Settlement Agreement and Unemployment Benefits (WW)

You have received a settlement agreement (vaststellingsovereenkomst) from your employer and want to know whether you will still be entitled to unemployment benefits (WW-uitkering). This is a legitimate concern — not every settlement agreement automatically preserves your right to WW. The wording of the agreement, the notice period used and the stated reason for dismissal are all decisive factors. In this article, you will learn exactly what conditions your settlement agreement must meet to safeguard your unemployment benefits, how the fictitious notice period works, what the UWV assesses, and which mistakes to avoid at all costs.

Conditions for keeping your WW rights

To remain eligible for unemployment benefits after signing a settlement agreement, both the agreement itself and your personal situation must meet a number of requirements. The UWV (the Dutch Employee Insurance Agency) reviews your application against these criteria and will reject it if the conditions are not satisfied. There are four key conditions relating to the settlement agreement itself.

1. The initiative must come from your employer

The most important condition is that the settlement agreement must clearly state that the initiative to terminate the employment came from your employer. If the UWV determines that you resigned yourself or that the initiative was yours, your WW application will be rejected on the grounds of culpable unemployment (verwijtbare werkloosheid). In practice, this means the agreement should contain wording such as: "The employer has taken the initiative to terminate the employment agreement" or words to that effect.

The UWV does not only look at the literal text of the agreement. It also considers the surrounding context. If other documents exist — such as an email in which you asked to leave — the UWV may still conclude that the initiative was yours, regardless of what the settlement agreement says. Make sure the entire course of events is consistent with the wording in your agreement.

2. No urgent reason (dringende reden) for dismissal

The settlement agreement must not state an urgent reason for dismissal within the meaning of Article 7:678 of the Dutch Civil Code. An urgent reason is a reason so serious that summary dismissal (ontslag op staande voet) would have been justified, such as theft, fraud, violence in the workplace or persistent refusal to work. If the agreement mentions an urgent reason, the UWV will consider you culpably unemployed and you will lose your right to WW benefits.

This does not mean there should be no reason for dismissal stated at all. On the contrary, it is advisable to include a neutral or business-related reason. Common WW-safe reasons for dismissal include:

• Business or economic reasons (reorganisation, restructuring, cost reduction)
• Difference of opinion regarding the execution of the role
• Disrupted working relationship (provided it is phrased neutrally)
• Elimination of the position or closure of the department

3. Correct fictitious notice period

The third key condition is that the end date of the agreement correctly reflects the applicable statutory or contractual notice period. This is known as the fictitious notice period (fictieve opzegtermijn), which is explained in detail below. If the notice period has not been properly observed, this has direct financial consequences: the UWV will postpone the start date of your WW benefits by the period that was not correctly accounted for.

4. No culpable unemployment

The UWV assesses whether you became unemployed through your own fault. This goes beyond just the text of the settlement agreement. If there are indications that you caused the situation that led to the termination — for example, by consistently refusing to perform your duties or by engaging in serious misconduct — the UWV may conclude that you are culpably unemployed, even if the agreement itself looks correct. The agreement should preferably state explicitly that there is no urgent reason and that you are not at fault.

How the UWV assesses your application

After your employment has ended and you submit a WW application, the UWV carries out a thorough review. Understanding this process helps you ensure your settlement agreement is properly drafted before you sign it.

Step-by-step review process

The UWV examines your application on multiple levels. First, it reviews the settlement agreement itself, checking that the employer took the initiative, that no urgent reason for dismissal is mentioned, and that the notice period has been correctly factored in. Second, the UWV verifies your personal eligibility: the weeks requirement, your availability for work, and whether you are registered as a job seeker.

Importantly, the UWV does not limit itself to the text of the agreement. It may also consider:

• Correspondence between you and your employer — emails, letters, or messages that shed light on who initiated the termination
• The broader context — whether there was a reorganisation, a conflict, or a performance issue
• Your behaviour — whether you did anything that contributed to the termination in a way that could be considered culpable
• Timing — whether the circumstances suggest a genuine termination or a constructed arrangement to obtain benefits

What happens during the assessment

The assessment typically takes several weeks. During this period, the UWV may contact you or your former employer for additional information. It is important that you begin actively applying for jobs immediately after your employment ends, as the UWV can ask about your job search efforts from day one.

If the UWV approves your application, you will receive a decision (beschikking) stating the amount and duration of your WW benefits. If the application is rejected, you will receive a written explanation of the reasons. You have the right to object (bezwaar) within six weeks of the decision.

