You have received a settlement agreement and do not want to sign straight away. Your first response determines what follows. With this sample letter, you stay in control.
Subject: Response to settlement agreement proposal
Dear [name],
I confirm receipt of your settlement agreement proposal dated [date].
At this point, I am not taking a decision on signing.
Given my current situation, I first want to obtain legal advice on the consequences,
including the impact on benefits and my further legal position.
I expressly reserve the right to respond with a substantive reaction or counter-proposal.
I request that all communication on this matter be conducted in writing.
After assessment, I will revert to you within a reasonable period.
Kind regards,
[employee name]"I confirm receipt" — you show that you have received the settlement agreement and that you are responding. Silence can be held against you as disinterest or implicit rejection, causing the employer to choose a different route before you are ready.
"At this point, I am not taking a decision" — you are not agreeing, but you are also not refusing. This is crucial: a too-quick refusal can reduce negotiation room. A too-accommodating response can be interpreted as consent.
"First obtain legal advice" — you announce that you will have the settlement agreement professionally assessed. That is your right and it forces the employer to take you seriously. Employers who know a lawyer is reviewing the agreement are generally more willing to negotiate.
"I reserve the right to a counter-proposal" — you keep all options open. The employer now knows a response is coming, but not what it will contain. This gives you time to properly determine your position.
"All communication in writing" — this protects you against verbal statements that are later used against you. Everything on paper is provable. Everything said verbally is not.
Avoid phrases like "I would also like to find a solution" or "I am open to leaving". UWV and courts can interpret this as your own initiative to terminate — with consequences for your unemployment or Sickness Benefits rights.
Employers often set a deadline: "sign within a week or the offer expires." You are not obligated to accept this. A settlement agreement is an agreement, not an ultimatum. Take the time you need.
An informal conversation feels less loaded, but is legally dangerous. Statements you make in a conversation can later be cited in the file. Keep it in writing or immediately confirm by email after a conversation what was discussed.
Respond within a few working days with this letter. Sitting still too long can weaken your negotiating position and signal to the employer that you are not interested. Responding quickly is not the same as signing quickly.
Reflection period after signing: if you do sign, you have 14 days under art. 7:670b paragraph 2 Dutch Civil Code to withdraw the settlement agreement. If the employer did not inform you of this right in writing, the period becomes 21 days. Always withdraw in writing and keep proof.
Reintegration continues: offering a settlement agreement does not release you or your employer from reintegration obligations. As long as the employment continues, you must cooperate with reintegration and the employer must continue paying salary during illness. Do not stop during negotiations.
Benefits risk during illness: a settlement agreement during illness carries the risk of a disadvantageous act. UWV assesses after the fact whether you gave up your right to Sickness Benefits by consenting to your own dismissal. Always have this risk assessed in advance.
WW requirements: for unemployment benefit entitlement, the settlement agreement must state that the initiative lay with the employer and that you are not at fault. The end date must also account for the fictitious notice period. If this is missing, your WW application may be rejected.
Evidence of pressure: if the employer pressures you to sign — with threats, incorrect information or withholding alternatives — save all communication. This may later be relevant in challenging the settlement agreement on grounds of error or abuse of circumstances.
Already signed? If you have already signed and have doubts, immediately check whether the reflection period is still running (14 or 21 days). If it has expired, assess whether there was a defect of will (error, fraud, abuse of circumstances) that could make the settlement agreement voidable.
Many employees underestimate how strong their position is. If you are ill, the dismissal prohibition applies. Your employer cannot simply dismiss you — that is precisely why they are offering a settlement agreement. The agreement is a negotiation, not a one-way street. You may improve the terms, make a counter-proposal and say no.
The employer who pressures you to sign quickly does so because delay works to their disadvantage — not to yours. Use this time to have the settlement agreement assessed: is the end date correct? Is the transition payment correctly calculated? Is the initiative neutrally formulated? What is the effect on your WW/Sickness Benefits/WIA?
Not signing is not standard advice — it depends on your situation. But there are situations where not signing is clearly better: if the compensation is far below the statutory transition payment, if you are still entitled to months of continued salary, if the benefits risk is not covered, or if the employer is using the settlement agreement to shift a wage sanction risk.
We help employees on sick leave with legal assessment and guidance for settlement agreement cases with concrete risks.
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