Yes, a settlement agreement at the employee’s initiative is certainly possible: you may propose to your employer that you end the employment by mutual consent. But it carries one important risk. If you request the termination, the UWV may treat your unemployment as culpable and refuse your unemployment benefit (WW). This article explains when a settlement agreement on your own initiative is sensible, how to protect your right to WW, and what to watch out for.
Can an employee propose a settlement agreement themselves?
A settlement agreement at the employee’s initiative is legally straightforward. A settlement agreement (vaststellingsovereenkomst) is a document in which employer and employee agree together that the employment ends. The law does not say who has to open the conversation, so you as the employee may raise the subject too.
In practice this happens more often than you might think. Perhaps you want to leave because the working relationship has soured, because you are ready for something new, or because you suspect your employer would also like to part ways but is not taking the first step. By making a proposal yourself, you keep control over the timing and the terms.
The key difference is with simply resigning through a settlement agreement. Handing in your own notice is almost always bad for your benefit. A settlement agreement leaves room to make arrangements, but the wording is critical. That is exactly where the biggest attention point lies for anyone taking the initiative.
Consequences for your WW entitlement in a settlement agreement
The biggest pitfall of a settlement agreement at the employee’s initiative concerns your WW entitlement. The UWV only pays WW if you become unemployed involuntarily. That means the dismissal must not be your fault and you must not have asked for it yourself.
If the agreement states that you requested the termination, the UWV treats this as culpable unemployment. The result can be that you receive no WW and end up without income. That is a real risk, because it is precisely when the employee makes the proposal that this culpability comes into play.
There is a solution that often works. Even if you start the conversation, you can agree with your employer that the document is drafted as if the dismissal takes place at the employer’s initiative, without culpable conduct on your part, and observing the notional notice period. Only then does your right to WW stay as protected as possible. Without that neutral, correct wording you run a high risk of rejection, just as when you have no right to WW through your own doing.
When is a settlement agreement at the employee’s initiative sensible?
A settlement agreement at the employee’s initiative is not smart in every situation, but it can genuinely be the best route. It can be wise when you are certain you want to leave and your employer is likely to go along with it. You then negotiate over terms instead of resigning empty-handed.
Think of situations where you already have a new job lined up but still want to take part of your transition payment or a support budget with you. Or a disturbed working relationship where both parties would rather separate, but neither dares to take the first step. By making a decent proposal yourself, you get things moving.
It is less sensible when you still depend entirely on a WW benefit and your employer has no reason to cooperate. In that case you give away a strong position. So always weigh what you stand to gain and lose before you take the initiative. An outplacement programme can help you make that assessment clearly while preparing your next step.
The role of the company doctor in cases of illness
If you are ill, great caution is needed with a settlement agreement on your own initiative. During illness a prohibition on termination applies and you often have a right to continued pay (usually at least 70 percent) and reintegration. If you sign an agreement in that period, you lose that protection and the UWV may also refuse your sickness or unemployment benefit.
The company doctor (bedrijfsarts) plays a central role here. They assess whether you are incapacitated for work and which reintegration obligations apply. As long as you are ill, ending employment by mutual consent is almost always unfavourable. Read more at resigning during illness and at a settlement agreement during illness. In this situation, always seek advice before you sign anything.
What to watch for in a settlement agreement on your own initiative
If you take the initiative, watch the terms closely. These points determine whether you reach a good arrangement and secure your WW:
- Neutral wording: have it stated that there is no culpable conduct and that the termination takes place at the employer’s initiative.
- Notice period: account for the notional notice period, otherwise your WW starts later.
- Compensation: negotiate a transition payment or an additional termination payment.
- Reflection period: you have a statutory 14-day reflection period to withdraw your signature without giving a reason.
- Support: ask for outplacement or a budget to move quickly into new work.
You do not have to negotiate alone. When negotiating a settlement agreement, it helps to know what is customary and achievable, especially when you are the one opening the conversation.
Have your settlement agreement checked
A settlement agreement at the employee’s initiative can be an excellent choice, but a single wrong sentence about culpability could cost you your WW benefit. Unsure whether your arrangement is correct? Have your settlement agreement checked by an expert at Care4Careers. That way you know for sure your initiative costs you nothing and that you move on with a solid arrangement and a real prospect of new work.