In Dutch employment law, a settlement agreement (vaststellingsovereenkomst, VSO) is a mutual agreement between employer and employee to end the employment contract. The notice period in such a VSO determines when the contract actually ends and how this relates to your rights to Dutch unemployment benefits (WW). It also sets the time frame in which outplacement support can be used while you are still employed.
The notice period in a VSO is the period between signing the agreement and the agreed termination date of the employment contract. Even though there is no formal notice as in a regular dismissal, the benefits agency UWV will assess your situation as if the employer had given notice. This is where the concept of the fictitious notice period comes in: UWV looks at the statutory or contractual notice period that would normally apply.
If the agreed end date in the VSO is earlier than the end of this fictitious notice period, UWV usually postpones the start of your WW benefits. The period between the VSO end date and the end of the fictitious notice period is then seen as a time in which the employer should in principle still pay salary. In practice, that salary is often replaced by a lump-sum compensation, but from UWV’s perspective you are not yet unemployed.
Under Dutch law, the employer’s notice period usually depends on the employee’s length of service, whereas the employee’s notice period is often one month, unless a different term is agreed in the contract or collective agreement (cao). When parties sign a VSO, they can in theory agree on any termination date, but UWV will still check what the notice period would have been in a regular dismissal.
For example, if your employer would normally have a three‑month notice period based on your years of service, but the VSO sets an end date only six weeks after signing, there is a gap between the agreed end date and the end of the fictitious notice period. UWV will then only start paying WW after those three months have passed. This is why the termination date in a VSO is often set at the end of the month in which the full notice period ends.
The fictitious notice period is a key concept in the Dutch system of unemployment benefits. UWV assumes that the employer could and should have continued paying salary during the regular notice period. If the VSO end date is earlier than that, UWV treats the missing part of the period as time in which you are not yet entitled to WW. You may then have to bridge this period with your own savings or with part of the compensation you negotiated.
This is why it is so important to include the fictitious notice period in your VSO negotiations. If the end date is aligned with the end of the fictitious period, WW can start immediately after your last salary month. If not, you need to assess whether the offered compensation is sufficient to cover the gap. For many employees, this is a crucial financial and emotional consideration.
The agreed notice period in a VSO also determines how much time there is for outplacement while you are still on the payroll. Outplacement is a structured programme in which a specialised agency such as Care4Careers supports you in finding new, sustainable employment after (or in anticipation of) dismissal. When the period between signing and the end date is long enough, you can use that time to work intensively on your next career step.
Employers often decide to include outplacement explicitly in the VSO, for example by stating that a certain budget will be made available for coaching and job search support. The article on the outplacement process with a settlement agreement (VSO) explains how such a programme typically looks. In terms of notice period, the main question is whether the duration of the outplacement support fits the time until the end of the contract and, if necessary, can continue afterwards.
Imagine you have worked for eight years with a permanent contract and your position becomes redundant due to reorganisation. Your employer proposes a VSO with an end date two months after signing and offers a transition payment. Under Dutch law, the employer would normally have a three‑month notice period. If you accept the two‑month date, the remaining month becomes a fictitious notice period, during which you will not receive WW.
In that situation, you can negotiate either a later end date that includes the full three months or a higher compensation that allows you to bridge the missing month. At the same time, you can ask to include an outplacement budget in the VSO so that you can start working with a coach immediately. This way, the notice period is used effectively to prepare your next step.
In most Dutch VSO situations, the statutory transition payment is the minimum reference point for negotiations. However, the practical value of that payment depends strongly on how it relates to the notice period and any fictitious period. If the VSO end date is earlier than the regular notice period, part of the compensation may effectively be used to finance the missing salary months.
For many employees it is therefore helpful to distinguish between three elements: money that compensates for the fictitious notice period, the net transition payment as a form of severance, and a dedicated budget for outplacement support. Structuring the agreement in this way creates transparency and makes it easier to see whether the total package is sufficient for both your financial security and your career development.
The notice period in a Dutch settlement agreement is a strategic element rather than a mere formality. It influences when your WW benefits can start, how far your compensation will stretch, and how much time you have for guided career transition through outplacement. By understanding the link between statutory notice period, fictitious notice period and the agreed VSO end date, you can avoid unnecessary financial risks.
When the notice period, compensation and outplacement support are designed as a coherent whole, the VSO becomes more than an exit document. It turns into a bridge between an employment relationship that is ending and a new, sustainable position in the labour market. That is precisely where an experienced outplacement and career specialist such as Care4Careers can make a tangible difference.
“Thanks to Care4Careers, I was able to take the right career step. Their personal approach and knowledge of the regional labor market really made the difference.”
Headquarters
Care4Careers B.V.
Lage Celandine 248
Behind the Fish Market 78
Sales & Post Office
Eigenhaardweg 8
7811 LR Emmen
The local branches are in:
- Amsterdam
- Breda
- Eindhoven
- Emmen
- The Hague
- Gouda
- Groningen
- Hengelo
- Leeuwarden
- Maastricht
- Nijmegen
- Rotterdam
- Utrecht
- Flushing
- Zwolle
Want to make an appointment at one of our locations?
Contact our head office.