Your employer has proposed terminating your employment with a termination agreement. This can be quite unexpected and often raises questions: what exactly does it mean, and what happens to your entitlement to unemployment benefit or your compensation? At this stage, it is important not to sign too quickly, but first to find out whether the agreements are favourable and legally correct for you. We will be happy to help you with that with a free VSO check and no-obligation intake interview. No costs, but clear advice.
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Fast forward to
- Sickness dismissal: this is something an employer should almost never do
- Can your employer offer a VSO during illness?
- How do judges judge the signing of a VSO during illness?
- Termination of employment after 2 years of illness
- VSO in case of illness? Request a free check
- The face behind Transitievergoedingberekenen.nl
- Together, we make the most of your situation
- Frequently asked questions about a VSO during illness
What does a termination agreement entail?
A termination agreement is a document in which you and your employer record that the employment will be terminated by mutual agreement. It therefore does not require a procedure through the UWV or the courts. The agreement includes agreements on the termination date, severance pay, work release and settlement of outstanding holidays, among other things.
In practice, a termination agreement is often set out in a settlement agreement. This is the legal form that the UWV accepts to determine whether you are entitled to WW benefits. It is therefore important that the wording in the agreement is correct and meets the right conditions.
The difference between a termination agreement and a settlement agreement
The terms termination agreement and settlement agreement are often used interchangeably, but they do not mean quite the same thing. Both are about terminating employment by mutual agreement, only the legal angle differs.
| Termination agreement | Settlement agreement | |
| Target | Making arrangements to terminate employment by mutual agreement | Legal recording of the termination and all related agreements |
| Legal status | General term for terminating an employment contract | Legally recognised agreement under section 7:900 of the Civil Code |
| Use in practice | Often used as an informal designation | Is the official legal form accepted by the UWV |
| Importance for WW entitlement | Does not by itself guarantee retention of WW | Can be WW-proofed if the right conditions are included |
| Content | Focuses on practical end-of-service agreements | Contains specific legal wording and clauses required for validity |
Conditions and notice period in a termination agreement
In a termination agreement, you and your employer agree together when the employment ends. The statutory or contractual notice period must be taken into account. This term also applies if you separate by mutual agreement.
The notice period defines the period between the time of signing and the actual end date of employment. The length of this period depends on your working hours or what is stated in your employment contract or collective agreement. It often ranges from one to four months.
It is important that the agreed termination date fits within this timeframe. If employment is terminated earlier, it may affect your connection to a new job or your income.
Entitlement to unemployment benefit in the event of a termination agreement
Whether you are entitled to an unemployment benefit after signing a termination agreement depends on how the agreements are laid down. The UWV looks not only at the existence of the agreement, but especially at the wording of the document. Three conditions play a decisive role:
1. The employer initiates the dismissal |
2. No culpable reason |
3. The correct notice period |
| The agreement must clearly state that the initiative for the termination lies with the employer and that you, the employee, agree to it. If it is worded differently, the UWV may see this as your own dismissal, which will void your right to WW. Phrases such as "mutually decided to terminate" can already lead to confusion. | An employee dismissed on his or her own fault or negligence is not eligible for unemployment benefits. Therefore, your termination agreement should not mention any culpability on your part. Choose neutral wording, for example:"The employment contract ends with mutual agreement at the initiative of the employer."This will prevent any discussion with the UWV. |
The agreed end date of your employment must correspond to the statutory or agreed notice period. If that term is shortened, the UWV may consider the intervening period as own risk, resulting in your WW starting later.
A well-tuned notice period therefore prevents you from being temporarily without income. |
Termination agreement during illness
Are you sick and is your employer proposing to end employment with a termination agreement? If so, be careful. This is because during illness, your employer may not simply dismiss you. A termination agreement may then have major consequences for your income and your entitlement to sickness or WIA benefits.