The fictitious notice period explained

The fictitious notice period (fictieve opzegtermijn) is one of the most important concepts for your WW rights after a settlement agreement. Many employees are unfamiliar with it, yet it can make the difference between receiving your benefits immediately and facing weeks or months without income. The UWV applies the fictitious notice period on the basis of Article 16(3) of the Unemployment Insurance Act (Werkloosheidswet).

What is the fictitious notice period?

In a settlement agreement, the employer does not formally terminate the employment through notice (opzegging). There is therefore no actual notice period observed in the traditional sense. However, the UWV acts as if notice was given and calculates a fictitious notice period. This is the period your employer would have had to observe if they had terminated your employment through the regular procedure.

During the fictitious notice period, you do not receive WW benefits. If the end date in your settlement agreement has been set so that the fictitious notice period falls within it, you will not notice any gap: your WW payments will start immediately after the end date. But if the end date is too early, you will face a period without any income.

How to calculate the fictitious notice period

The length of the fictitious notice period depends on the statutory or contractual notice period that applies to your employer. The statutory notice periods for employers are set out in Article 7:672(2) of the Dutch Civil Code and depend on the length of your employment:

• Less than 5 years of service: 1 month notice
• 5 to 10 years of service: 2 months notice
• 10 to 15 years of service: 3 months notice
• 15 years or more: 4 months notice

Note: your employment contract or applicable collective labour agreement (cao) may specify a different notice period. Always check this. A contractually different notice period may take precedence over the statutory period, provided it meets the requirements of Article 7:672 of the Dutch Civil Code. For example, the employee's notice period may not exceed six months, and the employer's notice period must be at least double that of the employee. In some cases, deviations are only permitted through a collective labour agreement (cao). Not every longer contractual notice period is therefore automatically valid.

The severance payment is not deducted

A common misconception is that the severance payment in your settlement agreement can be offset against the fictitious notice period. This is no longer the case. Before 2016, the severance payment could be deducted from the fictitious notice period. Since the introduction of the Work and Security Act (Wet werk en zekerheid), this deduction has been abolished. The amount of your severance payment is therefore entirely separate from the fictitious notice period. Keep this in mind during negotiations.

What happens if conditions are not met

If your settlement agreement does not meet the conditions described above, the consequences can be significant. Understanding these risks helps you appreciate why a professional review of your agreement is so important.

WW application rejected entirely

If the UWV finds that the initiative for the termination was yours, or that there was an urgent reason for dismissal, your WW application will be rejected in full. This means you will receive no unemployment benefits at all. You would then need to fall back on other income, savings, or potentially social assistance (bijstand), which has much stricter conditions and a significantly lower payment.

Delayed start of benefits

If the fictitious notice period was not correctly factored into the end date, the UWV will not reject your application outright, but will postpone the start date of your WW benefits. You will eventually receive the full duration of benefits, but the start will be delayed by the period that was not properly observed. During this gap, you will have no income from WW. Depending on the length of the notice period, this can mean one to four months without any benefits.

Partial sanction or investigation

In some cases, the UWV may not reject your application entirely but may impose a partial sanction, for example a temporary reduction of your benefits. This can happen when the circumstances are ambiguous — for instance, when it is not entirely clear whether you or your employer took the initiative. The UWV may also launch a more detailed investigation, which can further delay the processing of your application.

Duration and amount of WW benefits

The duration and amount of your WW benefits after a settlement agreement are exactly the same as for any regular WW claim. The fact that your employment ended through a settlement agreement rather than through formal notice makes no difference, provided the agreement meets all conditions.

Amount of WW benefits

Your WW benefit is calculated based on your daily wage (dagloon), which is determined using your income in the year prior to your unemployment (the reference year). The benefit amounts to:

• First two months: 75% of your daily wage (up to the maximum daily wage)
• From the third month onwards: 70% of your daily wage (up to the maximum daily wage)

The maximum daily wage is set annually by the Ministry of Social Affairs and Employment. You can find the current amount on the UWV website. Your WW benefit will never exceed the applicable percentage of this annually determined maximum daily wage.

Duration of WW benefits

The duration of your WW benefit depends on your employment history (arbeidsverleden). There are two components:

• Basic benefit: if you meet the weeks requirement (26 out of the last 36 weeks worked), you are entitled to a minimum of 3 months of WW.
• Extended benefit: if you also meet the years requirement (jareneis) — having worked sufficiently in 5 of the last 6 calendar years — the duration is extended. The WW duration is calculated based on your employment history, which consists of your actual employment history (verifiable years in which you worked) and your fictitious employment history (the years from your 18th birthday until 1998, which are counted automatically). For each full year of employment history, you accrue 1 month of WW entitlement, up to a maximum of 24 months.

