Dismissal via UWV versus settlement agreement: Explaining the differences

14 September 2025
Picture of Arslan Advocaten

Arslan Advocaten

Need help urgently?

Choose a location

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.

Share this message

Facebook
Twitter
LinkedIn

Categories

Employment law

Recent Posts

Popular Tags

Advocatenkantoor

Need help urgently?

Choose a location