Cooling-off period after signing a settlement agreement in Eindhoven

Cooling-off period after signing a settlement agreement

Have you just signed a settlement agreement and are you having second thoughts? There is good news: the law gives you, as an employee, a statutory cooling-off period during which you can reverse your decision. This right is laid down in Article 7:670b, paragraph 2 of the Dutch Civil Code and applies equally if you live in the Eindhoven region.

What does the statutory cooling-off period entail exactly

Zodra jij een settlement agreement once you have signed, you have in principle fourteen days to dissolve the agreement. You are not required to give your employer a reason for doing so. A written statement — for example a recorded-delivery letter or an e-mail — is sufficient to cancel the agreement.

Is the cooling-off period not mentioned in the settlement agreement? In that case the period is automatically extended to 21 days. This is a statutory sanction designed to encourage employers always to include the cooling-off period. Bear in mind too that the period runs in calendar days. Weekends and public holidays count in the normal way.

When does the cooling-off period start to run

This is a point where many employees go wrong. The cooling-off period begins at the moment the settlement agreement has been 'concluded'. That sounds straightforward, but in practice it regularly gives rise to dispute. Several judges have given rulings on this matter.

In some cases the court ruled that the cooling-off period had already started to run from the moment you gave your unconditional written agreement — for example by e-mail — to all the terms, and therefore before you had formally signed the agreement. Do not therefore focus solely on the date shown on the document. The moment at which you gave your agreement may in reality be earlier than you think. If in doubt, always have this checked by an employment lawyer.

How to exercise your cooling-off period correctly

If you wish to exercise your right, there are a few practical steps you must not skip. A verbal notification is not sufficient; everything must be done in writing.

• Send a written statement to your employer, preferably by registered post and by e-mail to protect your evidential position.
• State clearly that you are exercising your statutory cooling-off period in accordance with Article 7:670b(2) of the Dutch Civil Code.
• Note the date of dispatch and retain proof of receipt.
• Ask your employer to confirm receipt in writing.
• Do not wait until the last day; every day you lose increases the risk of the deadline expiring.
• Engage an employment lawyer as soon as possible to assess whether cancelling the agreement is the right course of action in your situation.

What are the consequences of cancellation

If you cancel the settlement agreement within the cooling-off period, the employment contract revives. The settlement agreement is deemed never to have come into existence and you are simply back in employment. Your employer is then once again obliged to pay your salary.

This may sound appealing, but consider the other side as well. If the employment relationship was already considerably strained, reversing the settlement agreement can make working together considerably more complicated. Sometimes it is wiser to use the cooling-off period to negotiate better terms rather than to set the agreement aside entirely. A lawyer can help you weigh up those considerations.

The cooling-off period is not unlimited

The law sets a clear restriction: you may only exercise the cooling-off period once every six months. If you have cancelled a settlement agreement and conclude a new settlement agreement with the same employer within those same six months, you are no longer entitled to a new cooling-off period. Courts have ruled on this on multiple occasions and are consistent: the restriction applies strictly.

Furthermore, the cooling-off period applies exclusively to employees. Your employer cannot unilaterally cancel the settlement agreement after it has been signed. And if you resign yourself — without a settlement agreement being involved — there is equally no statutory cooling-off period.

Cooling-off period before signing

In addition to the statutory cooling-off period after signing, you also have the right to a reasonable period to respond before you sign the settlement agreement. There is no statutory minimum period, but in practice one to two weeks is the norm. Employers sometimes put pressure on you to sign quickly — this is a tactic you should recognise. Do not let yourself be rushed. You are never obliged to agree immediately to a settlement agreement that has been offered to you.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we understand the dynamics of the Brabant labour market and know how employers in the region operate. Whether you are uncertain about a settlement agreement you have already signed, or you wish to use the cooling-off period to negotiate better terms — we will think things through with you quickly and practically. Contact us without obligation for an initial assessment of your situation.

Frequently asked questions

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

The statutory cooling-off period is 14 days, calculated from the moment the settlement agreement was concluded. If the cooling-off period is not mentioned in the agreement, the period is automatically extended to 21 days. The period runs in calendar days, so weekends and public holidays are included.

Do I need to give a reason if I wish to dissolve the settlement agreement?

No. Under Article 7:670b(2) of the Dutch Civil Code you may dissolve the settlement agreement within the cooling-off period without giving any reason. A written statement to your employer is sufficient. It is, however, advisable to send this by recorded post and to keep proof of receipt.

When does the cooling-off period start exactly?

The cooling-off period starts at the moment the settlement agreement has been 'concluded'. This is not always the date on which you physically signed the document. If you had already agreed unconditionally in writing — for example by e-mail — to all the terms at an earlier point, the period may have started at that moment. If you are in any doubt, have this checked by an employment lawyer.

What happens if I dissolve the settlement agreement within the cooling-off period?

The employment contract revives and the settlement agreement is deemed never to have been concluded. You are then simply back in employment and your employer is obliged to pay your salary. Do think carefully about the consequences for the employment relationship before taking this step.

Can I make use of the cooling-off period more than once?

No. The law provides that you may make use of the cooling-off period at most once every six months. If you conclude a new settlement agreement with the same employer within six months of a previous dissolution, you no longer have the right to a new cooling-off period.

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.