Dismissal through the UWV is an unfamiliar and uncertain route for many employees. You may hear that your employer will “apply for permission from the UWV”, or you may be confronted with terms such as business economic reasons or long-term illness. We explain to you in understandable terms exactly what it entails, what the procedure looks like and whether you are entitled to an unemployment benefit and a transfer fee.
Fast forward to
- When is an industrial dispute?
- What steps can you take in the event of a disrupted working relationship?
- Can you be dismissed due to a labour dispute?
- Dismissal with a settlement agreement (VSO)
- Dismissal procedure through the subdistrict court
- Dismissal in the event of a disrupted working relationship: are you entitled to unemployment benefits?
- Enlist my legal expertise
- Frequently asked questions about dismissal in an industrial dispute
When does a dismissal go through the UWV?
- business economic reasons, such as a reorganisation, work reduction or financial problems;
- long-term disability, when you have been ill for more than 2 years and recovery or return to suitable work proves impossible.
In other situations, such as dysfunction, a labour conflict or culpable behaviour, dismissal does not go through the UWV, but through the subdistrict court or through mutual agreement agreements.
A-ground (article 7:669 paragraph 3 sub a BW)
Dismissal via the UWV for economic reasons
Dismissal via the UWV is most common for business economic reasons. Examples include:
- reorganisation;
- declining sales
- lapsing of operations;
- closing down (part of) the organisation.
In these situations, an employer may only terminate after the UWV has given permission. The UWV assesses not only whether there are economic reasons, but also who is eligible for dismissal. In doing so, it applies the so-called principle of job rotation. This means that age groups are considered within interchangeable jobs, so that the composition of the workforce remains as similar as possible. So you cannot be arbitrarily designated for dismissal.
Yes, in the case of collective dismissal, the individual dismissal test also goes through the UWV in principle. An employer who wants to dismiss several employees for business economic reasons within a short period must take additional steps besides the UWV procedure.
For instance, in case of collective dismissal, there is an obligation to report to the UWV and trade unions involved. These notifications are separate from the assessment per employee. For each individual dismissal, the UWV must still assess whether the conditions have been met, e.g. whether the grouping principle has been correctly applied.
B-ground (article 7:669 paragraph 3 sub b BW)
Dismissal via the UWV after 2 years of illness
After 2 years of illness, an employer may request permission through the UWV to terminate the employment contract. This is only possible if it has been established that returning to your own work or other suitable work within the organisation is not possible.
Before the UWV grants permission, it will consider, among other things
- the duration of incapacity for work;
- the employer's efforts to facilitate reintegration;
- the outcome of any WIA assessment.
Only when these conditions are met can dismissal take place via the UWV. This does not automatically mean that dismissal is always the best or only option. Especially after long-term illness, it is important to have a thorough assessment of what dismissal means for your income, benefits and further options.
1. Application by your employer
The procedure starts with an application for dismissal by the employer to the UWV. In this application, the employer must give detailed reasons why dismissal via the UWV is necessary. Depending on the reason, these might include financial justifications, reorganisation plans or information on long-term disability.
Without this substantiation, the UWV will not grant permission for dismissal.
2. Your defence
Once the UWV has processed your employer's dismissal request, you as an employee will receive a copy of the complete request. You then have 14 days to submit a written defence. In this response, you can explain why you disagree with the dismissal or why, in your opinion, your employer's substantiation is incorrect.
After reviewing your defence, the UWV may choose to conduct a second round of adversarial hearings!
3. Assessment by the UWV
In most cases, the UWV takes about 4 weeks to reach a decision, counting from the time the file is complete.
In the case of dismissal for business economic reasons, this period can be extended. If the UWV needs additional expertise on the sector you work in, it can seek advice from a special dismissal advisory committee. That committee includes representatives of employer and employee organisations. In that case, the assessment may take up to about 5 weeks.
4. The UWV's opinion
Upon completion of the assessment, the UWV decides whether to give the employer permission to terminate the employment. This decision will be recorded in writing. If the decision is positive, both you and your employer will receive the dismissal permit.
Important to know:
- The dismissal permit is valid for 4 weeks. This means that your employer must terminate the employment within this period. If this does not happen, the permit expires and the employer cannot still terminate based on this permission.
- When giving notice, the employer must take into account the applicable notice period. The time taken by the UWV procedure may be partly deducted from this. However, there is an important lower limit: the remaining notice period may never be less than one month.
