Redundancy Payment and Universal Credit Overlap in Eindhoven: What You Need to Know

If you are dismissed in Eindhoven or the Brabant region, you may be entitled to both a transition payment and unemployment benefit (WW). Many employees assume that one excludes the other, but this is a persistent misconception. In this article you can read exactly how the two interact, where the real pitfalls lie, and what you can do to make sure you do not miss out on a single cent.

The transition payment and unemployment benefit (WW) are completely independent of each other.

The good news is clear: the transition payment is not offset against your unemployment benefit (WW) and does not reduce it. The transition payment is a one-off gross payment made by your employer; the WW is a benefit paid by the UWV once you become unemployed. These two streams run entirely in parallel and have no effect on each other's amount.

Wat de hoogte van jouw transition payment Please note: in 2026 the statutory maximum is €102,000 gross. If your annual salary is higher than that amount, your gross annual salary acts as the cap. The payment accrues at one third of a monthly salary for each full year worked.

What the unemployment benefit (WW) entails in 2026

The unemployment benefit (WW) amounts to 75% of your last-earned salary for the first two months and 70% thereafter. A maximum daily wage applies, meaning the maximum benefit comes to approximately €48,000 per year. If you earn more than that, you will therefore not receive 75% or 70% of your full salary, but the statutory maximum.

The duration of your unemployment benefit (WW) depends on your employment history and age, with a current maximum duration of 24 months. Please note: the government is discussing plans to reduce the maximum WW duration from 2028 onwards. As long as that legislation has not yet been passed, the current rules apply in full.

When the end date in your settlement agreement determines everything

Although the transition payment and unemployment benefit (WW) do not directly affect one another, there is one element that is crucial for your entitlement to WW: the end date of your employment. The UWV always applies a notional notice period. This is the statutory notice period that would apply if your employer had formally terminated the employment contract.

If the end date in your settlement agreement (VSO) is set too early, your unemployment benefit (WW) will start later than your dismissal date, or you may even miss a period during which you have neither salary nor benefit. If the end date is set too late, you will instead receive salary for longer — which can work in your favour. The notional notice period is:

• 1 month for fewer than 5 years of service
• 2 months for between 5 and 10 years of service
• 3 months for between 10 and 15 years of service
• 4 months for 15 or more years of service

The end date in the settlement agreement must be at least equal to this notional notice period, otherwise your unemployment benefit (WW) will start later than you expect.

Conditions your settlement agreement must meet to qualify for unemployment benefit (WW)

Not every settlement agreement automatically entitles you to unemployment benefit (WW). UWV always independently assesses whether the unemployment is the employee's own fault, regardless of what the agreement states. To safeguard your right to unemployment benefit (WW), the settlement agreement must at least meet the following requirements:

• There is no urgent reason (such as theft or refusal to work) for the dismissal
• It is demonstrably the employer who initiated the dismissal
• The settlement agreement states a neutral reason for dismissal, such as economic grounds or a difference of opinion
• The notional notice period has been correctly incorporated into the end date
• You have registered with UWV as a jobseeker no later than one week before the end date
• The 14-day cooling-off period following signing is stated in the settlement agreement

If even one of these elements is missing, you risk a waiting period before your unemployment benefit (WW) commences, or you may lose your entitlement to benefit entirely.

Common mistakes regarding the combination of transition payment and unemployment benefit (WW)

In practice, things frequently go wrong with the combination of a transition payment and unemployment benefit (WW). Employees are often so relieved about the transition payment that they pay insufficient attention to the unemployment benefit (WW) conditions in the settlement agreement. This can prove costly. The most common mistakes are:

• Agreeing too short a notice period, resulting in a gap in your income
• Including an unclear or incorrect reason for dismissal that suggests culpable conduct
• Registering as a jobseeker with UWV too late
• Forgetting to check whether the 14-day cooling-off period is included in the settlement agreement
• Assuming that a higher transition payment automatically means a better unemployment benefit (WW) position — that is not the case

Practical tips for employees in the Eindhoven region

If you work in or around Eindhoven at companies such as ASML, Philips, or Signify, you will regularly encounter reorganisations and the associated settlement agreements (VSOs). In Brabant in particular, it pays to be prepared. A few tips:

• Always have your settlement agreement checked before you sign, even if the transition payment looks correct
• Check the end date against your statutory notice period
• Register with UWV as a jobseeker in good time, even if you are not yet sure whether you will claim unemployment benefit (WW)
• Ask for a neutral reason for dismissal if one is missing or unclear
• Do not accept pressure to sign quickly — you are legally entitled to a 14-day cooling-off period
• Consult an employment lawyer if you have doubts about the combination of your payment and your benefit entitlement

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we know how the interaction between the transition payment and unemployment benefit (WW) works out in practice — including with the major employers in the region. We do not only check whether your transition payment is correct, but also whether the settlement agreement fully safeguards your right to unemployment benefit (WW). This way you avoid unpleasant surprises at the moment you can least afford them.

Have you received a settlement agreement or are you in discussions about dismissal? Contact us without obligation. We are happy to think through your situation with you.

Frequently asked questions

Does the transition payment affect my unemployment benefit (WW)?

No. The transition payment is not offset against your unemployment benefit (WW) and has no effect on the amount of it either. They are two separate payments: the transition payment is paid by your employer, and the unemployment benefit (WW) is paid by UWV. You can receive both at the same time.

What is the maximum transition payment in 2026?

In 2026 the maximum transition payment is €102,000 gross. If your annual salary is higher than €102,000, your gross annual salary applies as the maximum. The payment is calculated on the basis of one third of a monthly salary for each full year worked.

What is a notional notice period and why is it important for my unemployment benefit (WW)?

With a settlement agreement there is no formal notice of dismissal, but the UWV treats it as though notice has been given. The notional notice period is the statutory notice period that would have applied in the case of regular dismissal. If the end date in your settlement agreement is shorter than that period, your unemployment benefit (WW) will start later than expected and you may lose income as a result.

When am I not entitled to unemployment benefit (WW) after signing a settlement agreement?

You are not entitled to unemployment benefit (WW) if you took the initiative for the dismissal yourself, if there was a serious reason (such as theft or grave refusal to work), or if the reason for dismissal stated in the settlement agreement points to culpable conduct. The UWV always makes its own assessment of this, regardless of what the agreement says.

What do I need to arrange in order to receive unemployment benefit (WW) quickly after dismissal?

Register as a jobseeker with the UWV no later than one week before your dismissal date. Make sure that the end date in your settlement agreement respects the notional notice period, that the reason for dismissal is worded neutrally, and that the initiative for the dismissal lies with the employer. If in doubt, have the settlement agreement checked by an employment lawyer before signing.

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.