When your job ends in the Netherlands, you usually face two routes: dismissal via UWV or a settlement agreement (vaststellingsovereenkomst). Both end your employment, but they work very differently and have different consequences for your WW unemployment benefit, your transition payment and how fast everything is settled. This article compares dismissal via UWV or a settlement agreement, so you can make a well-informed choice.
The route your employer proposes determines how much influence you have on the terms. With a settlement agreement you negotiate the terms together. With the UWV procedure an independent body assesses whether the dismissal is justified. Understanding how both routes work helps you protect your rights and avoid signing too quickly.
Dismissal via UWV
Dismissal via UWV is the statutory route for business-economic reasons (such as a reorganisation or a redundant role) and for long-term incapacity for work. With a permanent contract, your employer cannot simply dismiss you: they must first request permission. UWV assesses the request and checks the reflection principle (afspiegelingsbeginsel) and whether you really cannot be redeployed.
If UWV grants permission, your employer may terminate the contract while observing the applicable notice period. If you disagree with the decision, you can go to the subdistrict court. You can read more about this route in our overview of ontslag via het UWV (dismissal via UWV). The main advantage is that your WW entitlement is usually beyond doubt: you became unemployed through no fault of your own and sign nothing that suggests culpability.
The drawback is that you have little say over the terms. The transition payment follows the statutory formula, there is usually no room for extra compensation, and the procedure can take several weeks to months. This route also gives you no negotiation moment to agree, for example, an outplacement budget or garden leave.
Dismissal with a settlement agreement
Dismissal with a settlement agreement means that you and your employer jointly agree that the employment ends. This is also called termination by mutual consent. Your employer then does not need permission from UWV, because you arrange everything yourselves in a written agreement. You can read how ontslag met wederzijds goedvinden (termination by mutual consent) works in our separate article.
The big advantage is room to negotiate. You can agree on the amount of the payment, the end date, garden leave, a positive reference, and a budget for guidance toward new work. What such a document should contain is set out in our overview of the vaststellingsovereenkomst (settlement agreement). After signing you also have a statutory reflection period of fourteen days, so you can still withdraw your signature.
There are points to watch. The wording matters a great deal: if it accidentally states that you took the initiative or that there was an urgent cause, your WW benefit can be at risk. The end date must also account for the fictive notice period, otherwise your WW starts later. Always have the text reviewed before you sign.
Dismissal via UWV or a settlement agreement: the differences
The main differences between dismissal via UWV or a settlement agreement come down to three points: your WW benefit, your transition payment and speed.
- WW benefit: with the UWV route your WW entitlement is usually secure. With a settlement agreement WW is also possible, but only if the text is drafted correctly and shows no culpability. Read more in WW-uitkering bij ontslag (unemployment benefit after dismissal).
- Transition payment: via UWV you receive the statutory transition payment. With a settlement agreement that is the starting point, but you can often negotiate more. The maximum transition payment in 2026 is €102,000, or one gross annual salary if that is higher. Calculate your situation with our tool to calculate your transition payment.
- Speed: a settlement agreement is usually settled within a few weeks. The UWV procedure takes longer, because the request is first assessed on its merits.
In short: the UWV route offers certainty but little influence, while a settlement agreement offers influence and speed, provided you arrange the terms well.
Which route is better: UWV or a settlement agreement?
Which route is better depends on your situation. If you want maximum certainty about your WW and see no room to negotiate, the UWV procedure can be suitable. If you want influence over the payment, a quick conclusion, and arrangements for guidance to new work, a settlement agreement offers more options.
In practice, many employers and employees choose a settlement agreement, precisely because you reach an outcome together without a long procedure. But that room is only valuable if you use it. Negotiate a realistic payment and an outplacement programme, so you receive guidance in finding a new job. This reduces the time you depend on a benefit.
Do not let anyone pressure you into signing quickly. You almost always have a reflection period, and it pays to first review calmly what is on the table.
Have your settlement agreement reviewed
If you choose a settlement agreement, the text determines your WW and your payment. One unfortunate sentence can cost you thousands of euros or months of benefit. That is why it is wise to have your settlement agreement reviewed before you sign.
Care4Careers combines a legal check with guidance toward new work. We look not only at whether your terms are correct, but also at how you can take a suitable next step as quickly as possible. Unsure about dismissal via UWV or a settlement agreement? Get in touch and we will look together at which route fits your situation.