hit someone, the Dutch courts favor the employee. “Average” performance is not grounds for instant dismissal.
3. What is a “Vaststellingsovereenkomst” (VSO)?
A Settlement Agreement (VSO) is a contract where you and your employer agree to end the employment relationship by mutual consent.
For a VSO to be safe for you (and ensure you get unemployment benefits), it MUST contain these “Magic Sentences”:
- Initiative: It must state the initiative came from the employer. (“At the initiative of the employer”).
- No Urgent Cause: It must state there is no “urgent cause” (dringende reden) like theft or violence.
- Notice Period: It must respect the legal notice period. If they fire you today (Feb 9), and your notice period is 1 month, the contract cannot end before April 1st.
If these are missing, the UWV will deny your unemployment benefits. Never write your own resignation letter!
4. The Negotiation Checklist: Get More Money
The first draft of the VSO is always a “lowball” offer. It is just the starting point. Here is what you negotiate for:
A. Transition Payment (Transitievergoeding)
This is the legal minimum severance.
Formula: 1/3 of your gross monthly salary (including holiday allowance and 13th month) for every year of service.
Goal: Demand a multiplier. If the company has no grounds to fire you, ask for 1.5x or 2x the legal transition payment. This is called the “Billijke vergoeding” leverage.
B. Notice Period (Opzegtermijn)
Legally, they must give you 1 month notice (if employed <5 years).
Goal: Negotiate an “End Date” that is 3 or 4 months in the future. You stay on the payroll, keep accruing holiday pay, and search for a job while paid.
C. Release from Work (Vrijstelling van werk)
This is crucial. You want to be “Exempt from work duties” until the end date.
Goal: You stop working today, but get paid until May 1st. This gives you time to heal and job hunt.
D. Final Discharge (Finale Kwijting)
Be careful. This clause says “We owe each other nothing else.”
Check: Before agreeing to this, make sure all your holiday days, bonus, and expense claims are paid out.
5. Real Math: How Much Cash Will You Get? (Scenarios)
Let’s calculate the real numbers so you know what to aim for.
| Scenario | Profile A (Junior) | Profile B (Senior Expat) |
|---|---|---|
| Profile | 2 Years Service, €3,500 Salary | 7 Years Service, €7,000 Salary |
| Legal Minimum (Transition) | €2,333 (approx) | €16,333 (approx) |
| Negotiated Goal (1.5x) | €3,500 | €24,500 |
| Notice Period Value | 2 Months Paid (€7,000) | 4 Months Paid (€28,000) |
| Total Value of VSO | ~ €10,500 | ~ €52,500 |
Conclusion: Never settle for just the legal minimum. The “Notice Period” while on Garden Leave is often worth more than the severance itself.
6. The Tax Trap: How Much Severance Do You Keep?
Expats often calculate: “Cool, I get €20,000 severance!” and spend it mentally.
Reality Check: Severance pay is considered “Income from current employment” (Box 1).
The Tax Rate: It is taxed at the highest marginal rate.
- If your total income is below €76,000: 37% tax.
- If your total income is above €76,000: 49.50% tax.
So, that €20,000 might actually be only €10,000 in your bank account.
7. The Dream: What is “Garden Leave”?
Garden Leave is the Holy Grail of firing. It means you remain employed (receiving salary) but you are forbidden from coming to the office or contacting clients.
Why employers agree to it: They don’t want a demotivated, angry employee accessing sensitive data or lowering team morale.
Why you want it: You get 100% salary to sit at home, fix your CV, learn Dutch, or just rest. It is effectively a paid holiday.
Strategy: Ask for it explicitly in the VSO negotiation. “I agree to leave, provided I am placed on Garden Leave effective immediately.”
8. Unemployment Benefit (WW): Do You Qualify?
If you are an expat, you are entitled to WW-uitkering (Werkloosheidswet) just like a Dutch citizen, provided you meet the “We-ken-eis” (Weeks Condition).
| Requirement / Detail | The Rule |
|---|---|
| Eligibility | You worked at least 26 weeks in the last 36 weeks. |
| Duration | Minimum 3 months. Generally 1 month of benefit for every year worked. (Max 24 months). |
| Amount | 75% of daily wage (first 2 months), then 70%. |
| Cap (2026) | Max daily wage is approx €282. Max monthly benefit is around €6,100 gross. |
Crucial: You must apply at UWV.nl (using DigiD) within 1 week of your last official employment day.
9. The Visa Nightmare: HSM & 30% Ruling Risks
For Highly Skilled Migrants (Kennismigrant), getting fired is scarier because of the residence permit.
The 3-Month Search Period
Good news: You do NOT have to leave immediately. You have a 3-month search period starting from your last day of employment.
Strategy: Negotiate a longer notice period in your VSO. If your contract ends May 1st, your search period ends August 1st. This buys you time.
The 30% Ruling Risk
Bad News: The 30% ruling applies only to employment income. It does NOT apply to your WW benefit (unemployment pay). Your WW will be taxed at normal rates.
