Fictitious Notice Period in a Settlement Agreement: What Does It Mean?

The term 'vso opzegtermijn fictief' refers to the fictitious notice period that must be included in a Dutch settlement agreement (vaststellingsovereenkomst, or VSO). This period is crucial for determining when entitlement to unemployment benefits (WW) starts after terminating employment. In this article, you'll learn how the fictitious notice period works, why it is essential, and how it affects outplacement processes in the Netherlands.

What is a fictitious notice period in a settlement agreement?

When an employer and employee end an employment relationship by mutual agreement through a settlement agreement (VSO), they set an end date for the contract. According to Dutch law and the UWV (Employee Insurance Agency), this end date must take into account the statutory notice period that would apply in a regular dismissal. Since no formal notice is given, this period is called 'fictitious'. The UWV uses it to determine from which date you are eligible for unemployment benefits.

The fictitious notice period is a legally required timeframe that starts after both parties have signed the VSO. Its purpose is to prevent misuse of the Dutch social security system. If ignored, an employee might have a gap between the end of their contract and the start of their WW benefit.

A common misconception is that no notice period is required in a VSO. In reality, if the fictitious notice period is too short or omitted, you may face a period without income before your WW payments commence.

Therefore, it is crucial to correctly include the fictitious notice period in your settlement agreement, especially during an outplacement process.

Why does the fictitious notice period exist?

The fictitious notice period was created to ensure employees do not receive unemployment benefits sooner than in a regular dismissal situation. The UWV strictly enforces this, as the agency manages unemployment benefits in the Netherlands and must safeguard the social security system from undue strain.

The length of the notice period is determined by Dutch Civil Code and collective labour agreements (CAOs). Typically, it is the same as the notice period for regular dismissal, based on the duration of employment. The UWV uses this period when assessing your WW eligibility after a VSO.

This is especially important in outplacement, where employees often wish to start job transition support immediately after leaving their employer. A correctly calculated fictitious notice period prevents delays or uncertainty about your income support.

How is the fictitious notice period calculated?

The length of the fictitious notice period depends on the statutory or contractual notice period applicable to your situation. For most employees, the legal period is one month, but longer service can stretch it to four months. The key point: the employer's standard notice period applies as the fictitious notice period in the VSO.

For example, if you have worked eight years and your notice period is three months, and the settlement agreement is signed on July 1, the contract's end date must be at least three months later. Otherwise, the WW benefit will only start after the correct period has elapsed.

Practical example: Annemarie worked at her company for ten years. She signed a VSO on May 15. With a four-month notice period, her fictitious notice period runs until September 15 — only then can her WW benefit begin. Ensuring the agreement reflects this prevents income gaps.

If you have a complex CAO or unusual contract, it can be wise to consult an HR or legal expert for an accurate calculation.

The role of the fictitious notice period in outplacement

Outplacement is career transition support provided to employees facing (potential) dismissal. The fictitious notice period determines when you can claim unemployment benefits and start your outplacement program with income security.

For example, if you are made redundant and sign a VSO, your outplacement can start during the fictitious notice period, giving you time and resources to find new employment while still receiving salary.

Some employers allow employees to be released from duties with continued pay during this period, enabling full focus on outplacement. This arrangement benefits everyone, ensuring a smoother transition.

Especially in cases of redundancy or reorganization, clear agreements about the fictitious notice period are vital so your outplacement support starts at the right time.

Common pitfalls and misunderstandings

A frequent pitfall is omitting or miscalculating the fictitious notice period in the VSO. This may result in the WW benefit starting later than expected, causing an income gap. Always have your agreement reviewed by an HR or legal professional.

Another mistake is believing that notice periods don't apply to VSOs. In fact, the UWV checks carefully that the correct period is observed. You are personally responsible for any resulting delays in benefits.

Sometimes, employers suggest immediate departure without the notice period. While tempting, this can unintentionally create a gap in your income. Open communication and clear agreements prevent these issues.

Practical tips for including the fictitious notice period

To avoid problems, always include the fictitious notice period specifically in the VSO. Steps include:

• Check your legal or CAO notice period.
• State the employment end date in the VSO, factoring in the fictitious notice period.
• Have your agreement reviewed by a lawyer or HR adviser with knowledge of settlement agreements and UWV procedures.
• Ask if you will be exempt from duties and continue to receive salary during the period, allowing you to focus on outplacement.
• Coordinate your outplacement program with the fictitious notice period, using the available time and resources efficiently.

Following these steps reduces financial risk and supports a smoother career transition.

Fictitious vs. actual notice period

The difference between fictitious and actual notice periods lies mainly in the formal dismissal process. In regular dismissals, the employer gives notice and observes the notice period. With a VSO, the contract ends by mutual agreement without formal notice, so the UWV uses a fictitious notice period.

The duration is usually the same, but the timing for WW entitlement may differ. For actual dismissal, the period counts from the formal notice. For a VSO, it counts from the signing date until the end of the fictitious notice period.

Understanding this distinction is critical to avoid confusion about when your unemployment benefits start.

Fictitious notice period and your WW rights

A correctly stated fictitious notice period in your settlement agreement determines your WW benefit eligibility. The UWV checks adherence to the notice period when reviewing your application. If the period is too short, you must wait before benefits begin. If correct, you can receive WW directly after your contract ends.

Before signing, always check the fictitious notice period in your VSO to ensure proper planning of your finances and outplacement support.

For more on safeguarding your WW rights with a VSO, see Settlement Agreement and Safeguarding Unemployment Benefits: Essential Insights.

The fictitious notice period as part of sustainable outplacement

Outplacement programs by organizations such as Care4Careers take the fictitious notice period into account to provide seamless career transition support. Starting outplacement during the paid period helps ensure financial security while you take steps toward your next career.

In complex cases, for example redundancy or reorganization, specialists can help you understand the implications and avoid falling between the cracks.

This thoughtful approach offers time for reflection and orientation, enabling employees to move forward with confidence.

Summary

The fictitious notice period in a settlement agreement is a crucial concept affecting your right to unemployment benefits and the timing of your outplacement program. Stating the correct period in your VSO prevents financial issues and provides clarity for both parties. By coordinating your outplacement with the fictitious notice period, you create a strong foundation for a successful career transition.