SETTLEMENT AGREEMENT

Settlement agreement and retaining WW-benefits

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When entering into a settlement agreement, how do you ensure retention of unemployment benefits? We explain in this article.

When entering into a settlement agreement (VSO), it is important to ensure that you retain your right to WW-benefits. The UWV sets strict requirements to determine your eligibility for this benefit. In this blog, we discuss what you need to pay attention to in order not to be classified as culpable unemployment.

What does culpable unemployment mean?

The UWV may determine that you are culpably unemployed if the termination of your employment contract is your own fault. This is the case, for example, if:

You resign yourself without a valid reason.
You were fired due to serious culpable behavior, such as theft or repeated refusal to work.

Are you found to be culpably unemployed? Then you are not entitled to WW-benefits.

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How do you ensure a WW-friendly settlement agreement?

A settlement agreement must be carefully drafted to prevent the UWV from designating your unemployment as culpable. The following points are essential:

The initiative has to be taken by the employer
The termination of your employment must be at the initiative of the employer. This must be explicitly included in the settlement agreement. If it appears that you proposed the agreement, the UWV may conclude that you became unemployed voluntarily.

No culpable actions
It must not be stated in the settlement agreement that your behavior or performance is the reason for the dismissal. If any doubt arises about this, the UWV may investigate it and conclude that you are culpably unemployed.

Correct notice period
The end date of your employment must match the statutory or contractual notice period. If the notice period is not followed, this can cause problems with your WW-application. So check carefully that the notice period is correctly included in the settlement agreement.

Correct wording of the reason for termination
The reason for termination must be neutrally and carefully worded, for example: “The employment contract is terminated due to business reasons.” Avoid terms such as “at your own request” or “serious misconduct,” as this may lead to rejection of your unemployment insurance application.

Get your settlement agreement checked

A small mistake in the settlement agreement can have major consequences for your entitlement to unemployment benefits. Therefore, it is always wise to have the settlement agreement checked by an employment lawyer. We will ensure that the agreement meets the UWV's requirements and that your rights are properly safeguarded. Do you have questions about your settlement agreement? Please contact us.

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