Has your employer offered you a settlement agreement whilst you are struggling with mental health issues? If so, it is especially important to pay close attention. Mental health issues can affect your judgement, and a signed agreement is legally binding. In this article, you will find the points that deserve particular attention in your situation.
What makes mental health issues a special circumstance?
With physical complaints, it is often clearly visible that someone is not fully fit for work. With mental health issues, this is different: it is less apparent from the outside how serious the situation is for you. Nevertheless, burnout, depression or an anxiety disorder can have an enormous impact on your ability to make important decisions.
Employers are sometimes insufficiently aware of this – or take advantage of it. It is therefore important that you are conscious of your own position and take the right steps in good time.
Do you have additional protection as an employee on sick leave?
During illness, including mental health issues, the prohibition on dismissal applies in principle. This means your employer cannot simply terminate the employment contract unilaterally. However, a settlement agreement falls outside this protection: if you sign voluntarily, that protection lapses.
That is precisely why it is so important that you think carefully before you sign. Voluntary consent presupposes that you are capable of making a well-considered decision. If mental health issues severely restrict your freedom of will, this may be legally relevant at a later stage.
Key considerations when signing a settlement agreement during mental health issues
Below you will find the most important points to bear in mind if you are offered a settlement agreement whilst your mental health is not at its best:
- Always take time to reflect. You have a statutory right to a fourteen-day cooling-off period after signing a settlement agreement. Make sure you actually use that time.
- Do not allow yourself to be pressured. An employer cannot force you to decide quickly. If you feel under pressure, that is a signal to be extra cautious.
- Always have the settlement agreement reviewed by a legal professional. Have someone with expertise in employment law go through the agreement before you sign.
- Check the implications for your benefits. Consider unemployment benefit, sickness benefit and any long-term incapacity benefit. A settlement agreement can have significant consequences for your income after employment ends.
- Pay attention to the end date. Does the agreement end before the expiry of your employer’s obligation to continue paying your salary? If so, this could work against you.
- Ask your occupational health physician for a written opinion. A statement regarding your fitness for work and mental capacity may prove useful at a later stage.
- Check the redundancy payment. Has the statutory transition payment been calculated correctly? Have any additional arrangements been made regarding outplacement or a confidentiality clause?
What if you have already signed?
Have you already signed the settlement agreement but are having second thoughts? You have fourteen days to revoke the agreement. You do not need to give a reason – a written notification is sufficient.
Arrange a no-obligation chat and discover how we can help you.
Plan a conversationIn exceptional circumstances, it is also possible to challenge a signed settlement agreement at a later stage – for example, if you can demonstrate that your mental health condition meant you were unable to make a well-considered decision. This is legally complex and requires professional support.
What can you expect from the negotiation process?
Negotiating a settlement agreement is always a stressful process, but with mental health issues it can be particularly burdensome. Nevertheless, it is wise not to simply accept the first offer. Employers often start with a minimal proposal.
Points you can negotiate on:
- The amount of the redundancy payment
- The employment end date
- Continued payment of salary up to the end date
- A neutral or positive reference
- Reimbursement of legal costs
- Outplacement support
You do not have to go through this negotiation process alone. An employment lawyer can negotiate on your behalf or alongside you, so that the burden on you is reduced.
When is a settlement agreement actually a sensible choice?
Not every settlement agreement is a bad thing. Sometimes a settlement agreement offers peace of mind and clarity, particularly when the working relationship has broken down irreparably and returning to the workplace is no longer realistic. But even then, the same applies: make sure the terms are fair and that you understand what you are signing.
For more information about the broader context of illness and a settlement agreement, you can also visit the overview page Settlement agreement during illness: everything you need to know.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we understand that mental health issues are already difficult enough to deal with. The last thing you need on top of that is uncertainty about your legal position. We help you in a calm, practical way to gain clarity on your situation and the options available to you.
Whether you want a settlement agreement reviewed, wish to negotiate, or simply want to talk things through: you are welcome to get in touch with no obligation. We are here for employees in Eindhoven and the Brabant region who are looking for sound legal advice, without any hassle.
Frequently asked questions
Is my employer allowed to offer me a settlement agreement whilst I am suffering from mental health issues?
Yes, they are. An employer is always permitted to propose a settlement agreement, even during illness. However, you are never obliged to sign. The prohibition on dismissal during illness does not apply if you yourself agree to the termination.
What happens to my unemployment benefit if I sign a settlement agreement whilst experiencing mental health issues?
In principle, you can claim unemployment benefit if the settlement agreement has been properly drafted and meets the relevant conditions. The UWV will assess whether you have become unemployed through any fault of your own. Always have the agreement checked on this point.
Can I reverse a settlement agreement if I was not thinking clearly due to mental health issues?
Within fourteen days of signing, you have an unconditional right to revoke the settlement agreement. After that, matters become legally more complex, but in exceptional circumstances it may be possible to invoke a defect of consent. Consult an employment lawyer for advice on this.
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.