Are you entitled to a transitional allowance in case of dismissal through the UWV?
Yes, upon dismissal through the UWV, you are in principle entitled to a transition allowance. The indicates that an employee is entitled to a transition payment when the employment is terminated by the employer, which includes dismissal after permission from the UWV. This means that in the case of:
- dismissal for economic reasons, and
- dismissal after 2 years of illness,
the employer is obliged to pay a transition allowance, as long as the initiative for the dismissal lies with the employer and there is no serious culpability on your part.
How high is my transitional compensation in case of dismissal through the UWV?
The amount of the transition allowance depends on, among other things:
- the duration of employment;
- your salary;
- the moment the employment ends.
Calculate directly what amount you are entitled to via our handy reimbursement calculator.
Are you entitled to WW benefits after dismissal through the UWV?
In many cases, you are entitled to WW benefits after dismissal through the UWV. Because the dismissal takes place at the initiative of the employer, you are usually not considered culpably unemployed. This applies to dismissals for economic reasons as well as dismissals after long-term illness. However, you do have to meet the general WW conditions, such as:
- you are available for work after the end of employment;
- You lose at least five working hours per week (or half your working hours);
- you are insured for unemployment insurance.
It is also important that the dismissal is carried out correctly. The notice period must have been correctly applied and the employment must have actually been terminated after permission from the UWV. Any deviation from this may affect when your unemployment benefit starts.
Dismissal via the UWV or by mutual agreement: which is more favourable to you?
| Dismissal via the UWV | Dismissal by mutual agreement (VSO) | |
| Initiative | Employer seeks permission from the UWV | Employer and employee make agreements together |
| Procedure | Formal, written and often several weeks | More informative and usually faster |
| Lead time | On average 4 to 8 weeks | Often within a few days or weeks |
| Employee input | Defence possible, but limited direction | More space to discuss conditions, such as a neutral or positive reference |
| Transition allowance | Statutory law | Legal minimum, but often room to negotiate higher compensation |
| WW entitlement | Secured upon proper termination | Only safe if the settlement agreement is drafted correctly, therefore always have it free check by our lawyer. |
| Flexibility | Little, fixed legal framework | Many, bespoke appointments possible |
My initial advice is free
Enlist my legal expertise
My name is Robin Sieverdink, employment lawyer specialising in dismissal cases and settlement agreements. I help employees facing an employment conflict to regain clarity about their position and make legally correct choices.
When you are dismissed because of a disrupted working relationship, there is often a lot on your mind. I not only check whether agreements are legally correct, but also what the consequences are for your income, your benefits and your future. You will receive honest and clear advice, tailored to your personal situation.
Want to know where you stand and what is wise in your case? Then request a free, no-obligation assessment.
Frequently asked questions about dismissal by the UWV
No, resigning yourself does not go through the UWV. The UWV only assesses applications for dismissal submitted by an employer. If you resign yourself, you terminate your employment on your own initiative.
Note: Resigning yourself will in many cases affect your WW entitlement. The UWV may categorise this as culpable unemployment, leaving you with no or temporary entitlement to WW benefits. It is therefore wise to seek legal advice before taking this step.
Not every dismissal goes through the UWV. In the following situations, the UWV is not the right route:
- dismissal for dysfunction;
- dismissal due to an industrial dispute or disrupted working relationship;
- instant dismissal;
- dismissal during the probationary period.
These forms of dismissal usually go through the subdistrict court or by mutual agreement. It is therefore important to first establish which reason for dismissal your employer uses, as this will determine which procedure applies.
Yes, you may. Looking for other work has no negative consequences for the UWV procedure. In fact, availability for work is an important condition for maintaining your WW entitlement.
Yes, this is a regular occurrence. An employer may choose to propose a settlement agreement (VSO) first. You are not obliged to agree to this. In that case, it is wise to have a proper assessment of whether a VSO is more favourable for you than a UWV dismissal.
If the UWV rejects the dismissal request, your employer may not terminate the employment contract through the UWV. The employer can then only consider another route, such as proceedings at the subdistrict court or making a proposal by mutual agreement.
No, you do not have to agree. In the case of dismissal via the UWV, your employer will request permission from the UWV. You will have the opportunity to defend yourself and explain your position before the UWV makes a decision.