The Gap Rule: If you find a new job within 3 months, your 30% ruling can be transferred to the new employer. If the gap is longer than 3 months, you lose the 30% ruling forever.
10. Mass Layoffs: What is a “Sociaal Plan”?
Sometimes it’s not just you. Big tech companies (Booking, Philips) do mass layoffs (Reorganizations).
The Role of the Works Council (OR):
If a company fires more than 20 people, they must consult the Works Council (Ondernemingsraad). The OR negotiates a “Sociaal Plan”.
This plan sets standard rules for everyone (e.g., “Everyone gets Formula A x 1.8”).
Advice: If there is a Social Plan, individual negotiation is harder but not impossible. The Social Plan is usually the “floor,” not the “ceiling.”
11. Leaving NL? Can You Take Your WW Benefit?
Many expats decide: “I’m done, I’m going back to Spain/Turkey/India.” Can you take your unemployment money with you?
- Within EU/EEA: YES. You can export your WW benefit for 3 months (extendable to 6) while you look for work in another EU country. You need Form PD U2 from the UWV.
- Outside EU (e.g., Turkey/USA/India): NO. Generally, you cannot export WW benefits outside the EU. The moment you deregister (uitschrijven) from the municipality, your benefit stops.
- Exception: If you are moving to a treaty country, check specifically. But usually, deregistration = zero income.
12. The Illness Trap: Never Sign if Burned Out
Why?
1. In the Netherlands, it is almost impossible to fire a sick employee (Opzegverbod). You have 2 years of salary protection.
2. If you sign a VSO while sick, the UWV considers it a “Voluntary Resignation during illness” and will DENY your sickness benefits. You will be left with €0 income.
Advice: If you are burned out, call the Arboarts (Company Doctor) immediately. Do not talk to HR about separation.
13. Free Money: Legal & Outplacement Budgets
You might think: “I can’t afford a lawyer.” Reality: You don’t have to pay.
1. The Legal Budget (Juridische Kosten)
It is standard practice for the employer to pay.
The Ask: Ensure the VSO includes a clause: “Employer will reimburse legal costs up to €1,500 (excl. VAT).”
2. The Outplacement Budget
You can also ask for an “Outplacement Budget” (e.g., €1,000 – €2,000).
What is it for? Career Coach, LinkedIn optimization, or Dutch lessons.
Tip: If you don’t use it, ask if it can be converted into extra Gross Salary (Bruto loon).
14. TEMPLATE: The Email to Send HR
Don’t know what to write after the meeting? Copy and paste this. It is professional, firm, and buys you time.
Subject: Settlement Agreement / [Your Name]
Dear [HR Name],
Thank you for the conversation earlier today and for providing the draft Settlement Agreement (Vaststellingsovereenkomst).
As discussed, I was surprised by this development. Given the legal and financial implications of this document, I need time to review it carefully and seek professional legal advice to ensure my rights are protected.
I will not be able to provide a response by your suggested deadline of [Monday]. My legal advisor will review the document in the coming days, and we will revert with our feedback as soon as possible.
In the meantime, I remain available for my duties, unless you prefer to place me on garden leave immediately.
Kind regards,
[Your Name]
15. FAQ: References & Stock Options
Q: Can they enforce my Non-Compete Clause (Concurrentiebeding)?
A: Usually, yes. BUT, in a VSO negotiation, you can demand that they waive it. Ask for it to be fully deleted.
Q: What about my Stock Options / RSUs?
A: Read your “Plan Rules” carefully. Usually, if you are a “Good Leaver” (Mutual Agreement), vesting might accelerate. If you are a “Bad Leaver” (Fired for cause), you lose them. This is a huge negotiation point for Tech workers.
Q: Can I keep my laptop/phone?
A: Everything is negotiable! Many expats successfully negotiate to keep their MacBook or iPhone as part of the deal.
👔 Firing Vocabulary
Don’t let them confuse you with Dutch legal terms.
| Dutch Term | Pronunciation | Meaning | Context |
|---|---|---|---|
| Vaststellingsovereenkomst | Vast-stel-lings-over-een-komst | Settlement Agreement | The “VSO”. The contract to end the job. |
| Transitievergoeding | Tran-si-tie-ver-hoo-ding | Transition Payment | The legal severance pay (1/3 monthly salary per year). |
| Vrijstelling van werk | Vray-stel-ling | Exemption from work | Garden Leave (Paid leave without working). |
| Sociaal Plan | So-see-aal Plan | Social Plan | Rules for mass layoffs. |
📊 Official Sources
Verified information based on Dutch Employment Law (Burgerlijk Wetboek 7).
| Source | Topic |
|---|---|
| Rijksoverheid.nl | Dismissal via Settlement Agreement rules. |
| UWV.nl | Unemployment benefit (WW) conditions & Export (Form U2). |
| IND.nl | Residence permit validity after dismissal (HSM). |
| Belastingdienst | Taxation of severance pay (Box 1). |
