VSO Notice Period in the Netherlands Explained

In a Dutch settlement agreement (vaststellingsovereenkomst, VSO) you agree an end date, and that date determines how the statutory or contractual notice period is applied. That end date is crucial for your entitlement to unemployment benefits (WW) from the Dutch Employee Insurance Agency (UWV) and for the duration of continued salary payment. This article explains how the notice period works in a VSO, how the fictitious notice period is assessed and how this links to outplacement support and your next career step.

What is a VSO and what is meant by the notice period?

A settlement agreement (vaststellingsovereenkomst, usually abbreviated as VSO) is an agreement between employer and employee that sets out how and when the employment contract will end. Instead of dismissal via the UWV or the subdistrict court, both parties mutually agree on the termination date, the severance package, garden leave and possible provisions such as outplacement. The VSO is therefore the legal basis of the departure arrangement.

The notice period is the period between formal notice of termination and the actual end of the employment contract. Dutch labour law (Civil Code, article 7:672), and often the collective labour agreement (cao) or employment contract, contain standard notice periods. With a VSO, there is usually no formal termination, but the UWV still applies a so-called fictitious notice period: the period that should have been observed.

For the UWV to treat the VSO as unemployment-benefit friendly, the agreed end date must at least cover the statutory or contractual notice period that the employer would have had to observe. If the employment ends earlier, the UWV can impose a waiting period during which you will not yet receive WW benefits. This makes the combination of VSO and notice period a key point in any negotiated exit.

• The VSO records that the employment ends by mutual consent.
• The notice period determines the formal end date of your contract.
• The UWV uses the fictitious notice period to assess WW entitlement.
• Cao or contract provisions may extend the statutory notice period.
• Good alignment prevents an income gap between salary and WW benefits.

How does the statutory notice period work in the Netherlands?

The employer’s statutory notice period depends on the length of service. The longer you have been employed, the longer the employer’s notice period can be. For employees the statutory notice period is usually one month, unless your contract or cao states otherwise. In a VSO context, the employer’s notice period is most relevant, because the UWV uses that for the fictitious notice period.

The standard scheme for employers is as follows: up to five years of service the notice period is one month, from five to ten years two months, from ten to fifteen years three months and from fifteen years onwards four months. Some cao agreements deviate from this, for example by stipulating a fixed notice period of two months for all employees. Many individual contracts also explicitly state the applicable notice period.

In a VSO, parties usually agree on an end date that respects this statutory or contractual notice period. This can mean that you are released from work with immediate effect, while formally remaining employed and receiving your salary until the end of the notice period. In practice, that period is often used to start an outplacement programme so you can prepare for a new job.

• The statutory notice period for employees is generally one month.
• The employer’s notice period increases with the length of service.
• Cao provisions can modify or extend the statutory periods.
• The UWV uses the employer’s notice period for the fictitious period.
• With a VSO you can agree on salary continuation during that period.

VSO and fictitious notice period: what does the UWV assess?

The fictitious notice period is the period for which the employer would still have had to pay salary if the contract had been terminated in the regular way. The UWV assumes that you do not need WW benefits during that period, because the employer is in principle responsible for your income. With a VSO there is no formal termination, but the UWV still calculates this fictitious period to determine when your WW benefits can start.

In practice, the fictitious notice period usually starts on the date the VSO is signed, unless a later reference date is chosen in line with WW rules. If the agreed end date is earlier than the end of this fictitious period, the UWV can impose a waiting period. During that waiting period you are no longer employed, but you may not yet receive WW benefits, which can create an income gap.

To avoid this, many VSOs explicitly take the fictitious notice period into account. The end date is then chosen so that it falls after the end of the employer’s notice period. Combined with an appropriate severance payment and a provision such as an outplacement process, this leads to a balanced arrangement that is both legally and financially sound.

• The UWV looks at the employer’s notice period, not the employee’s.
• The fictitious notice period usually starts on the signing date.
• If the contract ends earlier, a WW waiting period may apply.
• A carefully chosen end date prevents an unexpected income gap.
• Legal advice when drafting the VSO is highly recommended.

Practical examples: how does the VSO notice period work out?

An example from a Care4Careers programme makes the mechanism concrete. An employee at a care organisation with around six hundred people, seven years in service, received a draft settlement agreement on 12 February stating that employment would end on 31 March. At seven years of service the employer’s statutory notice period is two months.

Checking the draft before signature showed that this end date did not take sufficient account of the fictitious notice period the UWV applies to a WW claim. With 31 March as the end date, a period could arise in which salary had already stopped while there was not yet any entitlement to benefit.

During the negotiations the end date moved to 30 April, with release from duties and continued salary until then. The agreement was signed on 26 February. After employment ended, the benefit could follow on from the corrected end date, which prevented an income gap of roughly four weeks.

In practice such arrangements are often combined with guidance towards new work. Employers then include a budget in the agreement for the outplacement programme with a settlement agreement, so that the weeks up to the end date are used for orientation and applications.

• A notice period that is too short in the agreement can cause a waiting period for benefit.
• Continued payment with release from duties prevents a gap between salary and benefit.
• Calculate the fictitious notice period before signing, not afterwards.
• Outplacement can run in parallel with the fictitious notice period.
• Record every arrangement as concretely as possible in the agreement.

