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Settlement agreement, transition allowance, dismissal

Settlement agreement and WW benefits

Settlement agreement and WW benefits

Learn when dismissal by mutual consent may lead to Dutch unemployment benefits and which mistakes can delay or jeopardise those benefits.

Can you receive WW benefits after a settlement agreement?

It is often possible to receive Dutch unemployment benefits under the Unemployment Insurance Act (Werkloosheidswet, WW) after employment ends by mutual consent. A settlement agreement never creates an automatic entitlement. UWV assesses the agreement, the actual dismissal circumstances and the general conditions for WW benefits.

The wording should show that the employer initiated the dismissal and that there is no culpable unemployment. The termination date and notice period also determine when WW benefits may start.

Important

“WW-safe” is neither a guarantee nor an official certification.

Only UWV ultimately decides on entitlement to benefits.

1. The employer takes the initiative

The settlement agreement should clearly state that the employer proposed terminating the employment. Wording that resembles an employee resignation may jeopardise entitlement to WW benefits.

2. No culpable unemployment

Neither the agreement nor the actual circumstances should indicate an urgent cause or conduct that made the employee culpably unemployed. Use an accurate, neutral reason for dismissal.

3. Correct termination wording

Record that the parties terminate the employment by mutual consent and that this is not a summary dismissal. The wording must reflect what actually happened.

4. Correct termination date and notice period

WW benefits do not start before the applicable notice period has expired. If the agreed period is too short, UWV may apply a notional notice period, temporarily creating an income gap.

5. Available for paid work

WW benefits are intended for someone who is unemployed and available for paid work. If you are ill on your first day of unemployment, WW will generally not fit that situation.

The general WW conditions also apply

A legally sound settlement agreement is only one part of the assessment. UWV also considers matters such as loss of working hours, availability for work and sufficient employment history.

What is the notional notice period?

If no notice period or an insufficient period was agreed, UWV may use the period that should legally have applied. The employee may receive no WW benefits during that period, even though the employment has already ended.

Avoid an income gap

  • Check the contract, collective labour agreement and statutory period
  • Calculate from the correct date
  • Record a clear termination date
  • Ensure salary and WW benefits follow on logically

What does not automatically protect your WW entitlement?

Standard wording

The words “WW-safe” or “neutral reason” are no substitute for accurate facts and a complete assessment.

Severance pay

The amount of severance pay does not determine whether the WW conditions are met.

The employer’s agreement

The employer cannot promise WW benefits; UWV makes its own decision.

Additional risk during illness

Do not sign during illness without specialist advice. Termination may affect continued salary payments and sickness benefits, while someone leaving employment while ill is not available for WW purposes.

Fixed-term contracts and other exceptions

Different rules may apply to a fixed-term contract without an interim termination clause, a probationary period, summary dismissal or an existing benefit. Do not use a standard approach in these situations.

When should you apply for WW benefits?

According to UWV, you may apply through Mijn UWV from one week before your first day of unemployment until no later than one week afterwards. Prepare the required documents and information before employment ends.

Which documents should you keep for UWV?

  • The final signed settlement agreement
  • The employment contract and relevant amendments
  • Salary and employment-history records
  • Correspondence about the initiative and reason for dismissal
  • Details of the termination date and final settlement

Learn more about WW benefits and UWV

Notice period and WW benefits

Prevent WW benefits from starting late because of an incorrect termination date.

Settlement agreements and UWV

How UWV assesses dismissal by mutual consent.

Entitlement to WW benefits

The general conditions for Dutch WW benefits.

About the author

Mr. Edwin van Jaarsveld

Edwin van Jaarsveld has over 20 years of experience with dismissal cases and regularly publishes about them.

Edwin’s expertise can also be found on:

Want to prevent risks to your WW entitlement?

Have the reason for dismissal, initiative, termination date and notice period reviewed before signing.

Frequently asked questions

Am I automatically entitled to WW benefits with a settlement agreement?

No. UWV assesses the agreement, the actual dismissal circumstances and the general WW conditions.

What should the agreement say about who initiated the dismissal?

It should state that the employer proposed the termination. The wording must reflect the actual situation.

What happens if the notice period is too short?

UWV may apply a notional notice period. WW benefits may then start after the employment has already ended.

Can I receive WW benefits if I leave employment while ill?

WW requires availability for paid work. Illness creates different risks and may involve other benefits; have this assessed in advance.

When can I apply for WW benefits?

