You have signed a settlement agreement, but something doesn’t feel right. Perhaps you felt pressured, or you have since realised that you were not properly informed. Fortunately, a signature on a mutual consent dismissal is not always the definitive end of the matter. In this article, you can read when you can challenge the agreement, what legal routes are available, and what the best first step is.
What mutual consent dismissal actually means
With a mutual consent dismissal, the employer and employee agree by mutual consultation to terminate the employment. The arrangements are recorded in writing in a settlement agreement (VSO). Without that written agreement, the dismissal is simply not valid. As long as you do not sign, your employer cannot simply show you the door: they must then initiate an official dismissal procedure through the UWV or the subdistrict court.
The statutory cooling-off period after signing
Have you already signed but want to reconsider? Then there is good news. The law grants you a cooling-off period of fourteen days after signing. Within that period, you may dissolve the agreement without giving any reason. You only need to send a written statement to your employer — an email or WhatsApp message is sufficient for this purpose. As soon as your employer receives that statement, the VSO is off the table and your employment simply continues.
Please note one important detail: the cooling-off period is enshrined in law under Article 7:670b paragraph 2 of the Dutch Civil Code. If the cooling-off period is not stated in the settlement agreement, the period is automatically extended to twenty-one days. Your employer is obliged to inform you of this right in writing. The period begins to run from the moment written agreement has been reached, not necessarily from the date of your signature. This can make a difference in practice, so check carefully when your cooling-off period actually begins.
Would you also like to know during the cooling-off period whether the Settlement agreement is correct in substance? Have it assessed quickly by an employment law specialist so that you can make a well-considered decision.
Challenging the agreement after the cooling-off period has expired
Has the cooling-off period already passed? In that case, a signed VSO is in principle binding on both parties. Nevertheless, there are exceptions: the law provides, in a number of specific situations, the possibility of challenging the agreement at a later stage on the grounds of a so-called defect of consent. The most common grounds are mistake, fraud, duress, and abuse of circumstances.
Mistake
Mistake occurs when you signed the VSO on the basis of an incorrect or incomplete understanding of the situation. This may have happened because your employer gave you incorrect information, or because they withheld relevant facts that they ought to have disclosed. Consider a situation in which you were ill at the time of signing and your employer did not draw your attention to the prohibition on dismissal during illness, or to the possible consequences for your unemployment or sickness benefit. Courts assess a claim of mistake in relation to a settlement agreement with considerable restraint: not every incorrect assumption automatically leads to the agreement being set aside.
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Plan a conversationFraud and duress
Did your employer deliberately mislead you by intentionally providing incorrect information or concealing crucial facts in order to induce you to sign? In that case, there may be grounds for fraud. Duress goes a step further: in that situation, your employer put pressure on you in a manner that qualifies as unlawful under the law. Both situations occur less frequently in practice, but they are valid grounds for having the agreement set aside.
Abuse of circumstances
Abuse of circumstances refers to situations in which you were in a vulnerable position at the time of signing, and your employer took advantage of that. A well-known example is the employee who was ill or incapacitated for work and nonetheless signed a VSO, while the employer knew that they could barely, if at all, foresee the consequences. The court then examines critically whether your free will was influenced.
When is a challenge likely to succeed
Not every dissatisfied employee has a strong case. Whether a challenge succeeds depends on the specific circumstances. Below are a number of situations that more frequently lead to success in practice:
- You were incapacitated for work at the time of signing and your employer did not draw your attention to the prohibition on dismissal or the risks to your benefit entitlements.
- Your employer gave you incorrect information about, for example, the start date of your unemployment benefit, placing you in a different financial situation than expected.
- The cooling-off period is absent from the VSO, meaning you automatically have the right to a longer period of twenty-one days.
- You were under such pressure that you had no genuine free choice when signing the agreement.
- There was fraud: your employer deliberately withheld crucial facts in order to induce you to sign.
What to do if you wish to challenge the VSO
Acting quickly is essential. The more time that passes after signing, the smaller the chance that a challenge will succeed. Make sure to do the following:
- Keep all communication with your employer relating to the dismissal, such as emails, messages, and letters.
- Note precisely when you signed the VSO and when you received any pressure or incorrect information.
- Make use of the statutory cooling-off period if it has not yet expired; a simple written message to your employer is already sufficient.
- Contact an employment law specialist as soon as possible to assess whether your situation has good prospects for further steps.
- Do not simply agree to new proposals from your employer before you have obtained legal advice.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we are here for everyone in the region dealing with an unjust or unclear mutual consent dismissal. We assess your situation quickly and concretely, explain your options in plain language, and stand by your side whether you wish to negotiate or initiate proceedings. No complex legal jargon — just straightforward advice tailored to your situation. Get in touch without obligation and we will look together at the best next step for you.
Frequently asked questions
Can I still dissolve a settlement agreement after signing it?
Yes, you can. After signing, you have a statutory cooling-off period of fourteen days under Article 7:670b(2) of the Dutch Civil Code. Within that period, you may terminate the agreement in writing without giving any reason. If your employer has not included the cooling-off period in the VSO, a period of twenty-one days applies instead.
What are valid grounds for challenging a settlement agreement?
The most common legal grounds are mistake (you agreed on the basis of incorrect or missing information), fraud (your employer deliberately misled you), duress (you were placed under unlawful pressure), and abuse of circumstances (for example, you were ill and unable to properly assess the consequences). Whether a challenge succeeds depends strongly on the specific facts of your situation.
What happens if I make use of the cooling-off period?
As soon as you notify your employer in writing within the cooling-off period that you are dissolving the VSO, the agreement is null and void. Your employment then simply continues. Your employer can subsequently only initiate dismissal proceedings through the UWV or the subdistrict court.
How quickly do I need to act if I want to challenge the VSO?
As quickly as possible. The statutory cooling-off period of fourteen (or twenty-one) days passes quickly. But even if that period has already expired, the same applies: the longer you wait before invoking grounds such as mistake, fraud, or abuse of circumstances, the more difficult it becomes to mount a successful challenge. Contact an employment law specialist immediately.
What if I was ill when I signed the settlement agreement?
That is a situation that may afford additional legal protection. If you were incapacitated for work at the time of signing and your employer did not draw your attention to the prohibition on dismissal during illness or to the risks to your unemployment or sickness benefit entitlements, there may be grounds for mistake or abuse of circumstances. Have your situation assessed by an employment law specialist as soon as possible.
We're happy to help you brainstorm ideas. For advice tailored to your specific situation, we'd be happy to sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.
