Dismissal compensation in settlement agreement

3 minuten mr. Jeroen Kaspers kantoor 29 oktober 2025 2026

Dismissal compensation:

Upon termination of the employment contract, employer grants employee, in replacement of lost or to be lost wages, a gross compensation worth [€]

The dismissal compensation is in almost all cases an important part of a settlement agreement. Because it depends on many different circumstances, it is difficult to determine what a reasonable dismissal compensation is in general. The reason for the settlement agreement is often determining for that. You can imagine that in the case of a dismissal due to business economic circumstances, the dismissal compensation is of a completely different order than when a dismissal actually has no grounded (legal) reason. However, settlement agreements are also concluded in those situations. This often occurs in larger companies that, for reasons of their own, wish to say goodbye to an employee without objective reasons. The reasons then mentioned are often in the lack of soft skills of employees (''Employee does not fit well in the team'' or ''The organization wants to go in a different direction and employee does not fit in that'') while an employee has never noticed anything of that himself. In those cases, ultimately completely different dismissal compensations end up in the settlement agreement than in ''simple business economic cases'' where the negotiation space is often somewhat more limited. By the way, the latter is no reason not to negotiate. Experience shows that a first offer is almost never a final offer. Our jurists therefore gladly help you to get the maximum out of your settlement agreement in a negotiation!

What is a reasonable dismissal compensation?

Because reasons for settlement agreements are manifold, no unambiguous answer can be given to the question what actually a reasonable dismissal compensation is. Every situation is different and must therefore be assessed on its own aspects. We can help you with that. In broad terms, it can at least be said that as minimal starting point the transit compensation is leading for most settlement agreements. However, it is a starting point, which is susceptible to further negotiation. If no dismissal compensation is mentioned at all in a settlement agreement, that in turn smells like culpability on the side of employee (while sometimes there does not have to be any question of that at all). Therefore, it is also for that reason not wise for an employee to sign a settlement agreement without any form of (transit) compensation. Apart from the fact that it is then not an attractive offer financially.

Advice and/or negotiation about your dismissal compensation?

Have you received a settlement agreement and are you curious what a reasonable dismissal compensation would be for you? Or do you know very well what an acceptable proposal would be for you and do you wish someone to negotiate this on your behalf? Then do not hesitate and contact one of our jurists. We always go for the maximum achievable in your settlement agreement and can give you a clear picture and honest advice in advance about realistic and achievable dismissal compensations.

mr. J.A. (Jeroen) Kaspers

Jurist en Mediator

Jeroen is specialist ontslag en arbeidsrecht. Met succes onderhandelt Jeroen bij vaststellingsovereenkomsten of disfunctioneren. Komt u er niet uit? Raadpleeg Jeroen via kaspers@wolderwijd-juristen.nl of 036 522 7007.

Dismissal compensation?!?!?!

Dismissal compensation in settlement agreement

3 minuten mr. Jeroen Kaspers kantoor 29 oktober 2025 2026