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Settlement agreement, transition allowance, dismissal

Settlement agreement and unemployment benefits

Settlement agreement and unemployment benefits

Never sign just like that! It could cost you a lot of money and even your right to unemployment benefits.
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Never sign just like that!

A frequently asked question: What about a settlement agreement and unemployment benefits? Am I entitled to unemployment benefits if I enter into a settlement agreement? (See for English: settlement agreement, unemployment benefit)
The answer is: YES, a settlement agreement is unemployment benefit safe, provided certain conditions are met. Below you can read more about this.

Never sign a settlement agreement just like that! A lot can go wrong.
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Settlement agreement unemployment benefit safe

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Never sign just like that!

A lot can go wrong, and it could cost you not only a lot of money but even your unemployment benefits.

Requirements for a settlement agreement and unemployment benefits

For a settlement agreement to be unemployment benefit safe, three conditions must be met:

- Voluntary resignation does not entitle you to unemployment benefits. The initiative to terminate the employment contract must come from the employer.
- The dismissal is not related to an urgent reason caused by the employee, such as summary dismissal;
- The notice period applicable to the employer under the employment contract must be fully observed.

Settlement agreement unemployment benefit safe

It is logical that the initiative for the settlement agreement must come from the employer. The legislator wants to prevent employees from too easily resigning or giving up their job in order to claim unemployment benefits.

The second condition is also logical. An employee who behaves seriously misconducted, leading to termination of the employment contract for that reason, should not be entitled to unemployment benefits. Serious misconduct giving urgent cause for dismissal includes, for example: theft, violence, fraud, and being repeatedly late. If an employee simply does not perform well, this is generally not an urgent reason, and a unemployment benefit safe arrangement may be possible.

Voor de derde voorwaarden geldt: tussen het aangaan van de vaststellingsovereenkomst en het daadwerkelijke einde van de arbeidsovereenkomst dient voldoende tijd te zitten. Die voldoende tijd dient minimaal gelijk te zijn aan de opzegtermijn die voor de werkgever geldt. Als de opzegtermijn voor werkgever volledig in acht genomen wordt kan de ww-uitkering direct aansluiten op de laatste salarisbetaling.  
De lengte van de voor werkgever opzegtermijn kan in de arbeidsovereenkomst of via de CAO zijn bepaald. Als dat niet het geval is, geldt de zogeheten wettelijke opzegtermijn.

Vaststellingsovereenkomst bij ziekte

The previously mentioned conditions for entitlement to unemployment benefits when entering into a settlement agreement apply to the termination of an employment contract with a healthy employee. If an employee is ill, they generally cannot claim unemployment benefits upon termination of the employment contract with a settlement agreement. However, there are important exceptions, especially if the illness is only temporary or 'situational,' for example related to workplace tensions. Read more about this on our special web pages: settlement agreement during illness or settlement agreement during burnout.

Ask for help: Our lawyers and legal experts specialize in all aspects of dismissal and settlement agreements. Avoid costly mistakes and call
0900 - 123 73 24 or email for assistance. The first advice is FREE.

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:

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Maybe also interesting?

You have been dismissed or are facing dismissal. This is, of course, a stressful time—one that fortunately you don't deal with on a daily basis. Still, it is precisely during this period that you need to be very careful, because mistakes are easily made and can cost you a lot of money, even your unemployment benefits.

Avoid costly mistakes and contact our experienced employment law lawyers/legal specialists immediately. They deal with dismissal cases on a daily basis.

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