Obligations during WW

While receiving WW benefits, you must fulfil a number of obligations to keep your entitlement:

• Actively apply for jobs: you must demonstrably be looking for work. The UWV expects a minimum of four job search activities per four-week period.
• Accept suitable work: after six months of WW, the definition of ‘suitable work’ is broadened. This means you must search more widely, including for positions below your level or outside your field. However, the UWV still takes into account factors such as your health, travel time, care responsibilities and — to a limited extent — your education level and salary. Not all work is therefore automatically considered suitable.
• Report income: if you earn any income from (temporary) work, you must report this to the UWV. Your benefit will be adjusted accordingly.
• Remain available: you must be reachable and available for the labour market. Holidays must be reported to the UWV in advance.

Registration with UWV

After signing a settlement agreement and once your employment has ended, you must take action yourself to apply for WW benefits. The UWV does not do this automatically. Below is a step-by-step overview of the process.

Step 1: Register as a job seeker

You must register as a job seeker with the UWV no later than the first working day after the end of your employment. You do this via werk.nl. Late registration can affect the start date of your benefit. As a general rule, the UWV does not grant benefits retroactively if you register late. However, in exceptional circumstances — such as illness, incorrect information provided by the UWV, or force majeure — the UWV may make an exception. Always register as soon as possible.

Step 2: Submit your WW application

After registration, you can apply for WW benefits digitally via uwv.nl. Have the following documents ready:

• A copy of the signed settlement agreement
• Your most recent payslip or annual income statement (jaaropgave)
• Your employment contract
• Any annexes or addenda to the settlement agreement

Step 3: Assessment and decision

The UWV assesses your application based on the conditions described in this article. The assessment typically takes several weeks. During this time, continue applying for jobs and keep a record of your efforts. After approval, you will receive a decision letter stating the amount and duration of your benefits. The first payment usually arrives within four to six weeks after the end of your employment, provided the fictitious notice period was correctly factored in.

Frequently asked questions about settlement agreements and WW

Will I receive unemployment benefits if I sign a settlement agreement?

In most cases, yes — provided your settlement agreement meets the key conditions. The agreement must state that the employer took the initiative, there must be no urgent reason for dismissal, and the fictitious notice period must be correctly reflected in the end date. You must also meet the standard WW requirements, such as the weeks requirement and being available for work. If you are unsure whether your agreement is WW-safe, have it reviewed for free by our lawyers.

What is the fictitious notice period and why does it matter?

The fictitious notice period is the notice period your employer would have had to observe if they had terminated your employment through the regular procedure. The UWV applies this period when assessing your WW application. If the end date in your settlement agreement falls before the fictitious notice period expires, your WW benefit will not start until after the period has passed. This can leave you without income for weeks or even months. By choosing the correct end date, you can avoid this entirely.

Can the UWV reject my WW application after I signed a settlement agreement?

Yes, the UWV can reject your application if the settlement agreement does not meet the requirements. The most common reason for rejection is that the initiative did not clearly come from the employer, or that an urgent reason for dismissal is stated or implied. Rejection can also occur if you do not meet the weeks requirement or if you are not available for the labour market (for example, due to illness). Having your agreement professionally reviewed before signing significantly reduces this risk.

How long before I receive my first WW payment after a settlement agreement?

After submitting your WW application, the UWV typically takes several weeks to complete its assessment. If the fictitious notice period has been correctly reflected in the end date, you can expect your first payment within four to six weeks after the end of your employment. If the notice period was not correctly factored in, the start date of your benefits will be postponed, and it will take longer before you receive your first payment.

Do I have to repay my severance payment if I receive WW benefits?

No, you do not have to repay your severance payment if you receive WW benefits. The severance payment and WW benefits are entirely separate. The UWV does not deduct the severance payment from your WW benefit. You receive both: the agreed severance payment and your WW benefit. Do keep in mind that the severance payment is taxed as income.

What happens if I am ill when my employment ends under the settlement agreement?

If you are ill at the end of your employment, you will not be directly eligible for WW benefits because you are not available for the labour market. Instead, you may be able to apply for sickness benefits (vangnet Ziektewet-uitkering) from the UWV. Once you have fully recovered, you can then transition from sickness benefits to WW. There are also situations where you leave employment while ill but are declared fit shortly afterwards, allowing you to apply for WW benefits directly. Illness therefore does not necessarily exclude WW, but it does change the route to get there. However, signing a settlement agreement while you are ill carries additional risks: the UWV may impose a sanction for a so-called detrimental action (benadelingshandeling), because you voluntarily gave up your employer's obligation to continue paying your salary during illness. Always seek legal advice before signing a settlement agreement while ill.