Fictitious notice period in a Dutch settlement agreement and outplacement

The Dutch term fictieve opzegtermijn vaststellingsovereenkomst refers to the fictitious notice period that UWV applies when an employment contract ends by mutual consent through a settlement agreement. UWV assumes that the employer should have respected the full statutory or contractual notice period, even if the agreement ends earlier. This fictitious period determines when unemployment benefits can start. Combined with outplacement support, it strongly influences your financial room to search for a new job.

What is the fictitious notice period?

The fictitious notice period is a concept from Dutch unemployment law (WW). The public employment service UWV calculates the notice period that the employer would have had to observe if they had terminated the contract unilaterally. That period is treated as if the employee were still employed, even when the contract has already ended by mutual consent.

In a settlement agreement (vaststellingsovereenkomst, often called VSO) the parties agree on the termination date and other conditions without involving a court or UWV. Under Dutch labour law, employers must respect a notice period when terminating. UWV mirrors this obligation by applying a fictitious notice period in case of mutual termination, and only after this period the unemployment benefit can start.

For employees entering an outplacement programme, the fictitious notice period therefore helps define the financial bridge between jobs. If this period is not properly taken into account in the agreement, a gap can arise with no salary and no WW benefits. That is why it is essential to consider the notice period and termination date when negotiating a settlement agreement that also contains outplacement arrangements.

How does UWV determine the fictitious notice period?

UWV uses the rules from the Dutch Civil Code and any applicable collective labour agreement (cao). The starting point is the employer’s notice period, not the employee’s. This period depends on the length of service and possible contractual arrangements, within the statutory limits.

UWV then looks at the agreed termination date in the settlement agreement and calculates back. The period in which the employer would still have been obliged to continue the employment relationship forms the fictitious notice period. For that period UWV expects salary or an equivalent compensation. If there is no payment for that time, unemployment benefits will still only start after the fictitious period has ended.

Link between fictitious notice period and settlement agreement

A settlement agreement records all arrangements about the end of employment: termination date, transition payment, possible extra severance, waiver of work and often an outplacement budget. The fictitious notice period silently runs through these negotiations, because it has a direct impact on WW rights.

To safeguard unemployment benefits, Dutch practice requires that a settlement agreement respects the reasonable employer’s notice period, or compensates for it financially. If the contract ends earlier than this fictitious period and there is no sufficient payment covering it, UWV may delay the start of WW or even (partly) deny benefits because of self-inflicted unemployment.

Why outplacement matters in this context

Outplacement is professional guidance towards a new job after dismissal. A specialised provider such as Care4Careers supports employees with reflection, labour market orientation, CV and LinkedIn optimisation, networking and targeted job search. Many Dutch employers offer an outplacement programme as part of the settlement agreement, in addition to the statutory transition payment.

When the fictitious notice period is aligned with the duration of the outplacement programme, the employee can already work on their next step while income is still secured. If the contract ends earlier and outplacement only starts afterwards, it becomes even more important that WW benefits start without delay. In both scenarios, correct handling of the fictitious notice period in the settlement agreement is crucial.

Key risks and how to avoid them

A common risk is to focus only on the gross severance amount and the termination date, ignoring UWV’s rules on the fictitious notice period. A seemingly attractive quick termination with a higher payment can turn out to be less favourable if WW benefits start later than expected. A second risk is to arrange outplacement too late, for example only after the contract has formally ended, while guidance during the notice period could have increased the chances of a direct move to a new job.

By combining legal advice on the settlement agreement with career support through outplacement, employees can make more balanced choices. The fictitious notice period then becomes a planning tool: it indicates how much time there is to prepare for the next step with income still secured, and how the financial package and outplacement trajectory can best be aligned.

Summary

The fictitious notice period in a Dutch settlement agreement is a technical concept with very concrete consequences. UWV assumes the employer’s full notice period, and only after that fictitious period has ended can unemployment benefits start. In agreements that also include outplacement, it is important that termination date, financial compensation and career support are coordinated.

When the fictitious notice period is correctly reflected in the settlement agreement, employees retain access to WW and have more financial and mental space to use outplacement effectively. This combination of legal certainty and professional guidance significantly increases the chances of a smooth and sustainable transition to new work.