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Having a settlement agreement drafted by a specialized SME lawyer typically costs between €250 and €750, depending on the complexity. The process is clear: the employer determines the terms (end date, compensation, exemption), the lawyer drafts these into text that secures unemployment benefits, and the employee is presented with the agreement with a cooling-off period. For the employee, it is usually not a matter of having it drafted but of having it reviewed — the employer often covers those costs. Below are the costs, the steps, and when to outsource.
The short answer
- Drafting costs: €250 – €750 with an SME lawyer, depending on complexity.
- Checking costs (employee): €150 – €400, often reimbursed by the employer.
- Process: determine conditions → draft text → offer → cooling-off period → sign.
- Turnaround time: text within a few working days, plus a 14-day cooling-off period.
- Core: the text must correctly regulate the four points of the Unemployment Insurance Act and the cooling-off period.
How much does it cost?
The price depends on who drafts it and how complex the situation is:
- Filling in the standard form: cheap or free, but risky if you cannot assess the unemployment benefit points yourself.
- SME lawyer, simple situation: €250 – €450 for a tailor-made agreement.
- SME lawyer, complex situation: €450 – €750 in case of illness, high remuneration, non-compete clause, or statutory director.
- Employee check: €150 – €400, usually reimbursed by the employer as part of the deal.
The process step by step
- Determine the conditions. The employer establishes: reason for termination, desired end date, amount of compensation, and whether or not there is an exemption from work.
- Calculate the notice period. The end date is aligned with the applicable (fictitious) notice period so that unemployment benefits connect.
- Drafting the text. The lawyer incorporates the terms and conditions into an agreement that is neutrally worded and states the cooling-off period.
- Offer. The employer presents the agreement. The employee is given time and may seek advice.
- Cooling-off period. After signing, a 14-day right of withdrawal applies (Art. 7:670b BW).
- Settlement. On the end date: final settlement, compensation, certificate, return of property.
What needs to be included correctly?
A sound agreement regulates, in any case:
- Neutral termination without urgent cause or fault — for unemployment benefits.
- Employer initiative explicitly mentioned.
- End date , taking into account the notice period.
- Transition payment as a benchmark, possibly including a component exceeding the statutory minimum.
- cooling-off period , stated in writing.
- Exemption, vacation days, certificate of employment and any stipulations.
- Final discharge as the closing step.
Employer or employee: who arranges it?
The employer almost always drafts the agreement—after all, he takes the initiative to terminate the employment. It is advisable for the employer to have this done by a lawyer, because a typographical error in the unemployment benefit points can cause the deal to fall through or lead to a claim.
The employee has the provided text checked instead of drafting it themselves. This check costs a fraction of the drafting cost, and the costs are often borne by the employer. In this way, both parties safeguard their own interests without duplication of work.
An example from the SME sector
An installation company with eighteen employees wants to dismiss a technician due to a strained working relationship. The employer has an agreement drafted by an SME lawyer (€400): neutral grounds, end date in three months in accordance with the notice period, transition payment plus two extra months, and a fee of €300 for the employee's legal assistance. The technician has the text checked, signs it, and retains his entitlement to unemployment benefits. Total processing time: just over two weeks plus the cooling-off period.
Honest recommendation
As an employer facing a simple, undisputed situation — position eliminated, no sickness, standard compensation — you can use a good template and have the text checked once for unemployment benefit points. That way, you don't have to outsource the entire drafting process.
Do outsource the drafting as soon as there is a risk involved: illness, a statutory director, a non-compete clause, high or unusual remuneration, or a difficult relationship. An error in the unemployment benefit points can easily cost more than the fee. As an employee, always have the text checked — that is the cheapest insurance there is.
Want to know more? View the settlement agreement, read what a settlement agreement is , and view an example with the key provisions.
Frequently Asked Questions
With an SME lawyer, the cost is typically €250 – €750, depending on the complexity. A simple situation costs around €250 – €450; illness, high compensation, or a non-compete clause make it more expensive. A review for the employee costs €150 – €400 and is often reimbursed by the employer.
Almost always the employer, because the initiative for dismissal lies with them. The employee has the provided text checked instead of drafting it themselves. In this way, each party safeguards its own interests without duplication of work.
The text is usually ready within a few working days. This is followed by the submission and signing, plus the statutory cooling-off period of 14 days. Allow approximately two to four weeks in total until the agreement is final.
Often, yes. A contribution towards legal assistance costs (usually €150 – €500) is a common part of the deal, as the employer wants the employee's cooperation. Ask about this explicitly and have it included in the agreement.
Neutral termination, employer initiative, end date with notice period, transition payment, the 14-day cooling-off period, agreements regarding exemption and certificate of employment, and final discharge. Together, these points safeguard unemployment benefits and a proper settlement.
In a simple situation, a template can serve as a starting point, but always have it checked against the four unemployment benefit points and the cooling-off period. An error in this regard can result in the loss of benefits. In cases of illness, high compensation, or special conditions, a template is insufficient.
In the event of illness, a statutory director, a non-compete clause, high or unusual remuneration, or a difficult relationship. In those cases, the risk of a textual error outweighs the fee. As an employee, you have the text checked regardless.
