You have received a settlement agreement and expect your unemployment benefit (WW) to follow on directly from your last working day. However, the UWV may delay your benefit if the end date in the settlement agreement does not properly align with the applicable notice period. That is precisely where the notional notice period comes in: a technical concept with significant financial consequences for you as an employee in Eindhoven.
What the notional notice period actually means
When employment is terminated by mutual consent, your employment contract is not formally terminated by notice, but instead brought to an end via a Settlement Agreement. Nevertheless, when assessing your WW claim, the UWV treats the situation as though a regular notice of termination had been given. The UWV bases this on the notice period that your employer would have been required to observe under a standard termination, pursuant to Article 7:672 of the Dutch Civil Code. This is the notional notice period.
In practice: the UWV treats the moment the settlement agreement is signed as the notional date of notice. It then adds the statutory notice period applicable to your employer. The resulting date is the earliest date on which your WW benefit can commence. If the agreed end date in the settlement agreement falls before that calculated date, the UWV will impose a waiting period on you. During that waiting period you have no salary and no benefit yet, resulting in an unexpected gap in income.
How the employer’s notice period is calculated
The statutory notice period for the employer (Article 7:672, paragraph 2 of the Dutch Civil Code) depends on the length of service and increases the longer you have been employed. For service of up to five years, one month’s notice generally applies; for five to ten years, two months; for ten to fifteen years, three months; and for fifteen years or more, four months. The notice period begins to run from the end of the calendar month.
Please note: your employment contract or applicable collective labour agreement (CAO) may stipulate a different notice period. The UWV always applies the period that is actually applicable, not automatically the shortest statutory version. Therefore, always check your own contract and any applicable CAO before agreeing to the end date in the settlement agreement.
A practical worked example
Suppose you sign a settlement agreement on 1 April, you have worked for the same employer for eight years, and the agreed end date is 1 May. The statutory notice period for your employer is two months. The UWV calculates as though notice was given on 1 April (end of the month: the notional date of notice) and adds two months to that. Your WW benefit would therefore only commence on 1 July. Between 1 May (end of employment) and 1 July (start of WW benefit) you receive nothing: no wages and no benefit. That is two months without income, even though the end date in the settlement agreement appeared perfectly reasonable at first glance.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekThe solution is as simple as it is crucial: ensure that the end date in the settlement agreement is at least equal to the date that would also apply under a regular notice of termination. In the example above, an end date of 1 July would entirely prevent the WW gap.
Release from work does not affect the end date
Many settlement agreements include a provision releasing you from work during the notice period whilst retaining your salary. That sounds favourable, and indeed it is. However, being released from work does not change the end date of the employment contract. As long as the end date is too early, the risk of a notional notice period and a WW gap remains. The start date of your WW benefit depends on the end date stated in the agreement, not on the date on which you actually stopped working.
Common mistakes regarding the end date in a settlement agreement
These are the pitfalls that occur most frequently in practice:
- End date too early – the most common mistake; the employer proposes a swift date and the employee agrees without checking.
- CAO not taken into account – some collective agreements provide for longer notice periods than the law requires; the UWV always applies the period that is actually applicable.
- Notice calculated from the wrong date – the period runs from the end of the calendar month; a single day’s difference can amount to a full month.
- Contractual notice period overlooked – a longer notice period for the employer agreed in the employment contract also counts.
- Incorrect wording regarding who initiated the dismissal – if the settlement agreement suggests that you yourself terminated the employment, the UWV may refuse your WW benefit entirely on the grounds of culpable unemployment.
Practical tips to avoid a WW gap
- Calculate your employer’s notice period based on the length of your service before agreeing to an end date.
- Check whether your employment contract or CAO contains a different, longer period and always use that as the basis when determining the end date.
- Ensure that the end date in the settlement agreement is at least equal to the date that would also apply under a standard notice of termination; a later end date is also permissible.
- Ensure that the wording regarding who initiated the dismissal is recorded neutrally: the reason must clearly lie with the employer.
- Have the settlement agreement reviewed before you sign it; once signed, making amendments is virtually impossible.
Why Arbeidsjurist Eindhoven
At Arbeidsjurist Eindhoven, we understand that a settlement agreement may appear straightforward at first glance, whilst the details concerning the end date and the notional notice period can have significant financial consequences. We help employees in Eindhoven and the Brabant region to have their settlement agreement reviewed before signing, so that your WW benefit follows on without an unexpected gap. Please feel free to contact us without obligation, and we will look at your situation together.
Frequently asked questions
What is the notional notice period in a settlement agreement?
The notional notice period is the period that the UWV takes into account when assessing your WW claim following a settlement agreement. The UWV calculates when the employment would have ended had your employer terminated it in the normal way, and only allows your WW benefit to commence after that notional period has expired. If the agreed end date in the settlement agreement falls earlier, a waiting period arises during which you have neither wages nor benefit.
How do I determine the correct end date in my settlement agreement to avoid a WW gap?
Calculate the notice period applicable to your employer based on the length of service (Article 7:672, paragraph 2 of the Dutch Civil Code) and check whether your contract or CAO contains a different, longer period. Add that period to the end of the calendar month in which the agreement is signed. The result is the earliest possible end date on which your WW benefit can commence without a gap. Ensure that the end date in the settlement agreement does not fall before that date.
Does being released from work make any difference to the notional notice period?
No. Whether or not you are required to work during the notice period makes no difference to the UWV. The notional notice period is calculated on the basis of the end date in the settlement agreement, not on the basis of the date on which you actually stopped working. Even with a full release from work, an end date that is too early will still give rise to a risk of a WW gap.
Does the statutory notice period also apply under a collective labour agreement (CAO)?
The UWV always applies the period that is actually applicable to your situation. Some collective agreements contain longer notice periods than those prescribed by law. If your CAO provides for a longer period and the settlement agreement does not take this into account, the UWV may nonetheless apply that longer notional notice period. Always check your CAO alongside your employment contract.
Can a WW gap caused by an end date that is too early be rectified after the fact?
Once you have signed the settlement agreement, making changes is virtually impossible without the employer's cooperation. It is therefore crucial to check the end date before signing. Always have your settlement agreement assessed by an employment law specialist before you agree to it, so that a gap in income is avoided.
We are happy to think along with you. For advice tailored to your situation we would gladly sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.