Common mistakes around VSO notice periods and how to avoid them

A frequent mistake is to focus negotiations mainly on the severance amount while underestimating the importance of the end date and WW consequences. The termination date is then chosen because it feels practical, without checking whether it aligns with the fictitious notice period. Only at the WW application stage does the employee discover that a waiting period applies.

Another pitfall is ignoring cao provisions. In some sectors, the notice period in the cao differs from the statutory scheme. The UWV will then use the cao period. If that period is longer than the statutory one, but the VSO does not reflect this, a gap can still arise. For fixed-term contracts, specific rules apply as well, similar to those described for a notice period when ending a one-year contract.

Finally, the notice period is sometimes not aligned with other elements in the VSO, such as the final settlement of holidays or a bonus arrangement. This can lead to discussions about entitlement to variable pay, pension accrual or a thirteenth month up to the end date. Clear wording and careful internal coordination on the employer side help to prevent such disputes.

• Do not negotiate only on severance; include the end date explicitly.
• Always check the applicable cao for deviating notice periods.
• Align the end date, final settlement and bonus or pension arrangements.
• Have the VSO reviewed by a labour law specialist.
• Calculate the financial impact of different end-date scenarios.

The role of outplacement when a VSO includes a notice period

A VSO with a properly arranged notice period often creates a transition phase in which you are still formally employed, but no longer working in your old role. This phase is ideal for starting an outplacement programme. Outplacement is professional support in finding new, suitable work after or around dismissal, usually funded by the employer.

An outplacement programme can include several components: career orientation, clarifying your profile, CV and LinkedIn optimisation, application coaching, networking strategy and sometimes support in starting as a self-employed professional. Dutch specialist Care4Careers guides employees through such a process step by step, with attention to both the emotional impact of leaving and the practical reality of the labour market. This is especially valuable when you have been declared redundant (boventallig) as a result of a reorganisation or your role is being eliminated.

In practice, outplacement is often explicitly mentioned in the VSO, for example as a benefit in kind alongside or instead of part of the transition payment (transitievergoeding). Employers choose this option in situations of outplacement following dismissal because it offers employees a realistic perspective on their next career move. For employees, this can make a negotiated exit more acceptable and manageable.

• Outplacement can start during the notice period or immediately after.
• The employer usually pays for the programme and records this in the VSO.
• Support focuses on both processing the dismissal and future steps.
• The programme helps shorten the time between two jobs.
• Outplacement can link up with reintegration in the second or third track after long-term illness.

VSO notice period, WW and UWV: key points to consider

For your WW entitlement it is essential that the VSO clearly states that the termination initiative lies with the employer and that the notice period is respected. The UWV assesses whether your unemployment is not your own fault and whether the employment did not end too early. Many VSOs therefore explicitly state that the employer took the initiative and that there is no serious misconduct or urgent cause.

The UWV then examines the agreed end date in relation to the fictitious notice period. If the end date falls after the end of that period, the employment lines up neatly with a potential WW benefit. If the end date is earlier, the UWV can define a period without WW entitlement, which you must bridge yourself.

It is therefore wise to have the VSO checked by a labour law lawyer or legal adviser before signing. They can also review other elements such as the transition payment and arrangements in case of illness or reintegration. Topics such as settlement agreements and safeguarding WW rights are complex and justify professional advice.

• Ensure the VSO states that the employer initiated the termination.
• Check whether the end date matches the fictitious notice period.
• Inform yourself about UWV conditions for WW benefits.
• Have the full VSO legally reviewed before signing.
• Prepare a financial plan for the period after termination.

Combining VSO notice period, severance and final settlement

The notice period is closely linked to the severance payment, the final settlement and any additional arrangements. In the VSO you record whether you will receive a statutory transition payment, an additional severance amount and whether part of that amount will be used for outplacement. You also specify how outstanding holidays, bonuses, a thirteenth month and pension contributions are handled up to the end date.

Sometimes parties opt for a relatively short notice period combined with a higher severance amount. While this may look attractive at first glance, it can be disadvantageous if it creates a WW waiting period. In other cases, the full notice period is observed and supplemented by a transition payment in line with legal rules. The right balance depends on your situation, your bargaining power and the employer’s willingness to invest in a smooth transition.

For employees, it is important not only to look at the total amount but also at the timing of income and the expected time to find new work. Support from a career coach or outplacement agency helps to use the transition period effectively. The time during which you are still on the payroll, or just after, can then be used for a well-structured outplacement programme aimed at sustainable re-employment.

• Align the notice period with severance and final settlement arrangements.
• Be aware of WW consequences of a short notice period.
• Consider investing part of the severance in outplacement support.
• Agree explicitly on holidays, bonuses and pension up to the end date.
• Have the financial elements in the VSO calculated in detail.

Summary: key insights on VSO notice periods and outplacement

The interaction between a VSO and the notice period revolves around three core questions: when does your employment end, how does that connect to your WW entitlement and what support do you receive towards new work. The employer’s fictitious notice period is the benchmark for the UWV. If the VSO end date aligns with that period, you avoid an unnecessary gap between your last salary and potential WW benefits.

A well-balanced settlement respects statutory and cao rules, takes your personal situation into account and looks ahead to your position on the labour market. Outplacement can play a central role here: it offers structure, guidance and realistic perspective in a phase of change. By using the notice period consciously as a transition phase, you increase the likelihood of moving into your next role with confidence and a clear direction.

Unsure about what your VSO says? Have your settlement agreement reviewed by a Care4Careers expert so you can be sure nothing is overlooked.