According to UWV, from one week before the first day of unemployment until no later than one week afterwards.

Reviews

Professional advice

Rishico

Your dismissal specialists helped me very well with professional advice following a labor dispute I had with my employer. They clearly have experience with settlement agreements. I definitely needed their assistance to reach a good agreement with my employer. Thank you for the clear communication and all the help!

My thanks

Carla ten Bulte

My thanks to Mr. Geradts,

With great professionalism, decisiveness, speed, and effectiveness, I was able to conclude a good settlement agreement. If your first counteroffer hadn’t been so strong, I wouldn’t have been able to secure even half of it.
Not only because of the money, but certainly also to be able to close my employment history with dignity.
I wish every employee in such a situation could have such a skilled lawyer!

Good severance payment

Metternich

I want to sincerely thank you for the excellent help I received when my employer wanted to terminate my employment contract with a settlement agreement.
You advised me not to sign the agreement and, through negotiations, secured my unemployment benefits and severance payment.

Good advice

Louman

We are an employer in a cyclical industry. Sometimes there is plenty of work, other times too little.
Therefore, we regularly have to part ways with employees for “economic reasons.”
We use the services of vaststellingsovereenkomst.org for this. They know exactly how a dismissal request to the CWI or the subdistrict court should be prepared.

Even in cases where an employee underperforms or behaves inappropriately, we have had good experiences with the lawyers at vaststellingsovereenkomst.org.
They are always available to us with sound advice and have never disappointed us.

Difficult situation

Singh

A dismissal specialist helped me in a very difficult situation. I had been so foolish to sign a letter in an emotional state, resigning myself. Because of this, I lost my salary and wasn’t entitled to unemployment benefits. Vaststellingsovereenkomst.org managed to reverse this. They were able to prove that I signed under pressure and didn’t fully understand what I was doing.
In the end, I left with a good severance payment and now I have another job. Without the help of Vaststellingsovereenkomst.org, I would be in serious financial trouble right now.

Higher severance payment

Gast

I would like to sincerely thank you for the quick and professional assistance.
My employer unexpectedly presented a settlement agreement to terminate my employment contract, but thanks to your help, I received a higher severance payment and compensation for my vacation days.

Excellent assistance provided

Thijssen

Recently, you helped me with my dismissal case. I am very satisfied with the assistance provided. The lawyer was very involved and well-versed in dismissal law. He understood well that I didn’t want a long procedure but wanted the matter resolved quickly.
That solution came swiftly and to my full satisfaction. I didn’t even have to visit your office. Communication was handled by phone and email, so you were always accessible.
My rating: a solid 10.

Dismissed but still well helped

A. van den Berg

Because of a conflict at work that got seriously out of hand, I was dismissed immediately (summary dismissal). I had behaved badly during that conflict, so I could understand why my boss took such a harsh measure.
But I still had to fight the dismissal, because I had no job and no right to unemployment benefits. Fortunately, the dismissal specialist dared to take the risk and started a procedure against my employer on a No Cure No Pay basis. Without the possibility of No Cure No Pay, I wouldn’t have dared to do it myself.
In the end, after two procedures, the lawyer from vaststellingsovereenkomst.org succeeded in securing my right to unemployment benefits and even a severance payment.

Dismissal assistance

van Vliet-Houtman

I worked with great pleasure from the age of 18 at a flower exporter in Aalsmeer.
When I was 54, my employer applied for dismissal through the CWI for economic reasons. At that time, I engaged Mr. Edwin van Jaarsveld from Ontslagspecialist for dismissal assistance.
A dismissal permit could not be avoided because my employer was really in financial trouble. Since my employer offered only a very small severance payment, Mr. van Jaarsveld advised me to start proceedings at the subdistrict court.
That turned out to be successful. The court awarded a severance payment of €94,000.
Thanks to the dedication and excellent legal knowledge of vaststellingsovereenkomst.org, I achieved this great result. Kudos!

Very pleasant experience

Rachel Waki

We are an international company based in Amsterdam. We have engaged Vaststellingsovereenkomst.org as our regular legal counsel and legal assistance for business matters. They successfully concluded our first legal case immediately.
I have found the collaboration with the lawyers at Vaststellingsovereenkomst.org to be very pleasant. We complement each other well regarding key issues and evidence.
Rarely have I experienced such excellent legal service and attention. I would definitely recommend Vaststellingsovereenkomst.org in every respect; their rates are also very reasonable!

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