Your employer presents a settlement agreement. It sounds like a clean exit with compensation. But during illness, signing can cost you sickness benefits, unemployment benefits and WIA rights.
A settlement agreement (vaststellingsovereenkomst) is legally permitted under art. 7:670b Dutch Civil Code. You are not obligated to sign — it is an agreement, not a one-sided decision. But many employees sign under pressure without knowing what they give up.
The problem is the overlap of legal frameworks. During illness, you are entitled to continued salary (art. 7:629), reintegration and potentially WIA after 104 weeks. A settlement agreement breaks this entire trajectory. UWV assesses after the fact whether you committed a disadvantageous act by cooperating in your own dismissal. If yes, you may receive no sickness benefits — and your WIA trajectory is jeopardised.
For UWV, it matters whether you asked for termination or the employer pushed for it. If the initiative came from the employer, this should be stated in the agreement. Many employers deliberately leave this vague.
For unemployment benefits, the fictitious notice period applies. If the end date is too early, your benefits start later and you face weeks without income. The end date must account for the applicable notice period.
Compare not just with the transition payment, but also with what you lose in benefits. A €10,000 offer sounds generous, but may cost €30,000 in lost sickness benefits.
A standard discharge clause can block future claims for back pay, damages or corrections. Have the wording reviewed before signing.
No. A settlement agreement is voluntary. You can ask for time, have it assessed, negotiate the terms, or decline entirely. If you don't sign, your employer must choose a different route — and that route is often less favourable for the employer.
Yes. Under art. 7:670b paragraph 2 Dutch Civil Code, you have 14 days to withdraw after signing, without giving reasons. If your employer did not inform you of this right in writing, the period extends to 21 days. Always withdraw in writing and keep proof.
That depends on your situation. The UWV route after 104 weeks offers more protection: you keep your transition payment and the employer bears the burden of proof. But if the settlement offer is substantially better, it may be the right choice. Always compare both scenarios with calculated figures.
MediRights assesses and guides employees through settlement agreements during sick leave, including benefits risks and negotiation strategy.
Have your agreement assessed