When you are dismissed, two questions immediately arise: are you entitled to redundancy pay, and can you claim unemployment benefit at the same time? The answer is yes – both schemes can exist alongside each other. However, there are a few crucial conditions to be aware of, because a small error in the dismissal paperwork can prove very costly.
Redundancy pay and unemployment benefit are two separate schemes
A common misconception is that redundancy pay is deducted from your unemployment benefit, or that your entitlement to unemployment benefit lapses once you receive a redundancy payment. That is not correct. The Redundancy Payment is an amount your employer pays you upon termination of the employment contract. Unemployment benefit is subsequently paid out by the UWV (Employee Insurance Agency). The two are entirely independent of each other: the redundancy payment is not offset against your benefit, and you do not need to declare it as income when applying for unemployment benefit.
In short: upon dismissal you are in principle entitled to both, provided you meet the relevant conditions.
When are you entitled to redundancy pay?
The right to redundancy pay arises as soon as the employer takes the initiative to terminate the employment contract or not to renew a fixed-term contract. This applies from the very first working day – there is no longer a minimum length of service requirement. In 2026, the maximum redundancy payment is €102,000 gross, or one gross annual salary if that is higher.
The calculation is always: one third of a monthly salary for each full year of service. The longer you have been employed, the higher the amount – up to the statutory maximum.
There are exceptions where you are not entitled to redundancy pay:
- You resign of your own accord without the employer having given cause to do so.
- You have been summarily dismissed on grounds of a compelling reason that is entirely attributable to you.
- You have reached the state pension age at the time of dismissal.
- You were under 18 years of age and worked fewer than twelve hours per week.
When are you entitled to unemployment benefit?
Unemployment benefit is an employee insurance scheme that provides you with a temporary income if you lose your job through no fault of your own. To be eligible, you must satisfy the so-called weeks requirement: you must have worked for at least 26 weeks out of the 36 weeks preceding your unemployment. In addition, you must not have become unemployed through your own fault.
In the case of a settlement agreement (dismissal by mutual consent), the right to unemployment benefit remains intact in principle, provided the agreement is correctly drafted. The reason for dismissal must be neutral, the initiative must demonstrably lie with the employer, and there must be no compelling reason for dismissal.
The notional notice period – the critical point to watch
One point that is very frequently overlooked in dismissal via a settlement agreement is the notional notice period. The UWV assumes that you received your salary during the statutory notice period that would have applied in the case of ordinary dismissal. If your unemployment benefit starts before that period has elapsed, a gap in income arises: you temporarily receive neither salary nor unemployment benefit.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekThe notional notice period depends on your years of service:
- Fewer than 5 years of service: 1 month’s notice.
- 5 to 10 years of service: 2 months’ notice.
- 10 to 15 years of service: 3 months’ notice.
- 15 years or more of service: 4 months’ notice.
The end date in your settlement agreement must therefore be at least equal to the date on which this notional notice period expires. If the end date is set too early, the UWV will defer your unemployment benefit. You will then miss out on both salary and benefit for that period.
What changes to unemployment benefit are coming in the next few years?
It is worth knowing that unemployment benefit rules may change significantly in the coming years. The coalition agreement for 2026–2030 has stipulated that the maximum duration of unemployment benefit will be reduced to one year with effect from 1 January 2028. Currently, the maximum duration is still 24 months. The government is still in consultation with trade unions and employers about the precise details, so the situation remains subject to change for the time being. Keep a close eye on this if you are currently facing dismissal and anticipate a longer period of unemployment benefit.
Practical tips to safeguard both entitlements
If you want to secure both your redundancy pay and your unemployment benefit upon dismissal, bear the following in mind:
- Always check that the correct notice period is stated in the settlement agreement; an end date that is too early will cost you benefit days.
- Ensure the reason for dismissal is described in neutral terms and that the initiative demonstrably lies with your employer.
- Register as a jobseeker with the UWV no later than one week before your last working day.
- Never sign under time pressure; after signing you have a statutory 14-day cooling-off period (Art. 7:670b(2) of the Dutch Civil Code) in which to revoke the settlement agreement in writing.
- Always have the settlement agreement checked by an employment law specialist before you sign.
- Ask whether your collective labour agreement contains deviating provisions regarding redundancy pay or the notice period.
Why Arbeidsjurist Eindhoven?
At Arbeidsjurist Eindhoven, we know how quickly things can go wrong with what appears to be a straightforward settlement agreement. An incorrect end date, an ill-judged reason for dismissal, or a missing clause – and you could lose hundreds of pounds in benefit. We know the local labour market in Eindhoven and the Brabant region and are on hand to help you quickly and personally. Have you received a dismissal proposal, or would you like to know whether your entitlement to redundancy pay and unemployment benefit is properly protected? Contact us without obligation – we would be happy to look at your situation together.
Frequently asked questions
Is my redundancy pay deducted from my unemployment benefit?
No. Redundancy pay and unemployment benefit are entirely independent of each other. You do not need to declare the redundancy payment as income to the UWV, and the amount is not offset against your benefit. You simply receive both alongside each other.
Am I entitled to unemployment benefit if I am dismissed via a settlement agreement?
In principle, yes, but the settlement agreement must meet a number of conditions: the reason for dismissal must be neutral, the initiative must lie with the employer, there must be no compelling reason for dismissal, and the correct notice period must be observed. Always have the agreement checked before you sign.
What is the notional notice period and why is it so important?
The notional notice period is the statutory notice period that would have applied in the case of ordinary dismissal. The UWV assumes that you received your salary during this period. If the end date in your settlement agreement falls before that period expires, the UWV will defer your unemployment benefit and a gap in income will arise. The period ranges from one month (fewer than 5 years of service) to four months (15 years or more of service).
How much is the redundancy payment in 2026?
In 2026, the redundancy payment amounts to one third of a gross monthly salary for each full year of service. The statutory maximum is €102,000 gross, or one gross annual salary if that is higher. This maximum is index-linked annually.
Are the unemployment benefit rules changing soon?
Yes, there are plans to reduce the maximum duration of unemployment benefit to one year with effect from 1 January 2028 (currently a maximum of 24 months). The government is still consulting with trade unions and employers on the precise details. For 2026, the current rules remain unchanged. Keep track of developments if you are expecting a longer period of unemployment benefit.
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.
