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:
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Business economic reasons (reorganization, cost saving).
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Long-term occupational disability (sick for more than 2 years).
How does it work?
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The employer submits a request to the UWV.
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The UWV assesses whether the reason is valid.
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If the request is granted, the contract is terminated.
Consequences for the employee
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You are entitled to the statutory transition payment.
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You retain your right to WW (provided you meet the conditions).
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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?
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The employer proposes termination with a VSO.
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You can negotiate the terms.
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After agreement, both parties sign the agreement.
Consequences for the employee
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You retain your right to WW (provided the VSO is correctly drafted).
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You often have the right to the transition allowance.
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You can negotiate for more: extra compensation, exemption from work, training budget or scrapping of clauses.
Examples from practice
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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.
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Example 2: An employee who had been sick for more than 2 years was dismissed via the UWV. He only received the transition payment.
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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?
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📄 Reason for dismissal: business-economic or long-term illness → UWV.
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💶 Do you want extra compensation or agreements? → VSO offers space.
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⚖️ Do you want certainty and objective testing? → UWV.
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📊 Do you want tailor-made solutions and better conditions? → VSO.
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📝 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?
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Guide employees in both UWV procedures and VSOs
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Negotiate for higher compensations and better terms
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Check that your WW rights are secure
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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.
Key Differences and Considerations Between UWV Dismissal and Settlement Agreements
Understanding the nuances between dismissal via the UWV and a settlement agreement is crucial for employees facing termination in the Netherlands. Each route offers distinct legal protections and practical implications that can significantly affect your rights and future prospects.
Flexibility and Negotiation
One of the most important differences is the degree of flexibility. With a settlement agreement (VSO), you have the opportunity to negotiate not only the financial compensation but also other terms such as a reference letter, extended notice period, or outplacement support. This can be especially valuable if you want to ensure a smoother transition to new employment.
In contrast, dismissal via the UWV process is more rigid. The UWV only assesses whether the employer’s reasons for dismissal are valid under Dutch law. It does not allow for negotiations on additional benefits or tailored arrangements. This means employees might receive only the statutory transition payment without any added perks.
Legal Protections and Appeal Options
The UWV dismissal procedure offers a formal legal framework where the dismissal reasons are objectively assessed, providing employees with a clear channel to contest wrongful dismissal. If you believe the dismissal is unjustified, you can appeal the UWV’s decision to the subdistrict court (kantonrechter), which provides an extra layer of protection.
On the other hand, a settlement agreement is based on mutual consent. Once you sign the agreement, it typically includes a waiver of further claims against the employer. Therefore, it is vital to carefully review the terms and possibly seek legal advice before signing to ensure your rights are fully protected.
Practical Tips for Employees
- Seek legal advice early: Before agreeing to a settlement or responding to a UWV dismissal, consult with a lawyer experienced in Dutch employment law to understand your rights and options.
- Evaluate long-term impacts: Consider how the dismissal route affects your unemployment benefits, pension rights, and future employment opportunities.
- Negotiate the best possible terms: If offered a settlement agreement, do not hesitate to negotiate for better financial compensation or additional support services.
- Understand your notice period: Whether dismissed via UWV or VSO, ensure you know the applicable notice periods and whether you are entitled to continued salary during this time.
Legal Framework in the Netherlands
Dismissal laws in the Netherlands are designed to protect employees and ensure fair treatment. The WWZ (Work and Security Act) governs dismissal procedures, including the role of the UWV and the use of settlement agreements. Employers must have a valid reason for dismissal, such as economic necessity or long-term illness, and follow the statutory procedures to avoid unlawful dismissal claims.
In cases of dismissal via the UWV, the employee is entitled to the statutory transition payment based on the length of service, as stipulated in Dutch law. Settlement agreements can offer more generous terms but require careful drafting to comply with legal standards and avoid future disputes.
Contact Arslan & Arslan Advocaten for Expert Advice
If you are facing dismissal or have been offered a settlement agreement, it is essential to understand your rights and options thoroughly. The legal landscape can be complex, and the consequences of your choices may affect your financial security and career.
At Arslan & Arslan Advocaten, we specialize in employment law and provide tailored advice to help you navigate dismissal procedures effectively. Contact us today for a consultation to protect your interests and secure the best possible outcome.
Frequently Asked Questions
Do I get unemployment benefits (WW) if I am dismissed through the UWV?
Yes, you are generally entitled to WW benefits if you are dismissed via the UWV, provided you meet the eligibility criteria and are not considered dismissable. It’s important to check your specific situation with a legal expert.
Is a settlement agreement (VSO) always better than dismissal via the UWV?
Not necessarily; a VSO often provides more room for negotiation and additional benefits, but it depends on your specific circumstances and preferences. Consulting a lawyer can help determine the best option for you.
Do I have to sign a settlement agreement if my employer offers it?
No, signing a settlement agreement is voluntary. If you refuse, your employer may proceed with dismissal via the UWV, but seeking legal advice is recommended before making a decision.
Can I negotiate for extra compensation or benefits in a dismissal settlement?
Yes, a settlement agreement allows you to negotiate for additional benefits such as extra severance, training budgets, or exemption from certain clauses, giving you potential advantages over a standard UWV dismissal.