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 enshrined in Article 7:670b(2) of the Dutch Civil Code and applies equally if you work in the Eindhoven area.
The statutory cooling-off period actually means
Once you have signed a Settlement agreement, You have a period of fourteen days in principle to dissolve the agreement. You are not obliged to give your employer any reason for doing so. A written declaration – for example, by registered post or email – is sufficient to cancel the agreement.
If the cooling-off period is not mentioned in the settlement agreement, 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 that the period runs in calendar days — weekends and public holidays count as normal.
When does the cooling-off period begin
This is a point where many employees get it wrong. The cooling-off period begins from the moment the settlement agreement has been ‘concluded’. This sounds straightforward, but in practice it frequently gives rise to disputes. Several judges have ruled on this matter.
In some cases, the court has held that the cooling-off period started to run from the moment you unconditionally agreed in writing – for example, by email – to all the terms, and therefore before you had formally signed the agreement. Do not focus solely on the date shown on the document. The moment of acceptance may in reality be earlier than you think. If in doubt, always have this checked by an employment law solicitor.
How to exercise the cooling-off period correctly
If you wish to exercise your right, there are several practical steps you must not skip. An oral notification is not sufficient; everything must be in writing.
- Send a written statement to your employer, preferably by recorded delivery and by email for evidential purposes.
- I am hereby expressly exercising the statutory cooling-off period pursuant to Article 7:670b(2) of the Dutch Civil Code.
- Note the date of posting and retain proof of dispatch.
- Please confirm receipt in writing.
- Don't wait until the last day; each day you delay increases the risk of the period expiring.
- Engage an employment law solicitor as quickly as possible to assess whether dissolving the agreement is the right course of action in your situation.
What are the consequences of dissolution?
If you dissolve the settlement agreement within the cooling-off period, the employment contract is revived. The settlement agreement is deemed never to have been concluded, and you are simply back in employment. Your employer is once again obliged to pay your salary.
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Plan a conversationThis sounds attractive, but consider the other side of the coin as well. If the employment relationship was already considerably strained, reversing the settlement agreement can make working together significantly more complicated. Sometimes it is wiser to use the cooling-off period to negotiate better terms rather than to abandon the agreement entirely. A solicitor can help you weigh up that decision.
The cooling-off period is not indefinite
The law sets a clear limitation: you may exercise the cooling-off period only once every six months. If you have dissolved a settlement agreement and conclude a new one with the same employer within those six months, you no longer have the right to a fresh cooling-off period. Judges have ruled on this on multiple occasions and are consistent: the limitation 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 the involvement of a settlement agreement – there is also no statutory cooling-off period.
Cooling-off period before signing
In addition to the statutory cooling-off period after signing, there is also a right to a reasonable period to consider the agreement before you sign it. There is no statutory minimum period, but in practice one to two weeks is regarded as normal. Employers sometimes put pressure on employees to sign quickly — this is a tactic you should recognise. Do not be rushed. You are never obliged to agree immediately to a settlement agreement that has been put to you.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we understand the dynamics of the Brabant labour market and know how employers in the region operate. Whether you have doubts about a settlement agreement you have already signed or wish to use the cooling-off period to negotiate better terms — we will think alongside you quickly and practically. Contact us without obligation for an initial assessment of your situation.
Frequently asked questions
The statutory cooling-off period after signing a settlement agreement is seven days.
The statutory cooling-off period is 14 days, calculated from the moment the settlement agreement has been concluded. If the cooling-off period is not stated in the agreement, the period is automatically extended to 21 days. The period runs in calendar days, so weekends and public holidays are included.
No, you do not need to give a reason if you wish to dissolve the settlement agreement.
No. Under Article 7:670b(2) of the Dutch Civil Code, you may cancel the settlement agreement within the cooling-off period without giving any reason. A written statement to your employer is sufficient. It is nevertheless advisable to send it by recorded delivery and to retain proof of receipt.
When exactly does the cooling-off period start?
The cooling-off period begins to run from the moment the settlement agreement has been 'concluded'. That is not always the date on which you physically signed the document. If you had already agreed unconditionally in writing – for example by email – to all the terms at an earlier point, the period may have started running at that moment. If in doubt, have this checked by an employment law solicitor.
What happens if I dissolve the settlement agreement within the cooling-off period?
The employment contract is revived, and the settlement agreement is deemed never to have been entered into. You are then simply back in employment, and your employer is obliged to pay your salary. Please consider the consequences for your employment relationship carefully before taking this step.
Can I make use of the cooling-off period more than once?
No. The law states that you can exercise the cooling-off period a maximum of once every six months. If you enter into a new settlement agreement with the same employer within six months of a previous termination, you will no longer have the right to a new cooling-off period.
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