Settlement agreement check?

You can sign a settlement agreement if you are sick. However, you run the risk of not being eligible for unemployment or sickness benefits. If you are fit for work by the end date or can work elsewhere, there are options for entering into a settlement agreement. It is important to seek advice in advance before signing an agreement. 

After 104 weeks of illness, the employer's obligation to continue paying salary stops. In that case, the employer will also be able to choose to offer a settlement agreement. The alternative is to start a dismissal procedure with the UWV. Often parties mutually settle the dismissal after 104 weeks of illness with a settlement agreement. Read more in the blog sick leave with a settlement agreement.

Do you not accept the settlement agreement? Then the employment contract continues. You will have to perform the work and the employer must pay the salary. If the employer thinks he has a legitimate reason to fire you, for example because of dysfunction or sees the need because of bad business economics he may want to fire you unilaterally. If the UWV issues a dismissal permit or the subdistrict court grants permission only then may the employment contract be terminated unilaterally. In that case, you will only be entitled to a transition payment but you will not be culpably unemployed.

In 90% of cases, we can achieve better terms and a higher severance payment. In principle, it does not have to cost the employee anything because we will ask the employer to reimburse the costs. By the way, the quick scan is completely free of charge. We can then determine together whether we can be of added value.

You can revoke a signed settlement agreement. You can do so within 14 days if the settlement agreement includes a cooling-off period. If the cooling-off period is not included in the settlement agreement, then by law you have three weeks (21 days) to revoke the settlement agreement.

Under strict conditions, you are entitled to Social Security benefits from the UWV if you sign a settlement agreement. If you apply for benefits, the UWV may ask for a copy of the settlement agreement. The settlement agreement must show that you are not culpably unemployed. In other words, the initiative for the dismissal must lie with the employer. It is also for this reason that the settlement agreement never includes the actual reason for the dismissal. It is often chosen to include a neutral ground for dismissal "difference of opinion about performance." Such a ground ensures that the settlement agreement is "WW or UWV proof."

This depends on the situation and the negotiating position of both parties. Who takes the initiative and what is the actual reason? These circumstances play an important role for the outcome. Agreements are usually made about severance pay, any transition compensation (or higher severance pay) and any remaining vacation days. The length of the notice period, work release or outplacement arrangements may also be negotiated. It is important to be well advised and negotiated by an employment lawyer in this area, so that you will not face any surprises and can reach the best possible settlement.

As an employee, you have the right to request a settlement agreement yourself from your employer. The employer is not obliged to cooperate. Therefore, you can enter discussions with your employer to negotiate the termination of your employment. However, it is wise to prepare well for a possible conversation, for example by engaging an employment lawyer. After all, it is important to record the agreements carefully in the settlement agreement. Moreover, with adequate consultation and negotiation, you can ensure the most favorable termination situation for both parties.