If your employer wants to fire you, you can agree without losing your right to unemployment benefits. You then terminate the contract by mutual consent via a settlement agreement (VSO). A settlement agreement is also sometimes called a termination agreement.
Often beneficial, but certainly not always
The advantage for the employer is that you prevent a procedure or lawsuit. The advantage for the employee is that you can negotiate a severance pay. It's often a good, quick way to break up. But there are a few things you should pay close attention to.
It is important that the settlement agreement is legally correct. Therefore, always have the VSO checked. Never sign immediately. First understand the consequences.
What should you pay attention to in a settlement agreement?
Your employer must take the initiative for the dismissal (you cannot propose it yourself)
There may be no culpable dismissal due to, for example, negligence, structural lateness or theft
Your employer must adhere to the notice period. If this does not happen, you will only be entitled to unemployment benefit after the notice period has expired
If you are ill for a long period of time, a settlement agreement is usually unfavorable
Be careful in case of long-term illness
If you have been ill for less than two years, a settlement agreement is usually unfavorable. There is a good chance that you will no longer be eligible for unemployment benefits or sickness benefits as a result. In the event of illness, you are entitled to 104 weeks (two years) of wages. If you waive this right by signing a settlement agreement, the benefits agency will not compensate for this given right.
If you are ill for more than two years, the employer can dismiss you. The employer can apply for a dismissal permit from the UWV, but a settlement agreement is often also offered.
If you are temporarily ill
If you are temporarily ill, it is possible to terminate the employment contract while retaining your unemployment benefits. For example, if your illness is due to the high workload at your employer. The expectation is that you will quickly get better after leaving and can look for a new job.
A settlement agreement is also used for temporary contracts. But this is only possible if an interim termination option is included in your contract. If you already have a new job in mind, a settlement agreement can of course always be attractive.
How much is a severance payment?
You usually agree on a severance payment with your employer. How high it will be is a matter of negotiation. But usually this is one third of your gross monthly salary per year worked.
You can change your mind
The settlement agreement must state that you have a 2-week reflection period. If nothing is stated in the agreement, the cooling-off period is 3 weeks. Have you changed your mind? Then indicate by letter that you want to terminate the settlement agreement. You don't have to give a reason.
If you are ill for a long period of time, a settlement agreement is usually unfavorable
What should be included in the settlement agreement?
that the employer has proposed to terminate the employment relationship and the reason for this
that there is no urgent reason for dismissal and you cannot blame the employee
that there is mutual consent
whether your vacation days (and other accrued leave) and a (transition) allowance are paid out
on what date the employment contract ends (note the notice period!)
