If you are ill and your employer offers you a settlement agreement, you have a statutory fourteen days after signing to change your mind. That cooling-off period is not a formality — it is an important safeguard, especially when illness prevents you from thinking clearly about the consequences. Use that time deliberately 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 Civil Code provides 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 simply need to send a letter or e-mail to your employer stating that you are withdrawing from the agreement.
If the agreement itself does not draw your attention to this cooling-off period, 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 during illness?
Illness brings stress. You are not at your physical or mental best, and that makes it easier to make hasty decisions. An employer may seize that moment to put a proposal to you that suits them but is to your detriment.
Think of situations where you:
- have not been able to think carefully about the consequences for your unemployment benefit;
- do not know whether you are entitled to a Sickness Benefit after leaving employment;
- have not checked the amount of the statutory transition payment;
- have accepted unclear arrangements regarding the end date or continued salary payment;
- signed under pressure without seeking legal advice.
Precisely in those circumstances it is wise to make full use of the cooling-off period and to seek professional advice after all.
What can you do during the cooling-off period?
The fourteen days after 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 arrangements are correct and whether there are any disadvantageous clauses.
- Ask about the consequences for your benefits. Consider unemployment benefit, Sickness Benefit, or incapacity benefit. This differs from situation to situation.
- Check the transition payment. Is the amount correct? Has your full period of employment been taken into account?
- Negotiate after all if you feel the terms are not fair. Signing is not the end of the conversation.
- Withdraw in time if you conclude 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 complex legal letter. A clear, written notification is sufficient. Send your withdrawal preferably by recorded post and by e-mail, so that you can demonstrate you responded in time. State in it that you are withdrawing from the agreement on the basis of Article 7:670b of the Civil Code, and keep a copy for yourself.
Arrange a no-obligation chat and discover how we can help you.
Plan a conversationPlease note: once you withdraw, the settlement agreement is null and void. Your employment contract then simply continues. Your employer may subsequently initiate a new dismissal 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 content. The fourteen-day cooling-off period only begins to run from the moment you actually sign. 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? Read the comprehensive overview at Settlement agreement during illness: everything you need to know.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven we help employees in the Eindhoven region and throughout Brabant to understand and protect their rights. Whether you are uncertain about an agreement you have signed, 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 for 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 is automatically extended to 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 state of health.
What happens after I withdraw from the settlement agreement?
After withdrawal the agreement is void and your employment contract simply continues. Your employer may then 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 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 fresh discussion about the terms. It is advisable to have an employment lawyer support you in doing so.
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.
