Dismissal via UWV versus settlement agreement: Explaining the differences

26 December 2025
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Dismissal via UWV versus settlement agreement: Explaining the differences

When your employer wants to part with you, it can be done in different ways. Often you are offered a settlement agreement (VSO), but sometimes the employer opts for a dismissal procedure via the UWV. Both routes have important consequences for you as an employee.

In this article we explain the differences between dismissal via the UWV and dismissal with a VSO, discuss the advantages and disadvantages, and give practical tips.


Dismissal via the UWV

The UWV is authorized to test dismissal at:

  • Business economic reasons (reorganization, cost saving).

  • Long-term occupational disability (sick for more than 2 years).

How does it work?

  • The employer submits a request to the UWV.

  • The UWV assesses whether the reason is valid.

  • If the request is granted, the contract is terminated.

Consequences for the employee

  • You are entitled to the statutory transition payment.

  • You retain your right to WW (provided you meet the conditions).

  • There is no room to negotiate extras, except via a separate settlement.


Dismissal via a settlement agreement

A settlement agreement is a termination agreement in which employer and employee make mutual agreements.

How does it work?

  • The employer proposes termination with a VSO.

  • You can negotiate the terms.

  • After agreement, both parties sign the agreement.

Consequences for the employee

  • You retain your right to WW (provided the VSO is correctly drafted).

  • You often have the right to the transition allowance.

  • You can negotiate for more: extra compensation, exemption from work, training budget or scrapping of clauses.


Examples from practice

  • Example 1: An employee received a VSO during a reorganization. By negotiating he got 3 extra monthly salaries on top of the transition payment. He would not have had this in a UWV procedure.

  • Example 2: An employee who had been sick for more than 2 years was dismissed via the UWV. He only received the transition payment.

  • Example 3: An employee in cost savings initially received a UWV dismissal. Through consultation, the employer switched to a VSO, giving the employee a better package.


Checklist: UWV or VSO?

  • 📄 Reason for dismissal: business-economic or long-term illness → UWV.

  • 💶 Do you want extra compensation or agreements? → VSO offers space.

  • ⚖️ Do you want certainty and objective testing? → UWV.

  • 📊 Do you want tailor-made solutions and better conditions? → VSO.

  • 📝 Always get legal advice, both routes have risks.


Frequently Asked Questions (FAQ)

1. Do I get WW in case of dismissal via the UWV?
Yes, provided you are not dismissable.

2. Is a VSO always better than a UWV procedure?
Not always, but a VSO offers more room for negotiation and extras.

3. Do I have to sign if my employer offers a VSO?
No, it is voluntary. Refusal means that your employer may go to the UWV.

4. Do I also get a compensation at UWV?
Yes, you get the transition payment. Extras such as training budget or outplacement are rarely awarded.

5. Can I prevent a UWV procedure?
Yes, often by concluding a VSO with your employer.


Why Arslan Lawyers?

  • Guide employees in both UWV procedures and VSOs

  • Negotiate for higher compensations and better terms

  • Check that your WW rights are secure

  • Assist in making the right choice between UWV or VSO


Conclusion

A UWV-dismissal provides certainty and is suitable for business economic reasons or long-term illness, but offers little room for negotiation. On the other hand, a VSO gives flexibility and a chance for better conditions. Always get legal advice to make the best choice.

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