Settlement Agreement Following Summary Dismissal: What Are Your Options

Dismissal with immediate effect is the most drastic form of dismissal that exists: you lose your job with immediate effect, without a notice period and in principle without entitlement to unemployment benefit (WW) or a transition payment. Yet you are not automatically left to fend for yourself. A settlement agreement often offers a way out that protects your financial position and avoids costly legal proceedings.

What dismissal with immediate effect actually means

In the case of dismissal with immediate effect, your employment ends with immediate effect. The law imposes strict requirements: 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 immediately. Think of serious situations such as theft, fraud, or aggression in the workplace. Only when all three of these conditions are met is the dismissal legally valid. In practice, employers regularly stumble on this, for example because the timing is wrong or the urgent reason is insufficiently substantiated.

The financial consequences are immediately felt: your salary stops with immediate effect and you will normally not be entitled to unemployment benefit (WW). That makes acting quickly not a luxury, but a necessity.

Why a settlement agreement is also possible after dismissal with immediate effect

It may sound contradictory, but it is often precisely after a dismissal with immediate effect that there is room for an amicable settlement. An employer generally has no interest in lengthy legal proceedings either. If the dismissal does not withstand scrutiny, the employer risks reinstatement of the employment contract and continued payment of outstanding wages, including the statutory increase that the court may impose. That risk makes employers willing to negotiate in many cases after all.

Through a settlement agreement, the employer and employee jointly record the terms on which the employment ends. The great advantage is that you can agree on a neutral ground for dismissal, which opens the way to unemployment benefit (WW). When assessing a settlement agreement, UWV considers whether you are culpably unemployed. If the reason for dismissal is formulated in neutral terms, your chances of receiving unemployment benefit (WW) are considerably better.

Securing your unemployment benefit (WW) through the settlement agreement

The wording in a settlement agreement is decisive when it comes to your entitlement to unemployment benefit (WW). If it states a neutral reason, such as a difference of opinion about the work, UWV will assess that you are not culpably unemployed and you will in principle be eligible for a benefit. However, UWV has its own investigative powers and may request information about the actual circumstances of the dismissal. An incorrectly worded settlement agreement or a missing fictional notice period can result in you still being left without a benefit. Always have the wording assessed by a specialist before you sign.

Can you also negotiate a severance payment

In the case of a justified and correctly given dismissal with immediate effect, you are in principle not entitled to a transition payment. But the situation is rarely black and white. If there is any doubt about the legal validity of the dismissal, you as an employee have a strong negotiating position. Courts apply strict standards when assessing dismissal with immediate effect, which means that an employer would rather settle than risk the dismissal being set aside. In that case it is perfectly possible to agree on a payment through a settlement agreement after all. The maximum statutory transition payment in 2026 amounts to €102,000 gross, although the exact amount in your situation will depend on your salary and years of service.

You must not let the two-month period lapse

If you wish to challenge the dismissal with immediate effect before the subdistrict court, a limitation period of two months from the date of dismissal applies. If you miss this deadline, the dismissal becomes final and you can no longer take any legal action against it. Make smart use of that time: immediately establish what took place, gather relevant documents, and contact an employment lawyer as soon as possible. Particularly if the choice is between going to court or concluding a settlement agreement, you want to make that decision carefully.

If you have already signed, there is still hope

Did you sign a settlement agreement under pressure without properly reviewing it? There may still be options. As an employee, you have a statutory cooling-off period of 14 days after signing a settlement agreement during which you can withdraw from the agreement without giving any reason. If no cooling-off clause is included in the settlement agreement, that period even extends to 21 days. If you withdraw in time and in writing, your employment contract is revived. Always use that time to seek legal advice.

Practical steps you can take immediately

• Respond calmly and contest the dismissal straight away, 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 time limit starts running immediately.
• Have the settlement agreement checked for the grounds for dismissal, the fictitious notice period, and whether unemployment benefit (WW) entitlement is safeguarded before you sign.
• Check that the 14-day cooling-off period has been correctly included in the settlement agreement.
• Negotiate the terms: the payment, end date, reference letter, and release from work duties are all open to discussion.
• Have you already signed? If so, exercise your right of withdrawal within the statutory time limit if necessary.

Why Employment Lawyer Eindhoven

Dismissal with immediate effect is one of the most urgent situations in employment law. At Arbeidsjurist Eindhoven we know the local labour market as well as the legal opportunities and risks in these kinds of cases. We quickly assess whether the dismissal withstands legal scrutiny, what room there is for negotiation, and what a settlement agreement should look like in your specific situation in order to protect your unemployment benefit (WW) entitlement and any payment to the fullest extent possible. Do you live or work in Eindhoven or the Brabant region and would you like to know where you stand? Get in touch for a no-obligation initial consultation.

Frequently asked questions

Can I still claim unemployment benefit (WW) after summary dismissal?

Not automatically. In the case of a legally valid summary dismissal, you are considered to have become unemployed through your own fault and UWV will refuse an unemployment benefit (WW) claim. However, through a settlement agreement with a neutral ground for dismissal, it is often still possible to qualify for unemployment benefit (WW). The exact wording in the settlement agreement is crucial in this regard. 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 file a petition with the subdistrict court. This is a so-called forfeiture period: once it expires, the dismissal becomes final and you can no longer take any legal action against it. Contact a specialist as soon as possible.

Am I entitled to a transition payment if I have been summarily dismissed?

In the case of a lawful and valid summary dismissal, you are in principle not entitled to a transition payment. However, if there is doubt about the validity of the dismissal, you may still agree on a payment through negotiations over a settlement agreement. An employment lawyer can assess how strong your position is.

Am I allowed to 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 could 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?

In that case, 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 mentioned in the settlement agreement, a period of 21 days applies. If you withdraw in writing and in time, your employment contract is revived. Use that time to obtain legal advice after all.

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.