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Settlement agreement and WW: preserve your benefit entitlement

Settlement agreement and WW: preserve your benefit entitlement

Have you received a settlement agreement (VSO) and are you afraid of losing your unemployment benefits (WW)? The reason for dismissal, your health, and especially the end date can determine if and when UWV grants WW. Have your proposal legally checked before signing.

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Short answer – do you get WW after a settlement agreement?

Yes, after a VSO you can often receive WW. For this, the termination must actually take place at the initiative of the employer, you must not be culpably unemployed, and you must meet the general WW conditions. The fictitious notice period can postpone the start of the benefit. Those who are incapacitated for work upon leaving the job generally do not immediately qualify for WW. Only UWV decides about your benefits.

When do you have the right to WW after a VSO?

A well-drafted VSO can help prevent problems with WW, but it is not a guarantee. UWV assesses the actual circumstances and the conditions of the Unemployment Insurance Act.

The employer has actually taken the initiative for the termination.

There is no urgent reason or other behavior that leads to culpable unemployment.

You lose sufficient working hours and salary and are insured for WW.

You in principle meet the weekly requirement: at least 26 weeks worked in the 36 weeks before your unemployment (with legal specifics).

You are available to accept paid work.

Note: a phrase like “the VSO is WW-safe” is not decisive. If the facts do not match the text, UWV can decide otherwise.

Which formulations are important for your WW?

The VSO must clearly and truthfully state that the employer has proposed the termination, why the employment contract is ending and that there is no urgent reason that makes you culpably unemployed. The end date and financial agreements must also be correctly recorded.

Avoid making false suggestions that you have resigned voluntarily. A standard model or a statement from the employer that unemployment benefits are "guaranteed" does not offer certainty: the decision lies with UWV.

What is the notional notice period for a settlement agreement?

The notional notice period is the period that UWV takes into account as if the employer had terminated the employment contract in the usual way. If the end date is too early, your salary may stop while the unemployment benefit has not yet started.

Calculation example: one month without salary and unemployment benefit

Suppose you sign the VSO on 15 November 2026. In this example, your employer must give two months' notice and termination occurs by the end of the month. In that case, an end date of 31 January 2027 is in principle in line with that period. If you do agree on 31 December 2026, the unemployment benefit can only take effect after the notional notice period. You then risk about one month without pay and without unemployment benefit. This example assumes a regular contract without deviating collective bargaining or contractual rules. The exact period and the first day of unemployment benefits must be calculated individually.

What notice period applies to your employer?

Shorter than 5 years of service: the statutory employer notice period is 1 month.

5 to 10 years of service: 2 months.

10 to 15 years of service: 3 months.

15 years of service or more: 4 months.

The employment contract or collective labour agreement may provide for a different notice period. The correct end date in a VSO must therefore be assessed for your individual situation.

What happens to your unemployment benefit if you are sick?

If you are incapacitated at the end of your employment, you generally cannot immediately receive unemployment benefits (WW): to qualify for WW, you must be available for work. Signing during illness can also terminate your right to continued payment of wages and cause problems with a potential Sickness Benefits Act (Ziektewet) claim.

Reporting yourself fit for work solely to enable a Settlement Agreement (VSO) is not a solution. The actual incapacity to work, the time of signing, and the rights to wages, Sickness Benefits Act, or WIA must be assessed separately. More about the risks during illness: vaststellingsovereenkomst.org/en/settlement-agreement-in-case-of-illness

Extra attention for a temporary contract

A temporary employment contract without a written mid-term termination option requires extra review. If it ends early through a VSO, UWV can only grant WW from the original end date. Before signing, check whether a valid mid-term termination clause exists.

When should you apply for WW?

According to UWV, you can apply for unemployment benefits (WW) from one week before your first day of unemployment and no later than one week after. Submit the application via Mijn UWV, even if you expect to find another job quickly. Keep your signed VSO, employment contract, payslips, and relevant correspondence.

Why have your VSO reviewed before signing?

A small mistake in the initiative, reason for dismissal, or end date can have major financial consequences. Our dismissal specialists review the applicable notice period, the actual dismissal situation, your health, and other departure conditions. If necessary, we negotiate not only a legally correct VSO, but also higher compensation, extended salary, release from work, or the removal of a non-competition clause.

At Vaststellingsovereenkomst.org, experienced legal specialists guide employees through dismissal and settlement agreements. The first consultation is free and without obligation; for further assistance, we agree on costs in advance.

Have your VSO checked for free

Two real-life situations

An end date that causes unemployment benefits to start too late Illustrative example: an employee is offered a VSO with an end date that does not fit the notice period. By agreeing on a later end date, a period without pay and unemployment benefits can be avoided. The effect depends on the individual unemployment benefit conditions.

Sick at signing

Illustrative example: an employee with burnout complaints receives a VSO during reintegration. Instead of immediately agreeing, the entitlements to continued payment of wages, the Sickness Benefits Act and possibly WIA are assessed first. In that situation, it may be wise not to sign the dismissal proposal.

Client experiences

A client describes on our website that the legal guidance helped to secure his unemployment benefit position and to achieve severance pay. Another client mentions the clear communication and support in reaching a good agreement with the employer. These are summaries of existing reviews, not guarantees of a similar outcome. Read client reviews: vaststellingsovereenkomst.org/en/reviews

Frequently asked questions about VSO and WW

1. Am I automatically entitled to unemployment benefits if I sign a VSO? No. UWV will investigate the actual dismissal situation and whether you meet all the unemployment benefit conditions. A correct VSO helps, but does not guarantee benefits.

2. Can the VSO state that the dismissal is my initiative?

If the employer has proposed the dismissal, it must be stated correctly. An incorrect formulation that resembles voluntary dismissal by the employee can cause unemployment problems.

3. What if the notice period is too short?

Then UWV can apply a notional notice period. Your unemployment benefit may start later than the end date of the employment, creating an income gap.

4. Do I get unemployment benefits if I am sick at the end of my employment?

Usually not immediately, because you must be available for work. A VSO during illness can also negatively affect your salary and Sickness Benefits rights.

5. Do I lose unemployment benefits due to a severance payment?

A severance payment generally does not in itself lead to the loss of unemployment benefits. Your right to unemployment benefits depends on the legal conditions and your dismissal situation.

6. When should I apply for unemployment benefits?

From one week before your first day of unemployment and no later than one week afterward, according to UWV. Apply for the benefit via My UWV.

7. Can I receive unemployment benefits after a mutually agreed termination (VSO) with a temporary contract?

That is possible, but with a temporary contract without an interim termination clause, the unemployment benefits can only start after the originally agreed end date. Have this checked in advance.

Official sources

UWV – Unemployment benefits after dismissal: uwv.nl/nl/ww/ww-na-ontslag

UWV – When to be entitled to unemployment benefits: uwv.nl/nl/ww/wanneer-recht-op-ww

About the author – Mr Edwin van Jaarsveld

This article was written by Mr Edwin van Jaarsveld, a specialist in employment law and dismissal cases. He has more than 25 years of experience advising and assisting employees and employers in matters involving dismissal, employment disputes, illness and settlement agreements.

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