No consent required: when can you refuse a settlement agreement during illness?

Are you allowed to refuse a settlement agreement (VSO) when you are ill?

If you are ill and your employer presents you with a settlement agreement, you are not obliged to agree to it. Signing a settlement agreement is always voluntary, even during illness. Nevertheless, many people feel pressured or have doubts about the consequences of refusing. In this article you can read when refusing is entirely within your rights and what you should look 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 are on long-term sick leave or if your employer indicates that dismissal would otherwise be inevitable.

This is not a minor legal detail, but a fundamental principle of employment law. It does not matter how the situation at work feels 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 offered payment is well below the statutory transition payment.
• The agreement contains provisions that jeopardise your entitlement to unemployment benefit (WW) or sickness benefit.
• You still have a right to continued payment of wages during illness, and this is not dealt with correctly in the settlement agreement.
• The dismissal date is incorrect or allows too little time for recovery.
• Pressure is being put on you to sign quickly, without being given sufficient time to consider.
• The description of the reason for dismissal does not match what is actually going on.

In all of these cases, it is wise 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 are afraid 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 have to follow a different route if they still wish to proceed to dismissal.

What can your employer then do?

If you refuse, your employer has a limited number of options. They can initiate dismissal proceedings through the UWV or through the subdistrict court. During sick leave, however, a prohibition on notice applies, which means that in most cases those procedures will not simply succeed. As an employee on sick leave, you are therefore well protected.

Your employer may also reopen negotiations and present an improved settlement agreement. Sometimes that is precisely the desired outcome of refusing: securing better terms.

Does refusing have any consequences for your benefit?

No, refusing a settlement agreement does not in itself have any negative consequences for your entitlement to unemployment benefit (WW) or Sickness Benefit. After all, you have not taken any action yourself to end your employment. This is different from resigning yourself. As long as the employer does not lawfully terminate the employment contract, you retain your right to continued payment of salary during illness.

Please note: what you may and may not say

There is one situation in which you need to be careful: if your employer asks whether you are willing to cooperate with termination and you clearly say yes, this may be interpreted legally as consent. Be cautious about what you communicate before you have received proper advice.

Practical tips if you are presented with a settlement agreement during illness:

• Never make the decision under time pressure; you are legally entitled to at least two weeks to reconsider after signing, but also ask for time to think things over before you sign.
• Always request a written copy so that you can study it at your leisure.
• Have the contents checked by an employment law specialist before you respond.
• Confirm any objections or questions in writing, so that you always have a demonstrable paper trail.
• Never rely on verbal assurances from your employer regarding benefits or payments.

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 Employment 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 considered decision, without unnecessary pressure. Whether you wish to refuse, negotiate, or simply want to know what signing means for your benefit: we are here for you.

Contact us without obligation for an initial consultation. Together we will look at what is the wisest course of action in your situation.

Frequently asked questions

Am I allowed to 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 to sign the settlement agreement?

Your employment simply continues. Your employer will then have to follow a different route, such as a procedure through UWV or the subdistrict court. During illness, however, a prohibition on dismissal applies that protects you.

Will I lose my unemployment benefit (WW) if I refuse to sign?

No. Refusing to sign a settlement agreement has no negative effect on your entitlement to unemployment benefit (WW). After all, you have not ended the employment yourself.

How much time do I have to consider a settlement agreement?

After signing, you have a statutory two-week cooling-off period during which you can reverse your decision. However, you can also request extra time before signing. Use that time to seek legal advice.

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.