Are you ill and being offered a settlement agreement? In principle, the dismissal protection during illness protects you against forced redundancy, but with a settlement agreement the rules work slightly differently. It is important to understand exactly what that protection entails and when you might inadvertently lose it.
What is dismissal protection during illness?
When you are ill, your employer is not permitted to terminate your employment contract. This dismissal protection applies during the first two years of your incapacity for work. It is one of the strongest protections that employment law offers you as an employee.
The prohibition applies to termination by the employer. This means that your employer cannot obtain permission from the UWV to end the employment contract unilaterally whilst you are ill. Should they do so regardless, the termination is voidable.
When does dismissal protection not apply?
There are exceptions. Dismissal protection does not apply, for example, if:
- you resign yourself;
- there is summary dismissal due to urgent cause;
- the employment contract is dissolved by the court (cantonal court);
- the illness arose only after a dismissal procedure had already been initiated.
These are situations that regularly give rise to disputes in practice. Always seek advice about the specific circumstances of your situation.
Settlement agreement: a different route to termination
A settlement agreement (VSO) is a written arrangement whereby you and your employer jointly agree to end the employment contract. Because it is a matter of mutual consent, a settlement agreement technically circumvents the dismissal protection.
That may sound alarming, but it is not necessarily unfair. A settlement agreement can work in your favour, particularly if the working relationship has irreparably broken down or if a good package is on offer. The danger lies in pressure or incorrect information: if you sign without fully understanding your rights, you may forfeit protections you would otherwise have had.
Is your employer permitted to offer a settlement agreement during illness?
Yes, they are. Offering a settlement agreement during illness is not prohibited. However, you are never obliged to sign. As long as you do not consent, you remain employed and dismissal protection continues to apply.
Do you feel under pressure? That is an important signal to seek legal advice before signing anything. You can also read more about your rights during illness and a settlement agreement on our page Settlement agreement during illness: everything you need to know.
What do you lose if you sign during illness?
By signing a settlement agreement, you in principle relinquish the right to dismissal protection. This has consequences:
- Continued pay: upon termination via a settlement agreement, your employer’s obligation to continue paying your salary ceases;
- Unemployment benefit (WW) you may be entitled to unemployment benefit, but this is not automatic with a settlement agreement during illness — the UWV will assess whether you became unemployed through your own fault;
- Sickness benefit (Ziektewet): if you leave employment whilst ill, you may be able to claim sickness benefit through the UWV, but this too depends on your situation;
- Reintegration rights: your employer is no longer obliged to support your reintegration into the workplace.
These consequences are significant. Particularly if you are still in the middle of a period of illness, it is advisable to have the full picture worked out carefully before making a decision.
Arrange a no-obligation chat and discover how we can help you.
Plan a conversationPractical tips if you are ill and offered a settlement agreement
Unsure what to do? Here are a few concrete steps that can help:
- Never sign immediately: you always need time to reflect. The law provides a statutory cooling-off period of three days after signing, but it is better to seek advice before Signing.
- Have the settlement agreement reviewed by a legal professional: an employment law specialist can assess whether the terms are reasonable and whether anything is missing.
- Check the transition payment: even with a settlement agreement, you are normally entitled to a transition payment. If it is not included, that is a red flag.
- Ask for the reason: is your employer offering the settlement agreement because of a reorganisation, poor performance, or something else? The reason can be decisive for your position.
- Enquire with the UWV: find out what the consequences are for any potential unemployment or sickness benefit in your specific case.
Dismissal protection as a negotiating tool
Many employees do not realise that dismissal protection during illness is also a powerful negotiating tool. Because your employer cannot simply dismiss you, they are in a weaker position when negotiating a settlement agreement. This means there is often scope to secure better terms, such as a higher pay-out, a longer notice period, or a better outplacement arrangement.
In practice, in Eindhoven and the surrounding region, we regularly see employees sign too hastily, without realising there was more to be gained. A quick check with an employment law specialist can make all the difference.
Why Labour Lawyer Eindhoven
At Arbeidsjurist Eindhoven, we assist employees who are confronted with a settlement agreement during illness. We know the local labour market, understand the pressure you may be feeling, and give you swift clarity on your position — without legal jargon.
Are you unsure whether your settlement agreement is fair? Or do you simply want to know where you stand? Please feel free to contact us without obligation. We are happy to think things through with you.
Frequently asked questions
Can my employer dismiss me when I am ill?
No, during the first two years of illness a dismissal prohibition applies. Your employer cannot unilaterally terminate the employment contract during that period. Offering a settlement agreement is permissible, but you are not obliged to agree to it.
Do I lose my right to unemployment benefit if I sign a settlement agreement during illness?
That depends on the circumstances. The UWV will assess whether you became unemployed through your own fault. Make sure you are informed in advance about the consequences for your benefit entitlement, so that you are not caught off guard.
Do I need to sign the settlement agreement immediately?
No, you are never obliged to sign immediately. Take the time to seek legal advice. After signing, a statutory cooling-off period of three days applies by law, but it is better to obtain proper advice <em>before</em> signing.
We're happy to help you brainstorm ideas. For advice tailored to your specific situation, we'd be happy to sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.
