Signing a settlement agreement is a big step. You are leaving your current job, and at the same time there are all sorts of questions open about what comes next. One of the most frequently asked questions in that situation is: are you entitled to outplacement, and how exactly does it work? In this article, we give you a clear and honest answer to everything you want to know about outplacement after a settlement agreement.
Whether you have just received a proposal or are already further along in the process, the information below will help you take the next step well prepared. Because a new opportunity starts with the right knowledge.
What is outplacement and what does it involve?
Outplacement is a guidance programme that helps you find a new, suitable position as quickly and purposefully as possible after losing your job. It goes beyond application training: outplacement also includes career reflection, self-insight, personal development and practical guidance in your job search.
During an outplacement programme, you work with a career coach who guides you through questions such as: what do I really want, what are my strengths and how do I position myself in today's job market? The process is always personal and tailored to your situation, ambitions and pace.
Outplacement is not just for people who want to find a new job quickly. It is also valuable for those who want to think about a career switch, are considering entrepreneurship or simply need peace and direction after a period of uncertainty.
What exactly is a settlement agreement?
A settlement agreement is a written agreement between employer and employee that terminates employment by mutual consent. No judge is involved, but both parties agree on the terms of the dismissal, such as the termination date, any severance pay and other arrangements.
The settlement agreement is also known as a termination agreement or VSO. Because you agree to your dismissal with this agreement, it is important that you fully understand what you are signing. You always have 14 days of reflection time after signing to revoke the agreement, without giving any reason.
The settlement agreement may also include additional agreements, such as a non-competition clause, a confidentiality obligation or, conversely, an outplacement payment. It is therefore smart to read the content of the agreement carefully and seek legal advice, if necessary, before signing.
Are you entitled to outplacement after a settlement agreement?
There is no legal right to outplacement after signing a settlement agreement. Yet in practice, it is quite common for employers to offer outplacement as part of the severance agreement, especially in cases of reorganisations or long-term employment.
Whether you are entitled to outplacement depends on a number of factors:
- What is stated in the settlement agreement itself
- Whether a collective agreement applies that makes outplacement mandatory
- Whether your employer has included an outplacement scheme in a social plan
- The duration of your employment and the reason for dismissal
If there is nothing about outplacement in the agreement, you can still negotiate this. Many employers are willing to reimburse outplacement, because it has advantages for them too: it shows that they treat departing employees responsibly. So it definitely pays to start the conversation.
How do you apply for outplacement with a settlement agreement?
You request outplacement by explicitly including it in the negotiations of the settlement agreement. The best time to do this is before you sign the agreement, so that the agreements are in black and white.
Practically speaking, you can follow the following steps:
- Check the draft agreement on mentions of outplacement or a career budget.
- Ask your employer Whether outplacement can be part of the severance agreement if it is not in it.
- View the collective agreement applicable to your sector, as some collective agreements require outplacement upon dismissal.
- Have the agreement checked by a lawyer or union before you sign.
- Choose an outplacement agency yourself if the employer offers a free choice, so you get guidance that really suits you.
Don't wait until after the signing to start talking about this. Once the agreement is signed, the room for negotiation is a lot smaller.
Who pays for the outplacement process after a settlement agreement?
In most cases, the employer pays for the outplacement process. This is common when outplacement is included in the settlement agreement, a social plan or the applicable collective agreement. The employer then reimburses the costs of the process, often directly to the outplacement agency.
Sometimes a career budget or transition budget is agreed, from which you yourself can choose an agency and pay for the process. In that case, you are in control of which counselling you engage, which many people find an advantage.
If there is nothing about outplacement in the agreement and your employer does not pay for it, there are other options. You can use the transitional allowance you receive to fund a course yourself. Moreover, in some situations outplacement is tax deductible as a training expense, but always check with a tax advisor.
What can you expect from an outplacement process?
An outplacement process usually consists of several phases, in which you work with a career coach on self-insight, direction and a concrete step towards a new position. The exact details vary from one agency and one person to another, but the core is always tailor-made personal guidance.
Typical components of an outplacement process are:
- Career reflection: who are you, what do you want and what can you do?
- Mapping your talents, values and ambitions
- Labour market orientation: what does the market look like and where are opportunities?
- Job application training, including CV, LinkedIn and interview preparation
- Networking and activating your professional contacts
- Guidance on making a final choice and landing in a new role
The duration of a trajectory varies. Some people are up and running in a new job after a few months, others take more time to reflect properly before taking the next step. This is perfectly normal and also valuable, as a well-considered choice leads to more job satisfaction in the long run.
How Nieuwkans helps you after a settlement agreement
At Nieuwkans we will guide you with a outplacement programme for employees that is completely tailored to your situation, wishes and pace. We believe everyone is unique, which is why we never offer a standard approach, but always tailor-made.
Here's what you can expect from us:
- Personal coaching by an experienced career coach from Utrecht
- Self-insight through evidence-based methods, including the BrainsFirst methodology
- Support at all stages: from reflection and orientation to applying and landing in a new role
- Flexible pace and content, fully tailored to what you need at the time
- A clear mission: Living Your Own Future, so that you remain sustainably employable in the long term
Whether you want to think about a new direction, get started quickly or are somewhere in between, we are here for you. Contact us and find out what we can do for you together.