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Settlement agreement, transition allowance, dismissal

Notice period, WW benefits and settlement agreements

Notice period, WW benefits and settlement agreements

Calculate the correct termination date and avoid a period without salary or WW benefits.

Why does the notice period determine when WW benefits start?

When employment ends through a settlement agreement, UWV considers the notice period the employer should have observed. If no notice period or an insufficient period was agreed, UWV may postpone WW payments until the notional notice period has expired.

The termination date in the settlement agreement should therefore reflect the correct period. Otherwise, an income gap may arise between the final salary payment and the first day of WW benefits.

Settlement agreements and WW benefits

Check this before signing

Do not look only at the number of months. Also check when the period starts, whether notice must take effect at the end of a month, and whether the employment contract or collective labour agreement contains a different rule.

Check the end date

Statutory notice period for the employer

For a permanent contract, the employer's statutory notice period depends on the length of employment.

  • Employed for less than 5 years: 1 month
  • Employed for 5 to 10 years: 2 months
  • Employed for 10 to 15 years: 3 months

Employed for 15 years or more

After 15 years of employment, the employer's statutory notice period is 4 months. Once the employee reaches the Dutch state-pension age (AOW age), the employer's notice period is generally 1 month.

  • 15 years or more: 4 months
  • From the AOW age: generally 1 month
  • Always check the employment contract and collective labour agreement

The contract or collective labour agreement may change the period

An employment contract may provide for a longer notice period. A collective labour agreement may prescribe a different period under certain conditions. Never rely automatically on the statutory table alone.

  • Read the notice clause in the employment contract
  • Check whether a collective labour agreement applies
  • Check amendments and addenda
  • Determine which rule takes precedence

Notice taking effect at the end of the month

Employment usually continues until the end of the month in which the notice period expires, unless another notice date has been agreed in writing. A date exactly one or more months later is therefore not automatically correct.

  • Determine when the settlement agreement is concluded
  • Count the full applicable notice period
  • Apply the agreed notice date
  • Record the correct termination date explicitly

What is the notional notice period?

The notional notice period is the period UWV uses when employment ends by mutual consent without the correct notice period being covered by salary. WW benefits are generally not paid during that period.

  • UWV considers the period that should have applied
  • An early termination date does not bring WW benefits forward
  • Severance pay does not automatically replace the notice period
  • The financial risk often falls on the employee

Example of a possible income gap

If the settlement agreement is concluded on 15 May and a 1-month notice period applies, with notice taking effect at the end of the month, 30 June is a logical termination date. If the contract ends on 31 May, June may pass without salary or WW benefits.

  • Agreement date: 15 May
  • Notice period: 1 month
  • Usual termination date: 30 June
  • Possible first day of WW benefits: 1 July

Special situations

The calculation may differ for a fixed-term contract, a probationary period, summary dismissal, a prior UWV procedure or a different rule in a collective labour agreement. Do not deduct procedure time in a settlement agreement without a proper legal basis.

  • Fixed-term contract and interim termination clause
  • Dismissal during a probationary period
  • Summary dismissal
  • Procedure time before UWV or a collective labour agreement committee

Termination-date checklist

Check the termination date together with the other WW conditions. The correct notice period alone does not make a settlement agreement fully safe for WW purposes.

  • The length of employment is correct
  • The contract and collective labour agreement have been considered
  • The notice date and full notice period have been applied
  • The employer's initiative and the reason for dismissal protect your WW position

More about WW benefits and UWV

Settlement agreements and WW benefits

See all conditions for a settlement agreement that protects your WW entitlement.

Read more

Entitlement to WW benefits

Read when you meet the general conditions for Dutch unemployment benefits.

Read more

Assessment by UWV

See how UWV assesses the terms and reason for dismissal in a settlement agreement.

Read more
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:

Is the termination date in your settlement agreement correct?

Have the notice period reviewed before signing. This can prevent an apparently favourable termination date from later causing an income gap.

Have it reviewed for free

Frequently asked questions

Which notice period applies to my employer?

The statutory period is 1 to 4 months, depending on the length of employment. An employment contract or collective labour agreement may provide for a different period.

What happens if the settlement agreement contains an early termination date?

UWV may postpone WW payments until the notional notice period has expired. This can create a period without salary or WW benefits.

Does severance pay count as salary for the notice period?

Not automatically. Severance pay does not itself correct an improper termination date. Where possible, agree a date that allows salary to continue until the correct notice period ends.

Does the notice period also apply to a fixed-term contract?

A fixed-term contract normally ends on the agreed date. For early termination and WW purposes, check whether interim termination is permitted and which notice period applies.

Can procedure time be deducted from the notice period?

After an actual dismissal procedure, procedure time may be deducted under certain conditions, provided at least 1 month remains. This should not be assumed for an ordinary settlement agreement.

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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