Difference between deductions from wages and a settlement
Settlements
These involve amounts that your employee has to pay to you. For example, for housing or fines. You may settle these amounts against wages. Note that you may only settle amounts until the minimum wage.
Deductions from wages
These are amounts you pay for your employee through their salary. For instance, the premium for health insurance or for a supplementary pension scheme. You must have written authorisation from your employee to deduct these amounts. It is not enough to make agreements about this in the employment contract.
But you can also withhold amounts without authorisation from your employee. This concerns amounts that you are legally obliged to withhold. For example, pension contributions and payroll taxes.
More information on deductions and settlements
On Rijksoverheid.nl you will find a fact sheet (in Dutch) with more information on deductions from wages and settlements against wages. For example, whether you can recover traffic fines from your employee. And how attachment of earnings works.