A settlement agreement involving a zero-hours contract often raises more questions than one connected to a standard permanent contract. How many hours are taken into account? Are you entitled to any compensation at all? And what about your unemployment benefit? In short: even as a casual worker, you have full rights when your employment ends by mutual consent, but the details deserve careful attention.
What exactly is a zero-hours contract
With a zero-hours contract, you and your employer do not agree on a fixed number of hours per week or month. You are called in when needed and paid for the hours you actually work. The contract can be for a fixed or indefinite period. It is important to know that zero-hours contracts are not currently prohibited, but strict conditions do apply. After the first 26 weeks, such a contract may only continue if a collective labour agreement expressly permits this. Furthermore, the Minister of Social Affairs and Employment submitted a legislative proposal in May 2025 that would largely abolish zero-hours contracts and replace them with so-called bandwidth contracts specifying a minimum and maximum number of hours. This proposal still needs to be passed by both Houses of Parliament.
Entitlement to a transition payment even on a zero-hours contract
Many casual workers are unaware that they are perfectly entitled to a transition payment. Yet that is the case. From the very first day of employment you accrue a transition payment, provided the termination is initiated by the employer. With a settlement agreement, you can therefore include this payment as part of the agreed terms.
The calculation works slightly differently from a contract with fixed hours. Because you have no set hours, the average monthly salary over the last twelve months is used as the basis. All hours worked and amounts earned are added together and divided by twelve. Holiday pay and other fixed allowances are also included in that calculation. Based on that average, the standard formula then applies: one third of the average monthly salary for each full year of service. The maximum transition payment in 2026 is €102,000 gross.
If you did not work for a period of thirty calendar days or more during the past twelve months due to illness or leave, the reference period for calculating the average salary is extended by one calendar month, so that you are not disadvantaged by that absence.
Points to watch in the content of the settlement agreement
A settlement agreement involving a zero-hours contract contains the same essential elements as any other contract. There are, however, a few points that more frequently go wrong for casual workers:
- Is the initiating party stated? The settlement agreement must expressly state that the initiative to terminate the employment lies with the employer. If this is absent or incorrectly recorded, the UWV risks rejecting your unemployment benefit claim.
- Neutral reason for dismissal Make sure the stated reason for dismissal is one for which you bear no blame, such as economic grounds, a reorganisation, or a difference of opinion.
- Correct notice period The employer’s statutory notice period must be observed. If a shorter period is used, the UWV will push back the start date of your unemployment benefit, leaving you temporarily without income.
- Correct calculation of the transition payment Check that the average salary over the last twelve months has been used as the basis and that holiday pay has been included.
- Outstanding annual leave days and hours Any accrued holiday days or hours must be paid out or offset in the final settlement.
- Suspension from work Agree clearly whether you will still be called in during the notice period or whether you are released from your duties.
Unemployment benefit after a zero-hours contract
Even as a casual worker, you may be eligible for unemployment benefit after your employment has ended by means of a settlement agreement. For this, the settlement agreement must be unemployment-benefit-proof and you must personally meet the unemployment benefit conditions. The most important requirement is the so-called weeks criterion: in the 36 weeks preceding your unemployment, you must have worked for at least 26 weeks. For casual workers with variable hours, this can be difficult to assess precisely, particularly if there have been gaps between successive contracts.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekPlease note that you must register as a jobseeker via werk.nl no later than one week before the end date of your employment, and submit your unemployment benefit claim on the first working day after the end date. Registering late may result in a reduction of your benefit.
Cooling-off period after signing
After signing a settlement agreement, you always have a statutory cooling-off period of fourteen days. Within that period you can revoke the agreement in writing without giving any reason, after which the employment simply continues. If the cooling-off period is not mentioned in the settlement agreement, this period is automatically extended to 21 days. Use this time to have the agreement reviewed if you have not already done so — especially with a zero-hours contract, where the calculations are somewhat more complex than usual.
Practical tips if you receive a settlement agreement
- Never sign immediately: take time to think and seek legal advice before signing.
- Have the average salary over the past twelve months carefully recalculated, including holiday pay.
- Check whether consecutive contracts with the same employer have been included in the calculation of your length of service; contracts that follow one another with a gap of no more than six months are added together.
- Check whether your collective labour agreement contains specific provisions on zero-hours contracts, notice periods, or payments that are more favourable to you.
- Ensure the settlement agreement states the employer’s correct notice period, not the shorter period applicable to the employee.
- Register as a jobseeker with the UWV in good time so that your unemployment benefit starts seamlessly from the end date.
Why Employment Lawyer Eindhoven
At Employment Lawyer Eindhoven, we are well acquainted with the specific pitfalls of settlement agreements involving casual contracts. Whether you have been working as a casual employee for years or have just received a settlement agreement through the post: we are happy to advise you on your position, the correct calculation of your payment, and an unemployment-benefit-proof arrangement. Get in touch without obligation and find out how we can help you. Right here in Eindhoven, with no barriers to entry.
Frequently asked questions
Am I entitled to a transition payment as a zero-hours contract employee?
Yes, even on a zero-hours contract you are entitled to a transition payment from the very first day of your employment, provided the termination is initiated by the employer. The payment is calculated on the basis of the average monthly salary over the last twelve months, including holiday pay and fixed allowances.
How is the average salary calculated for a zero-hours contract for the purposes of the transition payment?
For the calculation, all amounts earned in the twelve months prior to the end date are added together and divided by twelve. That average monthly salary forms the basis. Holiday pay and fixed allowances are included. Were you absent for more than thirty calendar days due to illness or leave? If so, the reference period is extended by one calendar month.
Can I claim unemployment benefit after a settlement agreement on a zero-hours contract?
You can, but conditions apply. The settlement agreement must be unemployment-benefit-proof: the initiative must lie with the employer, there must be no blameworthy reason for dismissal, and the correct notice period must have been observed. In addition, you must personally meet the unemployment benefit weeks criterion: at least 26 weeks of work in the 36 weeks prior to your unemployment.
What is the cooling-off period after signing a settlement agreement?
After signing, you have a statutory cooling-off period of fourteen days in which you can revoke the agreement in writing without giving any reason. If the cooling-off period is not stated in the settlement agreement, a period of 21 days applies automatically. Use this time to have the agreement reviewed by a lawyer.
Do previous zero-hours contracts with the same employer count towards my length of service?
Yes. Successive contracts with the same employer are combined provided the gap between them was no more than six months. This is relevant both for the amount of the transition payment and the duration of any potential unemployment benefit. Always have this checked carefully, as it is frequently overlooked.
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.
