Settlement Agreement Signed Under Pressure: Can You Still Get Out of It?

Settlement agreement signed under pressure: can you get out of it?

Have you signed a settlement agreement under pressure? In certain circumstances, you may be able to have the agreement reversed. We explain your options.

You have signed the settlement agreement, but in hindsight it doesn't feel right. Perhaps you felt you had little choice, or the pressure from your employer was so great that you simply put your signature down. The question that then arises is: can you still go back on it? The answer is: sometimes yes, but it depends on the circumstances and the point at which you act.

What do we mean by 'signing under pressure'?

Pressure when signing a settlement agreement can take many forms. Sometimes it is subtle: an employer who repeatedly insists, suggests that you will otherwise face dismissal, or indicates that this is your 'last chance'. In other cases the pressure is more direct and clearly unacceptable, for example through intimidation or the provision of incorrect information.

From a legal perspective, it matters what form of pressure was involved. There is a difference between an employer who negotiates firmly with you and one who misleads or threatens you. That distinction determines what options you have to challenge the agreement.

The cooling-off period: your first and simplest way out

Did you know that after signing a settlement agreement you always have fourteen days to reconsider? This applies to employees and is enshrined in law. Within that period you can revoke the agreement in writing without giving any reason. You do not need to prove anything and your employer cannot object to this.

Want to make smart use of that cooling-off period? Send a recorded letter or an email with a read receipt, so that you have proof that you responded in time. Please note: if the cooling-off period is not mentioned in the agreement, you have as many as three weeks to reverse your decision.

After the cooling-off period: what are your options?

Have you let the cooling-off period lapse? That makes things more difficult, but not impossible. In employment law there are legal grounds on which an agreement can be annulled. The most relevant are:

• Dwang of bedreiging: if you were forced to sign by means of serious threats, the agreement may be voidable.
• Bedrog: did your employer deliberately provide you with incorrect information on which you based your decision?
• Abuse of circumstances: this comes into play when you were in a vulnerable position – think of illness, stress or financial hardship – and the employer deliberately took advantage of that.
• Dwaling: you signed on the basis of an incorrect understanding of the facts, through no fault of your own.

Establishing any one of these grounds requires evidence and legal substantiation. That is not always straightforward, but it is certainly not a lost cause from the outset.

Practical steps if you have doubts

Are you in a situation where you have signed a settlement agreement and regret it? Take action as quickly as possible. Every day counts, especially if the cooling-off period is still running.

• Check the date of signing and calculate whether you are still within the fourteen-day period.
• Gather all communications: emails, text messages, letters – everything that demonstrates the pressure applied.
• Write down for yourself what was said and when, so that you have a clear timeline.
• Contact an employment lawyer as soon as possible for an assessment of your situation.
• Revoke the agreement in writing if you are still within the cooling-off period, even if you are still awaiting legal advice.

What does not change by signing?

Many employees believe that a signature on a settlement agreement is final and irreversible. In practice, this is more nuanced. Particularly where there are irregularities in the way the agreement came about, there are legal avenues to challenge this. That can be done through the courts, but also by entering into discussions with the employer on the basis of legal arguments.

For further background information on your rights in relation to a settlement agreement in a dispute, please also refer to the comprehensive guide at Settlement agreement in a conflict situation: your rights and approach.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven, we understand how significant it is to be left with the feeling that you have signed something you did not actually want to sign. We help employees in Eindhoven and the Brabant region to gain a clear picture of their situation and to explore which options are realistic.

Contact us without obligation. Together we will look at your agreement, the circumstances under which you signed it, and what is legally possible. Acting quickly is often the key in such situations.

Frequently asked questions

Can I always reverse a settlement agreement after signing?

Not always, but there are possibilities. Within the statutory cooling-off period of fourteen days, you can always revoke without giving a reason. After that, you must be able to demonstrate a legal ground, such as duress, fraud, or abuse of circumstances.

What is the cooling-off period for a settlement agreement?

After signing, you as an employee have fourteen days' cooling-off period. If this is not stated in the agreement, a period of three weeks even applies. Within that time, you can notify the other party in writing that you are withdrawing your decision.

What constitutes abuse of circumstances in relation to a settlement agreement?

Misuse of circumstances means that your employer knew you were in a vulnerable position – due to illness, financial difficulties, or emotional stress – and deliberately took advantage of that to get you to sign. This can be grounds for having the agreement annulled.

Do I have to go to court to challenge a settlement agreement?

Not necessarily. Sometimes it is already effective to enter into discussions with your employer using legal arguments. If no solution is reached, going to court may be the next step. An employment lawyer can advise you on which approach is most likely to succeed in your situation.

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.