Summary dismissal is the most drastic form of dismissal that exists: you lose your job with immediate effect, without a notice period and in principle without any right to unemployment benefit or a statutory redundancy payment. Yet you are not automatically left to face this alone. A settlement agreement very often provides a way out that protects your financial position and avoids costly legal proceedings.
What summary dismissal actually means
With summary dismissal, your employment ends with immediate effect. The law sets strict requirements for this: there must be what is known as an urgent reason, the dismissal must be given without delay, and that reason must be communicated to you straight away. Think of serious situations such as theft, fraud, or workplace violence. Only when all three of these conditions are met is the dismissal legally valid. In practice, employers frequently stumble on this – for example because the timing is off or the urgent reason has not been sufficiently substantiated.
The financial consequences are felt immediately: your salary stops at once and you will normally not be entitled to unemployment benefit. That makes acting quickly not a luxury, but a necessity.
Why a settlement agreement is still possible after summary dismissal
It may sound contradictory, but it is precisely after summary dismissal that there is often room for an amicable settlement. An employer generally has no interest in protracted legal proceedings either. If the dismissal does not stand up to scrutiny, the employer risks the reinstatement of the employment contract and the payment of outstanding wages, including the statutory uplift that a court may impose. That risk makes employers willing to negotiate in many cases.
Through a settlement agreement, employer and employee jointly set out the terms on which the employment comes to an end. The great advantage is that you can agree on a neutral ground for dismissal, which opens the door to an unemployment benefit claim. When assessing a settlement agreement, the UWV (the Dutch Employee Insurance Agency) considers whether you are at fault for becoming unemployed. If the reason for dismissal is worded neutrally, your chances of receiving unemployment benefit are considerably better.
Protecting your unemployment benefit entitlement through the settlement agreement
The wording in a settlement agreement is everything when it comes to your right to unemployment benefit. If it states a neutral reason – such as a difference of opinion about the work – the UWV will consider that you are not at fault for your unemployment and you will in principle be eligible for benefit. However, the UWV has its own investigatory powers and may request information about the actual circumstances of the dismissal. A poorly worded settlement agreement or a missing fictitious notice period can mean you still end up without benefit. Always have the wording reviewed by a specialist before you sign.
Can you also negotiate a severance payment?
In the case of a justified and correctly executed summary dismissal, you are not in principle entitled to a statutory redundancy payment. But the situation is rarely black and white. If there is any doubt about the legal validity of the dismissal, you as the employee hold a strong negotiating position. Courts apply strict standards when assessing summary dismissal, which means an employer would rather settle than risk having the dismissal set aside. In that scenario, it is perfectly possible to agree on a payment through a settlement agreement. The maximum statutory redundancy payment in 2026 is €102,000 gross, although the actual amount in your situation will depend on your salary and length of service.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekDo not let the two-month deadline pass
If you wish to challenge a summary dismissal before the subdistrict court, a forfeiture period of two months from the date of dismissal applies. Miss this deadline and the dismissal becomes final – there is nothing more you can do about it legally. Use that time wisely: immediately establish what happened, gather relevant documents, and contact an employment lawyer as soon as possible. Especially if the choice is between going to court or entering into a settlement agreement, you want to make that decision carefully.
Already signed? There is still hope
Did you sign a settlement agreement under pressure without properly reviewing it? There may still be room to act. As an employee, you have a statutory cooling-off period of 14 days after signing a settlement agreement, during which you can withdraw from it without giving any reason. If no cooling-off clause is included in the settlement agreement, that period extends to 21 days. If you withdraw in time and in writing, your employment contract revives. Always use that time to seek legal advice.
Practical steps you can take right away
- Respond calmly and challenge the dismissal immediately, but do not sign anything yet.
- Keep all documents: the dismissal letter, correspondence, and any witness statements.
- Engage an employment lawyer within one to two days; the two-month deadline starts ticking immediately.
- Have the settlement agreement checked for the ground of dismissal, the fictitious notice period, and the protection of your unemployment benefit entitlement before you sign.
- Check that the 14-day cooling-off period is correctly included in the settlement agreement.
- Negotiate the terms: a payment, end date, reference letter, and release from work are all open for discussion.
- Already signed? If necessary, exercise your right of withdrawal within the statutory deadline.
Why Employment Lawyer Eindhoven?
Summary dismissal is one of the most urgent situations in employment law. At Employment Lawyer Eindhoven, we know the local labour market as well as the legal opportunities and risks in cases like these. We quickly assess whether the dismissal meets the legal requirements, what room there is for negotiation, and what a settlement agreement should look like in your situation to maximally protect your unemployment benefit entitlement and any payment you may be owed. Do you live or work in Eindhoven or the Brabant region and want to know where you stand? Get in touch for a no-obligation initial consultation.
Frequently asked questions
Can I still claim unemployment benefit after summary dismissal?
Not automatically. In the case of a legally valid summary dismissal, you are considered to be at fault for your unemployment and the UWV will refuse an unemployment benefit claim. However, through a settlement agreement with a neutral ground for dismissal, it is often still possible to become eligible for benefit. The precise wording in the settlement agreement is crucial. Always have the text checked by an employment lawyer before you sign.
How long do I have to challenge a summary dismissal?
You have two months from the date of dismissal to submit an application to the subdistrict court. This is what is known as a forfeiture period: once it expires, the dismissal becomes final and there is nothing more you can do about it legally. Contact a specialist as soon as possible.
Am I entitled to a statutory redundancy payment if I have been summarily dismissed?
In the case of a justified and legally valid summary dismissal, you are not in principle entitled to a statutory redundancy payment. However, if there is any doubt about the legal validity of the dismissal, you may still be able to agree on a payment through settlement agreement negotiations. An employment lawyer can assess how strong your position is.
Can I refuse a settlement agreement after summary dismissal?
Yes, you are never obliged to sign a settlement agreement. Refusing does mean that the situation may be resolved through the courts. This can work in your favour if the dismissal does not meet the legal requirements, but it also carries risks and uncertainty. Always seek advice before making a final decision.
What if I have already signed a settlement agreement after summary dismissal?
As an employee, you have a statutory cooling-off period of 14 days in which to withdraw from the agreement without giving any reason. If the cooling-off clause is not included in the settlement agreement, a period of 21 days applies instead. If you withdraw in writing and within the deadline, your employment contract revives. Use that time to seek legal advice.
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.
