If you sign a settlement agreement whilst you are ill, the UWV plays a far greater role than most people expect. The UWV assesses whether you are entitled to benefits after your employment ends, and illness makes that assessment considerably more complicated. It is therefore wise to understand how the UWV views the matter before you put pen to paper.
What does the UWV do in the case of a settlement agreement?
When your employment contract ends by means of a settlement agreement, the UWV treats this as a dismissal by mutual consent. That may sound straightforward, but the UWV always assesses whether you agreed to leave of your own accord. If so, you may miss out on unemployment benefit (WW) because you are considered to have become unemployed through your own fault.
There is, however, an exception: if your employer had an urgent reason to dismiss you and you could not have prevented that reason, or if there were reasonable grounds for dismissal, the UWV may decide that no culpable unemployment has occurred. In practice, this is assessed on a case-by-case basis.
Illness makes the situation particularly sensitive
Once illness is involved, an additional layer comes into play. The UWV looks not only at unemployment benefit (WW) but also at any entitlement to a Sickness Benefit (Ziektewet). If you are still ill at the point your employment ends, you may, under certain circumstances, be able to claim under the Sickness Act — also known as the ‘safety net provision’.
However, be aware: that entitlement does not automatically lapse if you sign a settlement agreement. Whether you are actually entitled to it depends on your circumstances at the time. If, for example, you are ill without a permanent employer, or your contract ends during a period of illness, the Sickness Act may offer a solution. The UWV assesses this when you submit your claim.
When does the UWV inform you?
The UWV plays no active role during negotiations over a settlement agreement. You and your employer conclude that agreement between yourselves. It is only after your employment has ended and you apply for a benefit that the UWV becomes involved. At that point, the UWV examines the circumstances surrounding your departure.
This makes it all the more important to have a clear picture of where you stand before you sign. What you agree now will have a direct bearing on what the UWV will or will not pay out later.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekWhat should you look out for in the settlement agreement?
The wording of the agreement determines how the UWV assesses your situation. A number of points deserve particular attention:
- The reason for dismissal: Ensure it is clear that the initiative lay with the employer and that there were reasonable grounds for the dismissal. This protects your entitlement to unemployment benefit.
- The end date: Check that the end date corresponds to the notice period to which you are entitled. An end date that is too early can have an adverse effect on your benefit.
- The stated reason for termination: Phrase this carefully. If the wording suggests that you yourself decided to leave, the UWV may treat this as culpable unemployment.
- Indemnity and full and final settlement: Pay close attention to what you are and are not waiving. Certain clauses may affect entitlements to benefits or other compensation.
- Cooling-off period: As an employee, you have a statutory right to a fourteen-day cooling-off period after signing. Use that time to have everything thoroughly reviewed.
What can you do yourself?
It is advisable not to rely on what your employer or HR department tells you about your rights. They act in their own interests. Here is what you can do:
- Ask an independent employment law specialist to review the agreement before you sign.
- Enquire with the UWV (or have your adviser do so) whether your situation entitles you to Sickness Benefit or unemployment benefit.
- Check that the grounds for dismissal stated in the agreement reflect the actual situation.
- Do not be rushed. An employer cannot force you to sign quickly.
For a complete overview of everything involved when you are ill and are offered a settlement agreement, read more 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 illness. We know local practice, understand how the UWV reasons, and work with you to determine the best course of action. No complicated legal jargon — just clear explanations and practical support.
Would you like to know where you stand before making a decision? Get in touch with us without any obligation. We would be happy to explore the options with you.
Frequently asked questions
Will I lose my entitlement to unemployment benefit if I sign a settlement agreement whilst ill?
Not necessarily. If the grounds for dismissal are correctly worded in the agreement and the initiative lay with the employer, the UWV will generally not treat this as culpable unemployment. Do always have the wording checked before you sign.
Can I still apply for Sickness Benefit after signing a settlement agreement?
In certain situations, yes. If you are still unfit for work when your employment ends and you fall within the safety net provision of the Sickness Act, you can submit a claim to the UWV. Whether you are entitled to this depends on your specific circumstances.
Does the UWV play a role during negotiations over the settlement agreement?
No, the UWV is not involved in the negotiations. It is only after your employment ends, when you apply for a benefit, that the UWV assesses the situation. That is precisely why it is important for the agreement to be properly drafted in advance.
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.
