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Check, check, double check

What should be in a settlement agreement? See here our checklist (no replacement for legal advice)

Settlement agreement checklist

3 minuten mr. Mariëlle Ducaat arbeidsrecht voor werkgevers 31 januari 2023 2026

The purpose of a settlement agreement is to make crystal clear arrangements and to properly establish future (uncertain) events with each other. Once a settlement agreement is concluded, it is not easy to get out of it (except the reflection period settlement agreement for the employee).

All the more important, therefore, to properly (have) check whether your settlement agreement is correctly drafted and whether all relevant parts are in it? Below we give you a simple (not exhaustive!) checklist of matters that are important to check before you sign a settlement agreement. Note: the checklist is not exhaustive and only intended to give you an idea of the matters you can pay attention to when reading your settlement agreement. Good legal advice BEFORE you sign a settlement agreement therefore remains always necessary. Not least because every situation is ultimately unique and every reason for a settlement agreement is different.

The checklist for a settlement agreement?

  1. Names and addresses?
    Are all names and addresses of employer and employee correct?
  2. Preamble or recitals?
    In the recitals (considering that:) at least the following should be stated:
    1. The reason for the dismissal;
      For example business economic circumstances, long-term incapacity for work, difference of opinion about the way in which the work should be performed.
    2. That the employer has taken the initiative for the dismissal;
    3. That there is no urgent reason as meant in art. 7:678 BW;
    4. That the legal (or contractual) notice period has been observed;
  3. Mutual consent?
    It must be a termination by mutual consent.
  4. Dismissal or end date of the employment contract
  5. What applies if the employee finds another job earlier than the end date?
  6. Exemption from the work or continue working until the dismissal date? Record vacation days and other leave rights in that period? If the employee is exempted from work, may he already work elsewhere before the dismissal date?
  7. Continue paying salary and emoluments and - whether or not - expense reimbursements until the dismissal date
  8. Use company resources such as lease car, laptop and mobile phone: until which date does the use continue?
  9. Record that a financial final settlement is made, provided and the date of payment
  10. In connection with the final discharge, it is important to record what is and what is not included in the final settlement:
    1. Vacation hours / ADV hours / Time-for-time hours: record or pay out
    2. Vacation allowance
    3. 13th month
    4. Year-end bonus
    5. Variable remunerations such as commission, bonus and profit sharing
    6. Advances
    7. Loans
    8. (To be repaid) study cost reimbursements
    9. Etc.
  11. Is there a right to a supplementary UI-benefit whether or not based on a social plan or dismissal compensation and if yes, how much is this and when is the compensation paid? A clause that besides that no claim exists to the legal transit compensation.
  12. Statement from the employee that he has no commitment or concrete prospect of other work. Sanction if this statement is contrary to the truth: lapse of the right to the dismissal compensation.
  13. Possible reimbursement for costs of legal assistance
  14. Possible reimbursement for outplacement costs
  15. Pension: statement from the employer that he fulfills all obligations arising from the Pension Act and/or from the pension scheme
  16. Termination of the (collective) insurances for employees per the end date, such as e.g. the collective health insurance
  17. Does the employee participate in a choice model employment conditions? How are not yet (fully) executed exchange choices settled?
  18. Manner of internal and external communication about the dismissal
  19. Unabridged maintenance of the confidentiality clause included in the employment contract
  20. Lapse or maintain non-compete clause and/or relationship clause
  21. (Content) testimonial; positive references?
  22. Hand in company property: where, when and with whom?
    1. Lease car
    2. Mobile phone
    3. Desktop / laptop / tablet
    4. Credit card
    5. Keys
    6. Access pass
    7. Company clothing
    8. Information carriers, folders, drawings, documents, etc.
    9. Home work facilities
    10. Tools, etc.
  23. Confidentiality about content termination agreement; but copy to UWV upon application UI-benefit
  24. In case of illness/accident within four weeks after the dismissal date, report this to employer and cooperate with reintegration regulations
  25. Legal reflection period?
    Employee has 14 days within which he/she can dissolve the termination agreement (without
  26. Settlement agreement in the sense of 7:900 BW?
    Indicate that parties interpret the termination agreement as a settlement agreement as meant in article 7:900 of the Civil Code
  27. Final discharge?
    Can both parties actually draw a line under the dispute.
  28. Place and date of signing?
    The date of signing determines the start date of the (fictitious) notice period that the UWV observes for the start of the UI-benefit.
  29. Names both parties correct?
  30. Signature and authority?

Correct AND appropriate settlement agreement?

Apart from the question whether the settlement agreement contains all the above points, it is also (and perhaps especially) important that the settlement agreement also does justice to your situation. For that, it is recommended that you have an experienced jurist look at your settlement agreement and present your specific situation to him/her. We gladly assist you in this. Of course, we will then also check the settlement agreement on the formal-legal but also practical points! 

mr. M.S. Ducaat

mr. M.S. (Mariëlle) Ducaat


Jurist arbeids- en ontslagrecht

Mariëlle adviseert en procedeert namens zowel werkgever als werknemer bij arbeidsrecht gerelateerde onderwerpen. Hierbij kunt u denken aan ontslag (al dan niet middels een vaststellingsovereenkomst) maar ook disfunctioneren en ziekte. Mariëlle maakt zich graag hard voor uw belang. Bij vragen en/of opmerkingen kunt u haar bereiken via ducaat@wolderwijd-juristen.nl of 036 522 7007.

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