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Notice period in a settlement agreement

3 minuten mr. Jeroen Kaspers kantoor 17 maart 2020 2025

When an employment contract is terminated by means of a settlement agreement, it is important that the employer but especially the employee observe the fictitious notice period. In the settlement agreement, this means that arrangements are made about the period during which the employment relationship continues. After the end date (often the last day of the notice period), the employment contract between employer and employee is then definitively terminated.

Notice period:

The employment contract between parties will end by mutual consent, at the initiative of the employer, per [date], hereinafter referred to as ”termination date”. In determining this termination date, account has been taken of the notice period applicable to the employer. Until the termination date, salary and holiday pay will be paid.

The importance of observing the fictitious notice period is great. Namely, if you as an employee apply for a UI-benefit, the UWV will take into account the (legal) notice period. This is what the UWV calls the fictitious notice period. UWV assumes that employer and employee observe the notice period that applies to them by law. Therefore, the UI-benefit only starts after this notice period has passed. During the notice period, the employer is deemed to continue paying the salary.

If an employee agrees to the (earlier) termination of his employment before the end of the notice period, the employee runs into a ui-gap. After all, the benefit only starts at the moment the notice period that parties should have observed has passed. What notice periods apply to the employee and which to the employer can be found here.

Therefore, ensure that the correct notice period is used. For the employee, this can have major financial consequences. Also unintentionally, the employer can accidentally use the wrong notice period. In a legal assessment of the settlement agreement, it is checked and (financial) problems are prevented afterwards. For drafting/checking a settlement agreement, you can contact us. We gladly help you (employer or employee).

mr. J.A. Kaspers

mr. J.A. (Jeroen) Kaspers


Jurist en Mediator

Jeroen is specialist ontslag en arbeidsrecht. Met succes onderhandelt Jeroen bij vaststellingsovereenkomsten of disfunctioneren. Komt u er niet uit? Raadpleeg Jeroen via kaspers@wolderwijd-juristen.nl of 036 522 7007.

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