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CAO provisions in your VSO

Which CAO rights apply to your settlement agreement?

CAO provisions and your settlement agreement

3 minuten mr. Jeroen Kaspers Employment Law for Employees Monday 18 May 2026 2026

Have you received a settlement agreement (in Dutch: vaststellingsovereenkomst or VSO) that says nothing about your collective labour agreement? That oversight can cost you money — and rights you are legally entitled to.

A settlement agreement often looks like a standalone document: your employer hands you a text, and that supposedly settles everything. In practice, however, your employment contract rarely stands alone. Very often there is also a collective labour agreement (CAO) that applies, or a social plan that has CAO status. These collective arrangements can grant additional rights — a higher payment, a longer notice period, an outplacement budget or a training budget.

In this column you will read when a CAO applies to your situation, which CAO provisions can influence the content of your settlement agreement, and what happens if your employer tries to deviate from that CAO in your VSO.

When does a CAO apply to your employment contract?

A CAO can apply to your employment contract in several ways. The first route runs through membership: if you are a member of a trade union that concluded the CAO, and your employer is a member of the employers' organisation that signed it, you are directly bound to the CAO under the Collective Labour Agreements Act (Wet CAO).

The second route is the general binding declaration (algemeenverbindendverklaring, or AVV). The Minister of Social Affairs and Employment can declare a CAO generally binding for an entire industry. From that moment on, the CAO applies to all employers and employees within its scope, regardless of membership.

The third route runs through what is known as an incorporation clause in your employment contract. This is a provision stating that the CAO "applies" to your contract. Many employers include such a clause to bring everyone under the same employment conditions, including employees who are not trade union members. It is worth pulling out your employment contract: nine times out of ten, you will find such a clause somewhere in it.

This matters greatly for your VSO. As soon as a CAO applies, its provisions in principle also govern the end of your employment. And that is precisely the moment when many employees forget to check whether the CAO quietly offers more than the statutory minimum.

Unsure whether a CAO applies to your situation?

Mr. J.A. (Jeroen) Kaspers of Wolderwijd Juristen will gladly check with you whether a CAO or social plan applies — and what that means for your settlement agreement. Call 0031 (0)36 522 7007 or e-mail kaspers@wolderwijd-juristen.nl for a no-obligation assessment.

Which CAO provisions can affect your VSO?

If a CAO applies to your employment contract, several of its provisions can directly carry over into your settlement agreement. First, the notice period: many CAOs deviate from the statutory notice period, often in the employee's favour. That period in turn determines when your unemployment benefit (WW) actually starts — the so-called fictitious notice period. A too-early end date in your VSO can therefore leave you without income for weeks.

A second key topic is the severance payment. The statutory transition payment in 2026 is capped at € 102,000 gross, or one gross annual salary if that is higher. But your CAO or social plan may prescribe an additional or higher payment, for example through a multiplication factor (think 1.2 or 1.5 times the transition payment) or its own formula based on years of service and age components.

In addition, many CAOs contain provisions on outplacement support and a training budget. Sometimes you are entitled to a budget of several thousand euros to find a new job or retrain. If these rights are not explicitly included in your VSO, you risk losing them through the final discharge clause.

A social plan can also play an important role. If your employer has made arrangements with trade unions or the works council due to a reorganisation, that plan often forms the basis for your individual VSO. Our page on CAO or social plan and your settlement agreement explains how these arrangements interact. The rule of thumb: the VSO should usually contain at least the terms set out in the social plan.

Finally, we regularly see CAO provisions that look harmless at first glance but become financially relevant upon termination: an anniversary bonus that still falls within the contract term, additional accrued leave days, an above-statutory employer contribution to your pension premium, or a buy-out scheme for unused parental leave. It pays to lay the CAO alongside the VSO in full.

What if your employer deviates from the CAO in your VSO?

A common misconception: "We agreed on something together in the VSO, so that is what applies." That is only partly true. Under a so-called minimum CAO, the employer may deviate in your favour, but not to your detriment. Under a standard CAO, no deviation is allowed in either direction. A VSO clause that deviates to your detriment is in principle null and void — you can simply still rely on the CAO.

An important exception is three-quarter mandatory law (driekwart dwingend recht). For certain statutory rules (such as the notice period under article 7:672 of the Dutch Civil Code and the transition payment under article 7:673b), a CAO may deviate to your detriment. This concerns, for example, a shorter notice period or a lower payment in exchange for an "equivalent provision" such as a work-to-work programme. This is only possible if the social plan has actually been registered as a CAO with the Ministry of Social Affairs and Employment.

Practice shows that employers regularly "forget" to include relevant CAO rights in a VSO — sometimes unintentionally, sometimes deliberately. The result is the same: you sign and, via the final discharge clause, waive rights you were still legally entitled to. A careful legal check before signing is therefore not a luxury.

The questions we ask as a standard: which CAO applies, is there a social plan, how do the offered payment, end date and additional benefits compare to what the CAO or social plan prescribes, and have all entitlements been carved out of the final discharge? Only once those questions are answered can you decide with peace of mind.

Have your VSO reviewed against your CAO rights

Avoid unintentionally giving up rights from your CAO or social plan. Mr. J.A. (Jeroen) Kaspers of Wolderwijd Juristen reviews your settlement agreement carefully and transparently on costs. Call 036 522 7007 or e-mail kaspers@wolderwijd-juristen.nl.

Summary: A CAO or social plan can grant quiet but valuable additional rights on top of the statutory minimum. Under a settlement agreement, your employer may not simply deviate from those rights to your detriment. Always have your VSO checked for CAO compliance before you sign. Wolderwijd Juristen is here to assist you.

mr. J.A. Kaspers

mr. J.A. (Jeroen) Kaspers


Dutch Lawyer and Mediator

Jeroen advices (Dutch and Englisch) clients in the areas Employment Law, Contract Law and Tenancy Law. Please follow Jeroen on LinkedIn or contact him via kaspers@wolderwijd-juristen.nl and +31 36 522 7007.

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