Dismissal protection during illness and settlement agreements: what protects you as an employee?

The prohibition on dismissal during illness and your settlement agreement

Are you unwell and being offered a settlement agreement nonetheless? In principle, the prohibition on dismissal during illness protects you against forced dismissal, but the rules work slightly differently in the context of a settlement agreement. It is important to understand exactly what that protection entails and when you might (unintentionally) lose it.

What is the prohibition on dismissal during illness?

If you are ill, your employer may not in principle terminate your employment contract. This prohibition on dismissal applies during the first two years of your incapacity for work. It is one of the strongest protections that employment law affords you as an employee.

Het verbod geldt voor opzegging by the employer. This means that your employer cannot obtain permission from the UWV to terminate the employment contract unilaterally while you are ill. If the employer does so regardless, the termination can be annulled.

When does the prohibition on dismissal not apply?

There are exceptions. The prohibition on dismissal does not apply, for example, if:

• je zelf ontslag neemt;
• the dismissal is a summary dismissal on grounds of an urgent reason;
• the employment contract is dissolved by the court (subdistrict court);
• the illness only arose 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 from termination by notice

A settlement agreement (VSO) is a written arrangement in which you and your employer jointly decide to terminate the employment contract. Because it is based on mutual consent, a VSO technically bypasses the prohibition on dismissal.

That may sound alarming, but it is not necessarily unfair. A VSO can work in your favour, particularly if the working relationship has broken down irreparably or if a good package is on offer. The danger lies in pressure or incorrect information: if you sign without properly understanding your rights, you may forfeit protection that you would otherwise have had.

Is your employer permitted to offer a VSO 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 agree, you remain employed and the prohibition on dismissal continues to apply.

Do you feel under pressure? That is an important signal to seek legal advice before you sign anything. You can also read more about your rights during illness and a VSO on our page Settlement agreement during illness: everything you need to know.

What do you lose if you sign during illness?

When you sign a settlement agreement, you in principle waive the right to the protection of the prohibition on dismissal. This has consequences:

• Loondoorbetaling: upon dismissal by means of a VSO, your employer's obligation to continue paying your salary ceases;
• WW-uitkering: you may be entitled to unemployment benefit (WW), but this is not automatic with a VSO during illness — the UWV will assess whether you have become unemployed through your own fault;
• Ziektewetuitkering: if you leave employment while ill, you may be able to claim a Sickness Benefit payment through the UWV, but this too depends on your individual situation;
• Re-integratierechten: your employer is no longer obliged to supervise your reintegration.

These consequences are far-reaching. Particularly if you are still in the middle of a period of illness, it is wise to have everything carefully assessed before you make a decision.

Practical tips if you are ill and are offered a settlement agreement

Not sure what to do? Here are a few concrete steps that can help you:

• Teken nooit direct: you are always entitled to a period for reflection. The law includes a statutory reflection period of three days after you have signed, but it is better to seek advice before signing.
• Have the settlement agreement reviewed by a legal professional: an employment lawyer can assess whether the terms are reasonable and whether you are missing anything.
• 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.
• Vraag naar de reden: does your employer want to offer the settlement agreement because of a reorganisation, underperformance, or something else? The reason can be decisive for your position.
• Informeer bij het UWV: ask what the consequences are for any potential unemployment benefit (WW) or Sickness Benefit entitlement in your specific situation.

The dismissal protection as a negotiating tool

Many employees are unaware that the prohibition on dismissal 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 room to negotiate better terms, such as a higher payment, a longer notice period, or a better outplacement arrangement.

In practice, in Eindhoven and the surrounding region, we regularly see employees signing too quickly, without realising that more was achievable. A brief review by an employment lawyer can make all the difference.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven, we help employees who are faced with a settlement agreement during illness. We know the local labour market, understand the pressure you may be feeling, and quickly give you clarity about your position — without legal jargon.

Are you unsure whether your settlement agreement is fair? Or do you simply want to know where you stand? Feel free to contact us with no obligation. We are happy to think things through with you.

Frequently asked questions

Is my employer allowed to dismiss me if I am ill?

No, during the first two years of illness a prohibition on dismissal applies. Your employer cannot unilaterally terminate the employment contract during that period. Offering a settlement agreement is permitted, but you are not obliged to agree to it.

Will I lose my right to unemployment benefit (WW) if I sign a settlement agreement during illness?

That depends on the circumstances. The UWV assesses whether you have become dismissible through your own fault. Make sure you are informed in advance about the consequences for your benefit, so that you are not caught off guard.

Do I have to sign the settlement agreement immediately?

No, you are never obliged to sign immediately. Take the time to obtain legal advice. After signing, the law provides a three-day cooling-off period, but it is better to seek proper advice before you sign.

Frequently asked questions

Does the prohibition on dismissal during illness also apply to a settlement agreement?

The statutory prohibition on dismissal during illness does not apply when you personally conclude a settlement agreement by mutual consent. That is precisely why it is important to have the consequences assessed in advance.

Am I allowed to sign a settlement agreement while I am ill?

You are permitted to do so, but it carries risks. Signing during illness may jeopardise your entitlement to a Sickness Benefit or WIA benefit. Have your situation assessed first by an employment lawyer.

What happens to my benefit if I sign a settlement agreement (VSO) while I am ill?

UWV may refuse a benefit if you leave employment while ill by means of a settlement agreement. The wording and timing are crucial, so have the agreement checked before signing.

We are happy to think along with you. For advice tailored to your situation, we would be glad to talk. No rights can be derived from the content of this page and it may contain inaccuracies.