Entitlement to Redundancy Pay and Unemployment Benefit Simultaneously: What You Need to Know

Upon dismissal, two questions immediately arise: are you entitled to a transition payment and can you simultaneously apply for unemployment benefit (WW)? The answer is yes – both arrangements can exist alongside each other. Nevertheless, there are a few crucial conditions to be aware of, as a minor error in the dismissal paperwork can prove costly.

The transition payment and unemployment benefit (WW) are two entirely separate schemes.

A common misconception is that a transition payment is deducted from your unemployment benefit (WW), or that your entitlement to WW lapses as soon as you receive a payment. That is not correct. The transition payment is an amount that your employer pays you upon termination of the employment contract. The unemployment benefit (WW) is subsequently paid by UWV. The two are entirely separate: the payment is not offset against your benefit and you do not need to declare the transition payment as income in your WW application.

In brief: upon dismissal you are in principle entitled to both, provided you meet the relevant conditions.

When are you entitled to a transition payment

The entitlement to a transition payment arises as soon as the employer takes the initiative to terminate the employment contract or not to renew a fixed-term contract. This applies from the very first working day – there is no longer a minimum period of service required. In 2026, the maximum transition payment is €102,000 gross, or one gross annual salary if that is higher.

The calculation is always: one third of a monthly salary for each full year worked. The longer you have been employed, the higher the amount – up to the statutory maximum.

There are exceptions where you have no entitlement to a transition payment:

• You resign yourself without the employer having given cause for this.
• You were dismissed summarily on account of an urgent reason that is entirely attributable to you.
• You have reached the state pension (AOW) age at the time of dismissal.
• You were under 18 years of age and worked fewer than twelve hours per week.

When are you entitled to unemployment benefit (WW)

Unemployment benefit (WW) is an employee insurance scheme that provides you with a temporary income if you lose your job through no fault of your own. To be eligible, you must meet the so-called weeks requirement: in the 36 weeks before becoming unemployed, you must have worked for at least 26 weeks. In addition, you must not have become unemployed through your own fault.

In the case of a settlement agreement (dismissal by mutual consent), the right to unemployment benefit (WW) remains intact in principle, provided the agreement is drawn up correctly. The reason for dismissal must be neutral, the initiative must demonstrably have come from the employer, and there must be no question of an urgent cause.

The notional notice period – the critical point to watch

One point that is very often overlooked in a dismissal involving a settlement agreement is the notional notice period. The UWV assumes that you received your salary during the statutory notice period that would have applied in the case of a regular dismissal. If your unemployment benefit (WW) starts before that period has elapsed, an income gap arises: you temporarily receive neither a salary nor unemployment benefit (WW).

The notional notice period depends on your years of service:

• Fewer than 5 years of service: 1 month's notice period.
• 5 to 10 years of service: 2 months' notice period.
• 10 to 15 years of service: 3 months' notice period.
• 15 years or more of service: 4 months' notice period.

The end date in your settlement agreement must therefore be at least equal to the date on which this notional notice period expires. If the end date is set too early, the UWV will defer your unemployment benefit (WW) payment. You will then miss both salary and benefit for that period.

What is changing about unemployment benefit (WW) in the coming years

It is worth knowing that the unemployment benefit (WW) rules may change significantly in the coming years. The coalition agreement 2026–2030 provides that the maximum duration of unemployment benefit (WW) will be reduced to one year with effect from 1 January 2028. Currently, that maximum duration is still 24 months. The government will be entering into further discussions with trade unions and employers about the precise details, so the situation remains subject to change for the time being. Keep this in mind if you are currently facing dismissal and expect to need unemployment benefit (WW) for a longer period.

Practical tips to safeguard both entitlements

If you want to secure both your transition payment and your unemployment benefit (WW) following dismissal, bear the following in mind:

• Always check that the correct notice period is stated in the settlement agreement; an end date that is too early will cost you unemployment benefit (WW) days.
• Make sure the reason for dismissal is described in neutral terms and that it is demonstrably the employer who took the initiative.
• Register as a jobseeker with UWV no later than one week before your last working day.
• Never sign under time pressure; after signing you have a statutory 14-day cooling-off period (Art. 7:670b paragraph 2 of the Dutch Civil Code) in which to revoke the settlement agreement in writing.
• Always have the settlement agreement reviewed by an employment law specialist before you sign.
• Check whether your collective labour agreement (cao) contains deviating provisions regarding the transition payment or notice period.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven, we know how quickly things can go wrong with an apparently straightforward settlement agreement. An incorrect end date, an awkwardly worded reason for dismissal, or a missing clause — and you could lose hundreds of euros in benefit. We are familiar with the local labour market in Eindhoven and the Brabant region and can help you quickly and personally. Have you received a dismissal proposal, or do you want to know whether your entitlement to a transition payment and unemployment benefit (WW) is properly protected? Contact us without obligation — we would be happy to look at your situation together with you.

Frequently asked questions

Will my transition payment be deducted from my unemployment benefit (WW)?

No. The transition payment and the unemployment benefit (WW) are entirely separate from each other. You do not need to declare the transition payment as income to UWV and the amount is not offset against your benefit. You simply receive both alongside each other.

Am I entitled to unemployment benefit (WW) if my dismissal is arranged through a settlement agreement?

In principle yes, but the settlement agreement must satisfy a number of conditions: the reason for dismissal must be neutral, the initiative must lie with the employer, there must be no urgent cause, and the correct notice period must be observed. Always have the agreement reviewed before you sign.

What is the notional notice period and why is it so important?

The notional notice period is the statutory notice period that would have applied in the event of regular dismissal. UWV assumes that you received your salary during this period. If the end date in your settlement agreement falls before that period has elapsed, UWV will defer your unemployment benefit (WW) and an income gap will arise. The period increases from one month (fewer than 5 years of service) to four months (15 years of service or more).

How much is the transition payment in 2026?

In 2026, the transition payment amounts to one third of a gross monthly salary for each full year of service completed. The statutory maximum is €102,000 gross, or one gross annual salary if that is higher. This maximum is indexed annually.

Are the unemployment benefit (WW) rules changing soon?

Yes, there are plans to limit the maximum unemployment benefit (WW) duration to one year with effect from 1 January 2028 (currently a maximum of 24 months). The precise details are still being discussed between the cabinet, trade unions, and employers. For 2026, the current rules remain unchanged. Keep an eye on developments if you are anticipating a longer period of unemployment benefit (WW).

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.