Does your employer want to terminate your employment through a settlement agreement (VSO)? If so, it is important that you pay close attention to the terms so that your entitlement to unemployment benefit is not jeopardised. Incorrect wording or missing the right notice period can have major financial consequences. Request a free VSO check immediately and get personal advice from our lawyer. Submit your request before 17:30 on working days and you will receive advice within 30 minutes.
What is the relationship between a settlement agreement and WW?
When your employer wants to terminate employment, it is often done through a settlement agreement (VSO). This is an agreement setting out arrangements for the resign. For your right to WW benefit, the content of this agreement is very important. This is because the UWV will assess whether you have become involuntarily unemployed and whether the right conditions have been included. For example, if it states that you resign yourself or if the correct reason for termination is missing, your WW claim may be rejected.
On the contrary, a properly drafted VSO ensures that you remain entitled to unemployment benefits without any problems.
Conditions for WW benefit upon dismissal with a VSO
To after a settlement agreement qualify for WW benefits, the UWV applies the following conditions:
- The dismissal must be at the initiative of the employer: you must not have requested the dismissal yourself.
- No pressing reason: there must be no misconduct or work refusal, for example, that would make you culpably unemployed.
- Availability for work: you must be available for new work immediately after the end of your employment.
- Active job search obligation: you must be able to show evidence of applying for jobs during your WW period.
- Correct wording in the VSO: the agreements must be drafted in such a way that your WW entitlement is not jeopardised.
Other conditions for WW benefit
In addition to the specific rules around an WW after a settlement agreement, general conditions of the UWV apply to be entitled to WW benefits:
- You are actually unemployed: your employment contract has been terminated and you no longer receive wages from your employer.
- You meet the weeks requirement: in the 36 weeks preceding your dismissal, you worked for at least 26 weeks.
- You do not refuse suitable work: you accept reasonable jobs that match your knowledge, experience and abilities.
- You are fully fit for work: you are not sick or incapacitated at the time your benefits start.
Are you curious whether your settlement agreement meets the UWV's requirements? Request a free VSO check and get clear advice from our lawyer.
You only receive WW after the notice period
The UWV always looks at the statutory notice period when assessing your WW entitlement. This term depends on the number of years you have been employed by your employer:
- 1 month for employment of less than 5 years
- 2 months for employment between 5 and 10 years
- 3 months for employment between 10 and 15 years
- 4 months for employment of 15 years or more
During the notice period, your employment contract will formally continue and you will receive salary. Only once the notice period is over, your employment ends and, provided you meet the conditions, your unemployment benefit starts. It is therefore important to include the correct notice period in your settlement agreement.
How long will you receive unemployment benefit in a settlement agreement?
The duration of WW benefit after signing a settlement agreement is calculated on the basis of your employment history. The UWV uses a rather complicated calculation method for this, but in practice, the older you are, the longer you are usually entitled to WW. For example, someone aged 46 or older receives the maximum duration of 24 months. If you are 45, it is around 23.5 months, and at age 40 it is around 18.5 months. These examples give an idea of the accrual, but the exact duration depends on your personal situation and the number of years you have worked.
How high is your unemployment benefit after a settlement agreement?
The amount of your WW benefit after signing a settlement agreement is calculated on the basis of your last-earned wage. In the first three months, you will receive 75% of your daily wage, as determined by the UWV. After that, this percentage drops to 70% for the remaining duration of your benefit. The daily wage is not simply your gross monthly salary divided by 30, but is determined according to a specific calculation by the UWV and has a statutory maximum.
Sample calculation of unemployment benefit
Note
If you earn above the maximum daily wage set by UWV, your WW benefit will always be calculated over that maximum.
Common mistakes that could cause your WW to be denied at a VSO
There are a number of pitfalls when signing a settlement agreement that could result in the UWV rejecting your WW claim after employment termination via a VSO:
- Resigning yourself: if the VSO shows that you took the initiative to resign yourself, the UWV sees this as culpable unemployment.
