Cooling-off period for a settlement agreement during illness: use your rights wisely

Cooling-off period for a settlement agreement during illness

Even with a settlement agreement during illness, you have a statutory cooling-off period. Use that period wisely and read below how to make the most of your rights.

If you are ill and your employer offers you a settlement agreement, you have a statutory fourteen days after signing to withdraw from it. That cooling-off period is not a formality, but an important safeguard — especially if illness prevents you from thinking clearly about the consequences. Make deliberate use of that time and make sure you are properly informed.

What is the statutory cooling-off period for a settlement agreement?

In the Netherlands, Article 7:670b of the Dutch Civil Code provides for a cooling-off period of fourteen days after you have signed a settlement agreement. Within that period you may dissolve the agreement in writing, without having to give a reason. You only need to send a letter or email to your employer stating that you are withdrawing from the agreement.

If the cooling-off period is not mentioned in the agreement itself, the period is automatically extended to three weeks. This is an additional safeguard that the legislature has deliberately built in.

Why is the cooling-off period especially important when you are ill?

Illness brings stress with it. You are not at your physical or mental best, and that makes it easier to take hasty decisions. An employer may seize that moment to put a proposal to you that is favourable to them but disadvantageous to you.

Think of situations where you:

• have not been able to think carefully about the consequences for your unemployment benefit (WW);
• do not know whether you are entitled to a Sickness Benefit (Ziektewet) payment after leaving employment;
• have not checked the amount of the transition payment;
• have accepted unclear arrangements regarding the end date or continued payment of salary;
• you signed under pressure without seeking legal advice.

It is precisely in those circumstances that it is wise to make full use of the cooling-off period and obtain professional advice after all.

What can you do during the cooling-off period?

The fourteen days following signing are valuable. Use them purposefully. Here are a few concrete steps you can take:

• Have the agreement reviewed by an employment lawyer. They will check whether all the terms are correct and whether any unfavourable clauses are included.
• Ask about the consequences for your benefits. Think about unemployment benefit (WW), sickness benefit, or a disability benefit. This differs depending on your situation.
• Check the transition payment. Is the amount correct? Has your full period of employment been taken into account?
• Onderhandel alsnog if you feel that the terms are not fair. Signing is not the end of the conversation.
• Herroep op tijd if you reach the conclusion that signing is not in your interest. Do this in writing and keep proof of dispatch.

How do you correctly withdraw from a settlement agreement?

You do not need to send a complicated legal letter. A clear, written notification is sufficient. Send your withdrawal preferably by recorded post and by email, so that you can demonstrate that you responded in good time. State in it that you are withdrawing from the agreement on the basis of Article 7:670b of the Dutch Civil Code and keep a copy for yourself.

Please note: after withdrawal, the settlement agreement is cancelled. Your employment contract then simply continues. Your employer may subsequently initiate a new procedure, but that takes time and effort — and gives you room to strengthen your position.

Does the cooling-off period apply even if you have already been negotiating?

Yes. It does not matter how long the negotiations have lasted or how many times you have already discussed the terms. The fourteen-day cooling-off period only begins to run from the moment you have actually signed. Earlier discussions or a verbal agreement make no difference to this.

Would you like to know more about the broader context of a settlement agreement when you are ill? If so, please also read the comprehensive overview via Settlement agreement during illness: everything you need to know.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we help employees in the Eindhoven region and throughout Brabant to understand and protect their rights. Whether you have doubts about a signed agreement, wish to negotiate better terms, or simply want to know where you stand — we are happy to think things through with you.

Contact us without obligation. Together we will look at the smartest course of action in your situation.

Frequently asked questions

How long is the cooling-off period after signing a settlement agreement?

The statutory cooling-off period is fourteen days after signing. If the agreement makes no mention of this period, it automatically becomes three weeks.

Can I withdraw from the settlement agreement if I am ill?

Yes, illness has no effect on your right to withdraw from the agreement. You can always do so within the cooling-off period, regardless of your health situation.

What happens after withdrawal from the settlement agreement?

After withdrawal the agreement is void and your employment simply continues. Your employer may choose to initiate a new dismissal procedure, but is not obliged to do so.

Do I need to give a reason for withdrawing?

No, you do not need to give a reason. A written notification submitted within the period is sufficient to dissolve the agreement.

Can I still negotiate better terms during the cooling-off period?

Yes, you can. You can inform your employer that you are withdrawing from the agreement and at the same time indicate that you are open to a new discussion about the terms. It is advisable to have an employment lawyer assist you with this.

We are happy to think along with you. For advice tailored to your situation, we would be glad to talk. No rights can be derived from the content of this page and it may contain inaccuracies.