Exemption from work with a settlement agreement explained

Vrijstelling van werk bij een vaststellingsovereenkomst

Does your settlement agreement state that you are exempted from work? Then you no longer have to report to the workplace, while your salary continues to be paid until the official end date of your employment. That sounds like an advantage, but there are also drawbacks. In this article, you will read exactly what exemption from work means in a settlement agreement Content and what to look out for.

What exemption from work precisely means

Exemption from work means that as an employee, you are no longer obliged to perform your duties, while the employment contract continues to run until the agreed end date. You remain formally employed during that period and therefore retain your right to salary. The exemption usually commences at the moment the settlement agreement is signed, but a later start date is also possible.

It is important to distinguish between a release from work and suspension or being placed on leave. The latter two are unilateral measures imposed by an employer, often as a disciplinary measure. A release in a settlement agreement is, in fact, a mutual agreement, part of the dismissal arrangement as a whole.

Why is it agreed

There are various reasons why being released from work finds its way into a settlement agreement. Sometimes the working relationship is so disrupted that a return to the workplace is undesirable for both parties. In other cases, the employer simply wants to give the employee space to look for a new job. It may also be the case that no suitable work is available due to a reorganisation.

For you as an employee, the exemption period offers practical advantages: you can apply for jobs while your income continues, you no longer have to return to a potentially tense work environment, and you have time to calmly consider your next step.

Your rights to wages and terms of employment

During your period of exemption, you are entitled to full salary payment up to the end date of your employment contract. This also applies to fixed allowances and emoluments. In addition, your other employment conditions will generally remain in force, such as the accrual of holiday pay. Also check in the settlement agreement whether any bonus or thirteenth month that falls within the exemption period has been included; you are generally entitled to this.

Please also bear in mind that you formally remain employed during the exemption period. This means that obligations such as confidentiality and any secondary employment clauses will continue to apply. Do you wish to start working elsewhere before the official end date? Arrange this explicitly in the agreement, as being released from work does not automatically grant permission to work for another employer.

Holiday days during the exemption

This is one of the most sensitive points. Employers regularly include a stipulation in the settlement agreement whereby outstanding holiday days are deemed to have been taken during the notice period. This can cost you as an employee a significant amount of money if you have built up a large backlog of leave.

Important to note: being exempt from work does not automatically lead to the taking of holiday days. Furthermore, statutory holiday days can only be considered as taken if you have expressly and unambiguously agreed to this. Vague wording in the agreement is insufficient. If nothing is laid down in the settlement agreement regarding holiday days, the employer is obliged to pay out outstanding days in the final settlement.

Consequences for your unemployment benefit

Many employees wonder if being temporarily released from work has consequences for their unemployment benefit (WW) rights. The answer is reassuring: the release has no negative impact on your claim for unemployment benefits. The employment contract continues, after all, and you continue to receive your salary. After the official end date, you can simply apply for an unemployment benefit, provided the other conditions are met. However, it is important that the end date in the settlement agreement aligns with the applicable notice period; otherwise, the UWV may impose a waiting period.

Practical tips for you, the employee

• Check whether the exemption is explicitly included in the settlement agreement with an effective date.
• Ensure holiday entitlement is clearly documented; know how many hours are outstanding before you sign.
• Check whether your pension accrual continues during the exemption and, if necessary, include this as a point for negotiation.
• Enquire about the arrangements for company assets such as a company car, laptop, or phone.
• Do you want to work elsewhere during the exemption period? Ensure this is explicitly arranged in the agreement and, if necessary, request the waiving of a clause on secondary employment or a non-compete clause.
• Remain available for any handover tasks if that is stipulated in the agreement, but ensure that the scope thereof is clearly defined.
• Have the full settlement agreement reviewed by an employment law specialist before you sign it.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven, we know the ins and outs of settlement agreements and the associated exemption regulations. Whether you have doubts about the holiday allowance clause, want to negotiate better terms, or simply want certainty before you sign: we'll gladly help you think it through. Personal, direct, and without legal jargon. Contact us without obligation and discover what we can do for your situation.

Frequently asked questions

Do I have the right to continued payment of wages during a period of exemption from work?

Yes. As long as the employment contract is still running, you are entitled to full payment of your salary. The exemption does not release the employer from their obligation to pay wages. Make sure this is explicitly laid down in the settlement agreement.

Will my holiday days automatically be taken during the notice period?

No, that is not automatically the case. Exemption from work does not mean you are taking holiday days. For statutory holiday days, explicit and unambiguous consent is required. If the settlement agreement says nothing about holiday days, the employer must pay them out in the final settlement.

May I work elsewhere during my period of exemption from work?

Not just any. You are still formally employed, meaning any secondary employment clause or non-compete clause remains in effect. If you wish to start working for another employer before the official end date, ensure this is explicitly arranged in the settlement agreement.

Does being exempt from work affect my unemployment benefit?

No, the exemption itself does not negatively affect your unemployment benefit rights, as long as the employment continues in good order and the end date in the settlement agreement aligns with the applicable notice period. This prevents the UWV from imposing a waiting period.

Is an exemption from work mandatory in a settlement agreement?

No, there is no legal obligation to include a waiver clause. It is a negotiation point. You can explicitly ask for this during the negotiations of the settlement agreement; many employers are willing to agree to this.

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.