A settlement agreement (SA) regulates the termination of your employment by mutual agreement. One of the most important components in this is the notice period. Yet this is often overlooked, while errors in this can have major consequences for your unemployment benefits and your income.

In this article we explain what the notice period is, why it is so important in an SA and what you should pay attention to before signing.

What is the notice period?

The notice period is the period legally stipulated between the date of dismissal and the official end date of your employment contract.

• For the employer, the notice period depends on the length of your employment.

• For the employee, a notice period of one month usually applies, unless otherwise agreed.

Statutory notice period for employers:

• 0 – 5 years of employment: 1 month

• 5 – 10 years of employment: 2 months

• 10 – 15 years of employment: 3 months

• 15+ years of employment: 4 months

Why is the notice period important in a SA?

The UWV uses the statutory notice period to determine when you are entitled to unemployment benefits. If your SA contains a notice period that is too short, this may mean that you will not receive any unemployment benefits for one or more months.

👉 Example: You have 8 years of employment. The notice period is 2 months. If your SA mentions an end date that is already a month away, you will only receive unemployment benefits after the correct notice period. So you miss a month of benefits.

Common mistakes

1. Too short notice period
   As a result, you have a period without salary and without benefits.

2. Ignoring collective agreement provisions
   In some collective agreements different notice periods apply.

3. Not checking the start date of unemployment benefits
   The UWV always looks at the legal period, not what is in the SA.

Examples from practice

• Example 1: An employee signed a SA with an end date that was 1 month too early. The UWV refused unemployment benefits for that month. This was resolved with an adjusted SA.

• Example 2: An employee was confronted with a collective agreement prescribing a longer notice period. Without correction, he would have missed 2 months of unemployment benefits.

• Example 3: An employee received, through negotiations, in addition to the transition payment, an extra month’s salary to compensate for the gap due to the notice period.

Checklist: Notice period in SA

• 📄 Check the length of your employment and the associated notice period.

• 📅 Check if the end date in the SA has been calculated correctly.

• 📝 Check if there are collective agreement provisions.

• 💶 Negotiate compensation if the end date is not correct.

• ⚖️ Always have your SA checked legally.

Frequently Asked Questions (FAQ)

1. What happens if my notice period is wrong in the SA?
Then the UWV can temporarily deny you unemployment benefits.

2. Can I get compensation for a mistake in the notice period?
Yes, often an additional compensation or salary can be agreed.

3. Does my collective agreement notice period also apply to a SA?
Yes, collective agreement provisions take precedence over the law.

4. Can I lose unemployment benefits due to a wrong end date?
Yes, this happens often. Always have your SA checked.

5. Does a lawyer help in this?
Yes, a lawyer can calculate which date is correct and negotiate compensation.

Why Arslan Lawyers?

• Ensuring that your SA is legally drawn up correctly

• Making sure you do not miss out on unemployment benefits due to the wrong notice period

• Negotiating for compensation if your employer wants to hurry

• Experienced in collective agreement and contractual notice period issues

Conclusion

The notice period is a critical part of a settlement agreement. A wrong calculation can cost you months of unemployment benefits. Therefore, always have your SA checked and negotiate as needed for a correct end date or compensation.