As soon as you are signed off sick, your employer is obliged to continue paying your salary. But what if negotiations over a settlement agreement are taking place at the same time? This raises questions about when that obligation to continue paying salary ends and what that means for your financial position. This article explains how it works legally and what you need to bear in mind.
What does the obligation to continue paying salary entail?
If you are an employee who becomes ill, your employer is in principle required to continue paying your salary for a maximum of two years. During the first year, this is typically 100% of your salary; during the second year, 70%. This is laid down in the Civil Code and forms an important protection for employees who are off sick.
As long as you are off sick and still employed, that obligation therefore simply continues. Your employer cannot simply stop it partway through, even if discussions are under way about terminating the employment.
What changes when a settlement agreement enters the picture?
A settlement agreement (VSO) is a written arrangement between you and your employer to end the employment by mutual consent. Once both parties have signed the agreement and the end date has been reached, your employment ceases to exist. And with it, your employer’s obligation to continue paying your salary also comes to an end.
That sounds straightforward, but it has significant consequences. As long as you are off sick and still employed, you are accruing entitlements. Once you sign and the employment ends, those entitlements to continued salary payments lapse. It is therefore essential that you fully understand what you are giving up at the moment you sign.
What do you receive in the period up to the end date?
An end date is agreed upon in the settlement agreement. Until that date, your employer remains obliged to continue paying your salary, unless you agree otherwise. In some cases, you agree that you are released from work with immediate effect, but that your salary continues until the end date. That arrangement must then be explicitly stated in the VSO.
After the end date, you no longer have any right to continued salary payments from your employer. What income you receive thereafter depends on the arrangements in the VSO and the conditions set by benefit agencies such as the UWV.
Practical points to consider regarding continued salary and a VSO
When assessing or signing a settlement agreement, bear the following points in mind:
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprek- Check the end date: Is it realistic? Do you have sufficient time to properly assess your situation and arrange alternative income if necessary?
- Read what is stated about continued salary payments until the end date: Does the VSO clearly state that your salary will continue to be paid up to and including the final day?
- Pay attention to the redundancy payment: A transition payment or other redundancy payment does not automatically compensate for the salary you miss out on if you sign prematurely.
- Ask what happens after the end date: Are you entitled to a Sickness Benefit through the UWV? This is not always a given and depends on your specific situation.
- Do not leave it too late to seek advice: With a VSO, you always have the right to seek legal advice before signing. Make use of this opportunity.
What if your employer stops continued salary payments before the end date?
In principle, that is not permitted. As long as you are off sick and the end date stated in the VSO has not yet been reached, the obligation to continue paying your salary remains in force. If your employer nevertheless stops paying without good reason, you have legal recourse available to you.
Situations of this kind call for prompt action. It is advisable to contact an employment lawyer immediately in such a case, who can guide you through the process.
The importance of the correct sequence of actions
Many employees are unaware that the order in which you act can be decisive for your rights. If you sign first and only then realise what the consequences are for your continued salary or potential benefits, it is often too late to reverse that. Particularly in cases of illness, the picture is complex, as several sets of rules may overlap.
Further background on your rights in this situation can be found on the overview page Settlement agreement during illness: everything you need to know.
Why Arbeidsjurist Eindhoven
At Arbeidsjurist Eindhoven, we assist employees in the Eindhoven and Brabant region who are faced with a settlement agreement during a period of illness. We work through the specific terms of the VSO with you, consider the consequences for your continued salary payments, and establish what you need in order to make a well-informed decision.
Would you like to know where you stand in your situation? Feel free to get in touch with us. We are happy to think things through with you.
Frequently asked questions
Does sick pay stop as soon as I sign a settlement agreement?
Continued salary payments run until the end date stated in the settlement agreement has been reached. Only after that does your employer’s obligation to pay your salary lapse.
Is my employer obliged to continue paying my salary if we are already negotiating a VSO?
Yes. As long as you are off sick and still employed, the obligation to continue paying your salary remains in force. That obligation does not end simply because negotiations are taking place.
What happens to my income after the end date in the settlement agreement?
After the end date, you no longer have any right to continued salary payments from your employer. Whether you are entitled to a benefit, such as through the Sickness Benefit scheme or unemployment benefit, depends on your personal situation. It is advisable to have this investigated thoroughly in advance.
Is my employer allowed to stop continued salary payments before the agreed end date?
In principle, this is not permitted without a valid reason. If your employer does stop paying while you are still off sick and the end date has not yet been reached, you can take legal action. In such a situation, seek advice as quickly as possible.
We are happy to think along with you. For advice tailored to your situation we would gladly sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.
