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Settlement agreement, transition allowance, dismissal

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Settlement agreement in case of burnout

Burnout may be work-related, but signing while on sick leave remains legally risky. Assess recovery, reintegration and the consequences for benefits before deciding.

Burnout provides dismissal protection

Under Dutch employment law, burnout is treated as illness. During the first two years of illness, a statutory prohibition on dismissal usually applies and the employer must continue paying wages and facilitate reintegration.

An employer may nevertheless propose a settlement agreement. Agreement is voluntary, but may mean giving up salary protection and potential benefit entitlements.

1establish your capacity for work and recovery plan with the occupational physician
2assess salary, benefits, the termination date and alternatives before discussing a settlement agreement
Carefully discussing a settlement agreement and burnout

Can termination ever be a sensible solution?

If the working environment impedes recovery, distance may sometimes help. This does not automatically make dismissal safe or necessary. First investigate adjustments, mediation, suitable work and the occupational physician’s opinion.

Termination can only be assessed responsibly once it is clear whether you will be ill, partially recovered or fully recovered on the termination date.

Which risks should you assess first?

If you are still unfit for work when employment ends, you will generally not meet the availability requirement for unemployment benefit (WW). Entitlement to a Dutch sickness benefit (Ziektewet) is not automatic either if you voluntarily agree to dismissal during the wage-payment period.

A declaration of recovery must not exist only on paper. The agreement, medical reality and reintegration records must be consistent.

Recovery and negotiations require a tailored approach

Do not negotiate compensation alone. Also check the termination date, continued payment of wages, release from duties, reintegration, accrued holiday, legal costs, pension, restrictive covenants and the statutory reflection period.

Do not include unnecessary medical details. The reason for termination must be factually accurate and must not prejudice your benefit position through incorrect wording.

More about illness and your rights

Return to the main page about illness or read more about two years of incapacity for work and unemployment benefit (WW).

Have your situation reviewed FREE OF CHARGE before signing

Before signing, have the settlement agreement reviewed together with your employment contract, the occupational physician’s advice and the reintegration records.

Our dismissal specialists are 100% on your side

Experienced legal help with dismissal, negotiations and settlement agreements under Dutch law.

mr. Nathalie Geradts, dismissal specialist

mr. Nathalie Geradts

“With my extensive experience, I know what matters most to employees.”

mr. Edwin van Jaarsveld, dismissal specialist

mr. Edwin van Jaarsveld

“My aim is to achieve the best possible result for my client.”

mr. Monica Wildervank, dismissal specialist

mr. Monica Wildervank

“Firm but fair negotiations are my motto.”

mr. Els Bakker, dismissal specialist

mr. Els Bakker

“My attention to the case and a thorough approach often produce the best result.”

mr. Maarten Walst, dismissal specialist

mr. Maarten Walst

“My extensive litigation experience can be of great value to the client.”

Meet the full team

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