- Incorrect or incomplete wording: missing or incorrectly worded passages could jeopardise your WW entitlement.
- Record urgent reason: if the agreement states misconduct or work refusal, the UWV often refuses benefits.
- Failure to comply with notice period: too short a notice period can lead to a waiting period or reduction in your unemployment benefit.
- Going off sick: if you are sick at the time of dismissal, you usually cannot get unemployment benefits.
Avoid problems with your unemployment rights: request a free VSO check
Avoid losing your unemployment benefit entitlement due to mistakes in the settlement agreement. With a free VSO check you will immediately see whether everything has been done correctly.
The face behind Transitievergoedingberekenen.nl
My name is Robin Sieverdink, employment lawyer and founder of Transition fee calculator.co.uk. During my law studies, I saw how employees in dismissal situations were often put under pressure and therefore unjustly settled for less than they were entitled to. From that experience, I decided to make a full commitment to fair dismissal arrangements.
I take the time to really listen to you, understand your situation and search together for the best possible solution. In doing so, I combine personal involvement with legal expertise. In most cases, my support is free of charge for you, as employers usually set aside a budget for legal assistance.
With over 15 years of experience, I know how to achieve a better settlement than the employer's initial proposal in 95% of cases. This is exactly what drives me: ensuring that you say goodbye with a fair and careful settlement.
My strength
- I take the time to really understand your situation and stand up for your interests.
- In the vast majority of cases (95%), I achieve a better settlement than the employer's initial proposal.
- A free consultation will give you an honest and concrete picture of your options.
- You always stay informed: I inform you step by step about the progress.
- I make sure your rights, such as WW, are secured.
- You will receive expert legal guidance, with no surprises in costs.
Free VSO check
Not sure whether your settlement agreement has been drawn up completely and correctly? Send your settlement agreement to us and receive free and honest advice within 30 minutes. This way, you will know immediately whether everything has been arranged properly and whether there is room to obtain a better settlement.
Frequently asked questions about VSO and WW benefits
Yes, you may be entitled to unemployment benefit after signing a settlement agreement (VSO), but only if you meet the conditions of the UWV meets. The main requirement is that the initiative for the dismissal lies with your employer and that the VSO clearly states that you are not to blame for the dismissal. The notice period must also be correctly recorded and there must be no urgent reasons, such as misconduct. If these points are not properly recorded, the UWV may reject your WW application.
The duration of your WW benefit is determined according to your employment history and whether you meet the weeks requirement and years requirement.
- Weeks requirement: in the last 36 weeks before your unemployment, you must have worked for at least 26 weeks.
- Year requirement: in the last 5 years before your dismissal, you must have worked in at least 4 calendar years and have received wages over those years on which unemployment insurance contributions were paid.
Do you meet these conditions? Then the following calculation applies for the duration:
- For the first 10 working years: 1 month WW per year worked.
- For subsequent years: 0.5 month WW per year worked.
- The maximum duration is 24 months.
Example:
Have you worked for 12 years and meet the years requirement? Then you will receive 10 months WW for the first 10 years, plus 1 month (2 × 0.5 months) for the additional years. So a total of 11 months WW. This applies provided you have thus worked for 4 years in the last 5 years.
In that case, the UWV may impose a waiting period before your WW benefit starts. You will then miss out on temporary income. Therefore, it is important that the correct notice period is stated in the agreement.
Yes, provided your settlement agreement is drafted correctly. It must be clear that the initiative for the dismissal lay with your employer, that there was no urgent reason and that you did not become culpably unemployed.
Yes, in most cases it does. The UWV often sees this as culpably unemployed, because you may not consent to dismissal during illness. As a result, you may lose your right to unemployment benefit and sometimes also to sickness benefit.
The end date must match your employer's statutory notice period. If it is too short, the UWV may impose a waiting period during which you will not receive WW.