Settlement Agreement Following Summary Dismissal: What Can You Do?

Dismissal with immediate effect and a settlement agreement

Summary dismissal is the most severe form of dismissal under Dutch employment law: your employment contract ends immediately, without a notice period and — in principle — without entitlement to unemployment benefit (WW) or a transition payment. Even so, you do not simply have to accept this. In many cases a settlement agreement offers a realistic way out, allowing you to still claim compensation and safeguard your entitlement to WW.

What makes summary dismissal so far-reaching

When dismissal with immediate effect occurs, your employment ends instantly. Your salary is stopped, you are no longer required to attend work, and you are immediately dependent on your own savings. In addition, UWV regards you as 'culpably unemployed', which means a standard unemployment benefit (WW) claim is quickly rejected. This makes the situation particularly urgent.

At the same time, the law imposes strict requirements on the employer. Under Article 7:677(1) of the Dutch Civil Code, summary dismissal is only valid if there is an urgent reason, the employer gives that dismissal immediately — that is, without delay — and communicates the reason straight away. Urgent reasons include theft, fraud or serious violence. In practice, many summary dismissals do not meet all the statutory requirements, particularly with regard to the immediacy requirement or a careful balancing of interests.

Why employers still offer a settlement agreement

There are also risks for the employer in dismissal with immediate effect. If a court later annuls the dismissal, the employment contract revives with retroactive effect. The employer must then pay all withheld salary — including the statutory increase — and reinstate the employee. That is a situation almost nobody wants.

This is precisely why employers regularly offer a settlement agreement in practice when an employee indicates they wish to challenge their dismissal. Both parties then exchange the uncertainty of legal proceedings for a negotiated arrangement, with a neutral ground for dismissal and a final financial settlement.

What a good settlement agreement must cover

If you agree to a settlement agreement following a summary dismissal, the precise content will determine what you ultimately walk away with. Pay attention at least to the following points:

• Neutrale ontslaggrond: The wording 'difference of opinion regarding the work' or a similarly neutral reason is essential in order to convince UWV that you are not culpably unemployed.
• Fictitious notice period: the end date in the agreement must take into account the notice period applicable to you, so that you can apply for unemployment benefit (WW) immediately afterwards without any waiting period.
• Vergoeding: in the case of ordinary dismissal you are entitled to the statutory transition payment (in 2026 a maximum of € 102,000 gross). With a settlement agreement you can also agree a higher payment with your employer; in that case there is no statutory maximum.
• Openstaande aanspraken: ensure that holiday days, holiday pay and any bonuses are explicitly addressed in the agreement.
• Getuigschrift: request a positive or at least neutral reference letter — this is valuable when applying for your next job.
• Vrijstelling van werk: make sure you are released from your duties with immediate effect, so that you can look for a new job without pressure.
• Confidentiality and full and final settlement: understand what you are signing — full and final settlement means that you cannot submit any further claims afterwards.

Safeguarding your unemployment benefit (WW)

Safeguarding your right to unemployment benefit (WW) is the most important objective for most people. Following a summary dismissal you are in principle not entitled to WW: the UWV regards you as having caused your own unemployment through your own fault. Through a settlement agreement with a neutral ground for dismissal, this can turn out differently. However, the UWV has its own power of investigation and can always make enquiries into the actual circumstances. If the wording in the agreement is not exactly right or the situation raises questions, your WW application may be at risk.

Always have the agreement checked before you sign it. An incorrect date or a wrong ground for dismissal can have far-reaching consequences for your benefit.

The two-week cooling-off period

Have you already signed but are having second thoughts? You are not necessarily too late. Under Article 7:670b of the Dutch Civil Code, you have the right to dissolve a settlement agreement in writing within two weeks of signing, without giving any reason. That cooling-off period exists specifically to protect you, even if you signed under pressure. Use that time wisely: consult an employment lawyer immediately if you have any doubts.

Practical tips following summary dismissal

• Do not sign anything during the dismissal meeting itself; always ask for the dismissal letter stating the urgent reason.
• Object in writing as quickly as possible; make clear that you are contesting the dismissal and that you remain available for work.
• Consult an employment lawyer within a few days — the sooner you take action, the stronger your negotiating position.
• Have any settlement agreement reviewed before you sign, even if your employer is applying time pressure.
• Be mindful of the deadlines: challenging the dismissal before a court must in principle be done within two months of the date of dismissal.
• Keep all communications — emails, letters and app messages — as these may serve as evidence later.

Why Employment Lawyer Eindhoven

Summary dismissal is one of the most stressful situations you can face in the workplace. At Arbeidsjurist Eindhoven we know the local labour market and support employees in Eindhoven and the Brabant region in exactly these kinds of situations. We quickly assess whether the dismissal is legally sound, what your negotiating position is, and how you can reach a settlement agreement that truly protects your interests. Contact us without obligation for an initial consultation — we are happy to think things through with you.

Frequently asked questions

Am I entitled to unemployment benefit (WW) following summary dismissal?

Following summary dismissal, the UWV will in principle regard you as having caused your own unemployment, meaning you will not be entitled to WW benefit. This can change if you successfully contest the dismissal before a court, or if you reach a settlement agreement with your employer that states a neutral reason for dismissal. However, the UWV always has the authority to investigate the actual circumstances of the dismissal. Always have the agreement reviewed by an employment lawyer before you sign.

Can I still negotiate a payment after summary dismissal?

Yes, that is certainly possible. If you contest the dismissal or indicate that you intend to do so, employers will in practice regularly offer a settlement agreement in order to avoid court proceedings. In that agreement you can, in addition to a neutral reason for dismissal, also make arrangements regarding a financial payment, outstanding holiday days and a reference letter. Seek guidance from an employment lawyer to negotiate the best possible terms.

What should I do if I signed a settlement agreement under pressure?

You have a statutory right to dissolve a signed settlement agreement in writing within two weeks of signing, without having to give any reason for doing so. In that case, contact an employment lawyer as quickly as possible to discuss what the best next step is and whether renegotiating or contesting the agreement offers better prospects.

Does summary dismissal affect my transition payment?

In the case of a lawful summary dismissal on grounds of seriously culpable conduct, you are in principle not entitled to the statutory transition payment. However, if the dismissal turns out to be unjustified — or if a settlement agreement is concluded after all — a payment can still be agreed upon. In 2026, the maximum statutory transition payment is €102,000 gross. A settlement agreement can also provide for a higher payment.

Within what time limit must I challenge a summary dismissal?

You have in principle two months from the date of the summary dismissal to challenge it before the subdistrict court. This time limit is mandatory: if you let it lapse, you can in principle no longer request that the dismissal be set aside. Act promptly, therefore, and seek legal advice as soon as possible.

We are happy to think along with you. For advice tailored to your situation, we would be glad to talk. No rights can be derived from the content of this page and it may contain inaccuracies.