It's something that no one can foresee: At some point during your employment in the Netherlands, you may become ill. This is never pleasant and can cause all kinds of logistical worries. Fortunately, you are well protected under Dutch legislation. For instance, you are safe from dismissal for up to two years and are entitled to at least 70 percent of your salary during your illness.
However, it may be that you'd prefer to leave your job. This is often the case if you have become ill due to work (such as burnout). Simply resigning is usually not a good solution, as you would lose your income and cannot rely on unemployment benefits.
A better solution can be entering into a settlement agreement (vaststellingsovereenkomst). But what exactly is a settlement agreement and what should you consider, especially when you are ill? This article discusses the key aspects of entering into a settlement agreement during illness and how legal experts can offer valuable assistance, especially for expats who may face additional challenges.
What is a settlement agreement?
A settlement agreement is an agreement between an employer and an employee to terminate the employment contract by mutual consent. It is typically a negotiated arrangement where both parties agree on the terms of termination, such as severance pay, exemption from work, the last working day and other conditions related to the termination of the employment contract.
Unlike regular dismissal, a settlement agreement allows both parties to determine the terms of departure themselves, rather than relying on a judgment from a court or the Employee Insurance Agency (UWV).
Why enter into a settlement agreement during illness?
There are several reasons why an employee may consider entering into a settlement agreement during illness:
- Clarity and control: A settlement agreement allows both the employee and employer to reach a mutually agreeable solution, with both parties agreeing on terms such as severance pay, continued payment of benefits and references.
- Avoiding a dismissal procedure: When an employee has been ill for an extended period, the employer may consider starting a dismissal procedure. A settlement agreement, however, provides a quicker and less contentious way to terminate the employment contract, avoiding the legal complications of formal dismissal.
- Financial security: In some cases, entering into a settlement agreement can be more financially advantageous for the employee, particularly when negotiating a good severance package and a period of work exemption with continued salary payments.
- Protection from negative consequences: Agreeing to a settlement agreement can generally prevent the obligation for reintegration.
Why you might not want to enter into a settlement agreement
Although entering into a settlement agreement during illness can have advantages, it's important to also consider the potential drawbacks.
If, as an employee, you expect to be ill for a long period and do not anticipate being able to return to work with another employer due to your illness, entering into a settlement agreement is not advisable. Employees who leave due to illness do not have the right to unemployment benefits or sickness benefits. If you cannot work with another employer, you may be left without income.
Generally, it is only wise to leave your current employer if you expect that, in the near future, you will have recovered enough to find and accept work elsewhere.
How a legal expert can help
Dutch employment law is complex, especially when illness is involved. Fortunately, there are specialist legal firms out there with years of experience in Dutch employment law, who can help guide you through the process of entering into settlement agreements and ensuring your rights are well protected.
For expats working in the Netherlands, the legal landscape can be even more challenging. Understanding Dutch employment law, particularly regarding illness and settlement agreements, can be difficult if you're not familiar with the language or legal system. This is where having an independent and trustworthy legal advisor makes a difference.
As well as providing clear and practical advice on how you can enter into a settlement agreement, they can also assist with negotiating the terms of the agreement, ensuring you understand your rights and securing a fair financial arrangement.
Finding a legal expert
When looking for a legal expert, you want to make sure that they offer a comprehensive service. These are some of the services that the best firms will provide:
- Free initial advice: You should be able to have a free first consultation via email or phone. This provides the opportunity to discuss the situation and receive tailored advice without any initial cost.
- Negotiating terms: The legal team should assist employees in negotiating the terms of the settlement agreement to ensure they receive the best possible outcome.
- Protection of rights: You need to be able to trust that your rights will be protected throughout the entire process. This is especially important for expats who may not be familiar with Dutch legal procedures.
- Negotiating the settlement agreement: A good legal expert will help advocate for and negotiate a favourable severance package for you, making sure that all terms are clear and fair and no important details are overlooked.
- Ongoing support: From the initial consultation to the final agreement, your legal advisor should offer continuous support to ensure the process is as smooth and stress-free as possible.
There's no need to worry on your own
When you're already sick, worrying about whether or not you can leave your job is an extra burden you shouldn't have to take on by yourself. Contact a legal advisor today to get the help and support you need to know that you are making the right decision about your future.