At WS Advocaten, we regularly see that employees achieve a better outcome by not immediately agreeing to the first proposal. Moreover, in practice, it turns out that UWV proceedings do not always lead to a definitive end to the dispute.
Not sign a settlement agreement? no termination
Anyone who does not sign a settlement agreement remains employed. The employer will then have to prove that there is a valid ground for termination.
In the case of a dismissal for business reasons, the employer must prove, among other things: That may seem simple, but in practice, things often go wrong. Employers make mistakes in the proportionality assessment, fail to include comparable positions, or make insufficient efforts to reassign employees.
- that jobs are actually being eliminated;
- that the proportionality principle has been correctly applied;
- that a careful investigation has been conducted to determine whether reassignment is possible;
- that the selection process for termination has been carried out correctly.
The UWV regularly rejects dismissal applications
A UWV procedure is not a mere formality. The UWV critically assesses whether the legal requirements have been met. If the employer’s documentation is not in order, the dismissal application will be rejected.
This means that the employment contract remains in effect and the employer must continue to pay wages.
It is often at that very moment that room for new negotiations opens up. An employer who initially offered limited severance pay may sometimes be willing to go further if a UWV proceeding fails.
Even after receiving a UWV authorization, the employee can still go to court
The most important point that many employees do not realize is that a dismissal authorization from the UWV is not always the final word.
After a dismissal with the UWV’s authorization, the employee may request the subdistrict court to: This option is provided for under Article 7:682 of the Dutch Civil Code.
- reinstate the employment contract; or
- award fair compensation.
The court then independently assesses whether the employer actually met the legal requirements for termination. In doing so, the court is not bound by the UWV’s decision.
The Supreme Court: All Circumstances Count
The fact that courts conduct an independent review is also evident from the case law of the Supreme Court.
In the well-known “New Hairstyle” ruling (Supreme Court, June 30, 2017, ECLI:NL:HR:2017:1187), the Supreme Court ruled that all circumstances of the case must be taken into account when determining fair compensation. The compensation must reflect the actual consequences of the employer’s unlawful conduct.
This ruling continues to play an important role when an employee, following an UWV proceeding, claims that the employer acted with serious culpability.
Judges sometimes overturn UWV decisions
Recent case law also shows that a dismissal approved by the UWV does not automatically mean the employer is legally in the clear.
For example, in ECLI:NL:GHARL:2025:531, the Arnhem-Leeuwarden Court of Appeal reiterated that employers must make a serious and demonstrable effort to reassign employees. If this effort is insufficient, a dismissal decision may still be challenged.
In addition, various court rulings show that errors in workforce representation, job comparisons, or redeployment can still be corrected by a judge even after an UWV proceeding.
A UWV proceeding can actually strengthen your negotiating position with a settlement agreement
Employers often present a settlement agreement as an attractive alternative to a lengthy proceeding. Sometimes that is true. But sometimes the main goal is simply to exert pressure.
Those who do not sign immediately often receive: This can actually strengthen their negotiating position.
- insight into the employer’s arguments;
- the opportunity to present a defense;
- more information about the company’s financial situation;
- a better understanding of the employer’s litigation risks.
Don’t let yourself be intimidated by the threat: “otherwise, we’ll go to the UWV”
The mere fact that an employer threatens to file a claim with the UWV does not mean the termination is legally valid. The UWV may reject the application. And even if the UWV grants permission, the subdistrict court may still intervene.
That is why it is wise never to assess a settlement agreement solely based on the question: “Can the employer go to the UWV?” The far more important question is: How strong is the employer’s case, really?
Conclusion: don’t always a settlement agreement
Refusing to sign a settlement agreement does not automatically result in termination. The employer must first prove its case to the UWV. This is by no means always successful. And even if a termination permit is granted, the labor court judge can still review the UWV’s decision and, in certain cases, award fair compensation or order the reinstatement of the employment contract.
Practice therefore shows that an employee who refuses a settlement agreement is not necessarily worse off. On the contrary: sometimes this actually results in a stronger negotiating position and a significantly better settlement.
WS Advocaten assists employees in negotiations regarding settlement agreements, UWV proceedings, and proceedings before the subdistrict court. An initial assessment often quickly reveals whether the employer’s proposal is reasonable or whether there is room for a better outcome.
Important case law: Supreme Court, June 30, 2017, ECLI:NL:HR:2017:1187 (New Hairstyle); Arnhem-Leeuwarden Court of Appeal, ECLI:NL:GHARL:2025:531; see also the options under Article 7:682 of the Dutch Civil Code following a dismissal by the UWV.
Contact an Employment Law Attorney in Amsterdam
Are you looking for dedicated service and direct, personal contact with an experienced employment law specialist in Amsterdam regarding dismissal via a VSO? Call our specialized attorneys in employment law for questions and legal advice about signing a settlement agreement.