If you sign while you are still unfit for work, the UWV may see this as voluntary cooperation in dismissal. In that case, your right to wages or benefits is often forfeited. This is why employees during illness are almost always advised against agreeing without legal advice.
After two years of illness, a termination agreement may well be a safe option, provided it is clear that the initiative lies with the employer and proper agreements are included about the end date and any compensation. It is important that you do not just sign it and engage our employment lawyer for a free intake interview and VSO check.
Get your VSO checked for free
Do you doubt whether the arrangements in your termination agreement are fair and legally correct? Our employment lawyers carefully review the document and provide free and clear advice.
Why is the first intake free?
The initial intake costs you nothing, so you can have a free assessment of whether your termination agreement is legally sound and your right to WW is preserved. Does it turn out that adjustments or negotiations are needed? Then we will ensure that the costs are included in the proposal to your employer, so you usually don't have to pay anything yourself.
Can you get more out of your agreement? Then we would be happy to help you
After the initial check, our dismissal lawyers will also support you in the follow-up steps and negotiations with your employer. We not only check whether the agreement is legally correct, but also make sure you get the best out of it financially. That could mean adjusting provisions, negotiating higher compensation or having a positive certificate included.
In practice, in 95% of all cases, the terms can still be improved. The employer's first proposal is rarely the final offer. With our help, you increase the chances of a fairer and more favourable settlement, without unnecessary risks or costs.
Dismissal by mutual consent? I am at your service
I am Robin Sieverdink, employment lawyer and founder of Transition fee calculator.co.uk. In my work, I see daily how employees, when terminating their employment, are too quick to agree to a proposal that is not in their favour. Often out of uncertainty, or because they do not know what their rights are.
My aim is to change that. I listen to your story, explain in understandable language what is legally correct and guide you to a fair and well-founded settlement. In most cases, this costs you nothing: the employer pays the legal fees.
With more than 15 years of experience, I know where there is room for improvement. In the majority of cases, I manage to achieve better terms or higher compensation than the original proposal.
My promises
- I take the time to understand your situation and represent your interests as if it were my own
- In the 95% of cases, I manage to achieve a significantly better settlement with targeted adjustments or negotiations
- The free initial consultation will give you clarity on your termination agreement
- You always know where you stand. I keep you informed step by step and explain each piece of advice in understandable language
- I make sure your rights are really well established
- You get personal and expert legal guidance, with no hidden costs. In most cases, my fees are fully reimbursed by the employer
What else can I help you with?
Frequently asked questions about dismissal by mutual agreement
Dismissal by mutual agreement means that you and your employer decide together to terminate the employment. The agreements are laid down in a settlement agreement (VSO). No proceedings at the UWV or court are therefore necessary.
Yes, you can, but only if the VSO meets the UWV's conditions. It must be clear that the initiative lies with the employer, that there is no urgent reason and that the correct notice period has been used. Therefore, always have your VSO checked before signing.
The employer is not legally obliged to pay a transition compensation in case of dismissal by mutual agreement, but you can negotiate it. Our lawyers will ensure that the amount and calculation of the compensation are correct and that your interests are properly recorded.
Yes, you can do so within 14 days of signing the settlement agreement. This is called the reflection period. Within that period, you can indicate your wish to cancel the agreement without giving any reason.
Then be extra careful. Signing during illness could mean losing your right to wages or sickness benefit. Always have the agreement legally reviewed before signing.
In many cases, yes, especially if you are exempt from work. Nevertheless, this should be fine-tuned as some employers impose conditions on this. We always discuss this during the first intake interview.
When dismissed by mutual agreement, your employment contract ends on an agreed date and your rights to wages and accrual of holidays lapse from that moment. You may then be entitled to unemployment benefit, provided the agreement meets the UWV conditions. The agreements on your compensation, work release and certificate are set out in the settlement agreement.
No, a separate letter of resignation is not necessary. The termination is recorded in the settlement agreement (VSO), which both parties sign. This document replaces the resignation letter and is the official proof of the agreements between you and your employer.