If you are ill and your employer presents you with a settlement agreement, you are under no obligation to accept it. Signing a settlement agreement is always voluntary, even during illness. Yet many people feel pressured or are uncertain about the consequences of refusing. In this article, you will learn when refusing is entirely within your rights — and what to watch out for.
A settlement agreement is always voluntary
A settlement agreement is reached by mutual consent. That may sound formal, but it simply means: both parties must agree. As an employee, you are therefore never obliged to sign. Your employer cannot force you to accept a settlement agreement, even if you have been off sick for a prolonged period or if your employer suggests that dismissal would otherwise be inevitable.
This is not a minor point of law, but a fundamental principle of employment law. It does not matter how the situation feels in the workplace or what has been said verbally: as long as you have not signed, there is no agreement.
When is it wise to refuse?
There are situations in which refusing is not only your right, but also the wisest course of action. Consider the following circumstances:
- The compensation offered falls well short of the statutory transition payment.
- The agreement contains terms that could jeopardise your entitlement to unemployment benefit or statutory sick pay.
- You are still entitled to continued salary payment during illness and this is not properly addressed in the settlement agreement.
- The termination date is incorrect or allows insufficient time for recovery.
- You are being pressured to sign quickly, without being given adequate time to consider.
- The stated reason for dismissal does not reflect what is actually happening.
In all of these cases, it is advisable not to sign immediately and to seek legal advice first. Always consult a specialist who can examine the details of your specific situation.
What are the consequences of refusing?
Many employees fear that refusing will immediately lead to problems. That is understandable, but the reality is more nuanced. If you do not sign the settlement agreement, nothing about your employment contract changes in the first instance. Your employer will then need to pursue a different course of action if they still wish to proceed with dismissal.
What can your employer do instead?
If you refuse, your employer has a limited number of options. They can initiate dismissal proceedings through the UWV (Employee Insurance Agency) or through the cantonal court. During illness, however, a prohibition on dismissal applies, which means that such proceedings will not simply succeed in most cases. As a sick employee, you are therefore well protected.
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Plan a conversationYour employer may also re-enter negotiations and put forward an improved settlement agreement. On occasion, this is precisely the desired outcome of refusing: securing better terms.
Does refusing affect your benefits?
No, refusing a settlement agreement does not in itself have any negative consequences for your entitlement to unemployment benefit or statutory sick pay. After all, you have not taken any action yourself to terminate your employment. This is different from resigning of your own accord. As long as your employer does not lawfully terminate the employment contract, you retain your right to continued salary payment during illness.
Take note: what you may and may not say
There is one situation you should be cautious about: if your employer asks whether you are willing to cooperate with the termination of your employment and you clearly say yes, this may be interpreted legally as consent. Be mindful of what you communicate before you have received proper advice.
Practical tips if you are presented with a settlement agreement during illness:
- Never make a decision under time pressure; you are legally entitled to at least two weeks to reconsider after signing, but also ask for time to think before signing.
- Always request a written copy so that you can review it at your leisure.
- Have the contents checked by an employment law specialist before you respond.
- Put any objections or questions in writing so that you always have a verifiable record.
- Never rely on verbal assurances from your employer regarding benefits or compensation.
Further background information about your rights in this situation can also be found in the comprehensive overview Settlement agreement during illness: everything you need to know.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we assist employees in the Eindhoven and Brabant region who are faced with a settlement agreement during illness. We take a clear-headed look at your situation, explain exactly what your position is, and help you make a well-considered decision — without unnecessary pressure. Whether you wish to refuse, negotiate, or simply want to understand what signing means for your benefits: we are here for you.
Contact us without obligation for an initial consultation. Together, we will determine what is the wisest course of action in your situation.
Frequently asked questions
Can I refuse a settlement agreement during illness?
Yes, you are never obliged to sign a settlement agreement. A settlement agreement always requires your voluntary consent, even if you are ill.
What happens if I refuse the settlement agreement?
Your employment simply continues. Your employer will then need to follow a different route, such as proceedings through the UWV or the cantonal court. During illness, however, a prohibition on dismissal applies which protects you.
Will I lose my unemployment benefit if I refuse to sign?
No. Refusing a settlement agreement has no negative impact on your entitlement to unemployment benefit. After all, you have not terminated the employment yourself.
How long do I have to consider a settlement agreement?
After signing, you are legally entitled to two weeks in which to reconsider your decision. However, you can also request additional time before signing. Use that time to seek legal advice.
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.
