Your employer wants you to sign a settlement agreement while you are on sick leave. This can have serious financial consequences — for your unemployment benefits, Sickness Benefits Act and WIA disability benefits.
A settlement agreement (vaststellingsovereenkomst, art. 7:670b Dutch Civil Code) terminates your employment by mutual consent. When you are healthy, the process is relatively straightforward. But during sick leave, additional layers come into play: continued salary payment (art. 7:629), the dismissal prohibition during illness, and whether you retain your right to benefits after your employment ends.
UWV assesses after the fact whether you became culpably unemployed. During illness, this risk is real: you are not available for the labour market, so unemployment benefits (WW) are not guaranteed. Sickness benefits after termination are not automatic either. And your WIA disability trajectory can be disrupted if salary payments stop prematurely.
The difference between a properly assessed settlement agreement and one signed in haste can be tens of thousands of euros in lost benefits. Never sign without understanding the full financial impact.
UWV may decide you became culpably unemployed. The reasoning: you cooperated in your own dismissal while not being available for the labour market due to illness. Result: no WW. To secure WW, the initiative must demonstrably come from the employer, there must be no culpable unemployment, and the notice period must be correctly reflected.
Normally, you fall under the Sickness Benefits Act when leaving employment while ill. But with a settlement agreement, UWV may decide you deliberately cooperated in termination during illness. UWV then tests for disadvantageous conduct: did your own actions cause you to lose a benefit you would otherwise have received?
If you are approaching 104 weeks of illness, you are in a WIA trajectory. A settlement agreement ends salary payments prematurely. Your Gatekeeper file may become incomplete and the timing of your WIA application is affected. Especially around weeks 88-104, a settlement agreement carries extra risk.
Many initial proposals contain compensation around the statutory transition payment (1/3 monthly salary per year of service). But if the settlement agreement causes you to miss months of benefits, the total loss is many times greater than the offered amount. Always calculate the full net loss scenario.
After signing a settlement agreement, you have 14 days to withdraw (art. 7:670b paragraph 2 Dutch Civil Code). Within that period, you can dissolve the agreement in writing, without giving reasons. If your employer did not inform you of this right in writing, the period extends to 21 days.
The reflection period is a last resort. It is always better to have the agreement assessed before signing than to have to withdraw afterwards. After withdrawal, the working relationship is often damaged and you are back to square one — with an employer who now knows you want to leave.
Withdrawal must be unambiguous and provably made within the period. Send a registered letter or email with read receipt. Keep proof of dispatch.
Initiative with employer. UWV weighs heavily who initiated the termination. The agreement must explicitly state that the initiative came from the employer. This is crucial for your unemployment benefit rights.
Neutral termination reason. Avoid phrases like "at own request" or "due to underperformance." A neutral reason (e.g. business reasons or difference of opinion) is safer for your benefits.
Correct fictitious notice period. The end date must be far enough in the future to respect the notice period. If this is wrong, UWV may delay the start of your unemployment benefits.
Transition payment explicit. A settlement agreement does not automatically create a right to transition payment. This must be explicitly negotiated and recorded. Your negotiating position is strong: the dismissal prohibition during sick leave protects you.
Understand final discharge. With a final discharge clause, you waive future claims. Have the scope precisely assessed: does it cover pension damage? Your illness history? Outstanding holiday days?
Calculate the alternative. In some cases, waiting until after 104 weeks is strategically better. You retain salary payments, build a complete WIA file, and are entitled to transition payment after sick leave.
Legally, yes. But the risks are significant. UWV assesses after the fact and may refuse your unemployment and sickness benefits. Always have the full benefits impact assessed first.
Pressure to sign quickly is a signal to slow down. You are not obligated to anything. Especially during illness, when you are extra vulnerable. Do not sign under pressure — this can legally qualify as abuse of circumstances.
During sick leave, you have a strong negotiating position due to the dismissal prohibition. Your employer cannot dismiss you, so they must pay to part ways. The compensation should not only cover the transition payment but also compensate for the risk of lost benefits.
Check if you are still within the 14-day reflection period (21 days if the reflection period was not mentioned in the agreement). If so, withdraw in writing and provably. If not, have it assessed whether there are grounds for annulment, such as error or abuse of circumstances.
Received a settlement agreement while on sick leave? We assess your file and guide the next steps.
Discuss your settlement agreement