Drawing VSO during illness: what are the risks and what should you pay attention to?

What are the risks of signing a settlement agreement while on sick leave?

Signing a settlement agreement while on sick leave carries risks for your unemployment benefit (WW) and other benefits. Below you can read what to look out for before you agree.

Signing a settlement agreement (VSO) whilst you are ill is, legally speaking, a sensitive situation. You are in principle entitled to refuse such an agreement, but sometimes agreeing seems attractive or the pressure from your employer feels intense. In this article you can read about the risks and what you really need to watch out for before you put your signature to it.

What changes if you are ill when signing a VSO?

Normally, there's a prohibition on dismissal during illness. This means your employer can't just end the employment contract while you are unfit for work. However, a mutual termination agreement (VSO) is a mutual agreement: you yourself consent to the end of the employment. This effectively bypasses the prohibition on dismissal, as you voluntarily give permission.

This may sound neutral, but it has significant consequences. As soon as you agree to the termination of your employment, your employer's obligation to continue paying your wages effectively ceases. If you are still ill at the point when the employment contract ends, you may find yourself excluded from sickness benefits or reintegration rights.

The risk of losing your unemployment benefit

One of the greatest dangers of signing a VSO during illness is the risk of losing your entitlement to unemployment benefit (WW). The UWV assesses whether you have become 'culpably unemployed'. If you agreed to your own dismissal whilst you were ill and there was no urgent reason to do so, the UWV may conclude that you cooperated unnecessarily in your own dismissal.

In addition, the following applies: if you are ill at the moment of signing, you may be entitled to a Sickness Benefit (Ziektewetuitkering) through the UWV (the so-called 'safety net scheme'). However, that entitlement too can come under pressure if the circumstances surrounding the termination are not in order.

Practical risks at a glance

• You may lose your right to continued pay during sickness.
• The UWV can reject your unemployment benefit application due to attributable unemployment.
• Your reintegration rights and obligations will lapse.
• An employer is no longer required to assist you in finding other work after termination.
• An overly short reflection period can mean you have insufficient time to consider the consequences.
• Unfavourable agreements on the end date can harm your entitlement to benefits.

What should you pay attention to regarding the content of the preparatory year of secondary education (VSO)?

Not every VSO is the same. The details in the text will determine whether you benefit or suffer from it later. In any case, pay attention to the following points:

The end date

Ensure the end date is at least equal to the notional notice period. This is the notice period your employer should normally have observed in the event of a regular dismissal. If the end date is too early, the UWV may impose a WW sanction.

The grounds for dismissal

The reason for termination must be clear and preferably not lie with you. If the VSO contains anything that implicitly acknowledges you did something wrong, this will have consequences for your unemployment benefit application. Therefore, read the text carefully.

The cooling-off period

You are legally entitled to a fourteen-day cooling-off period after signing a VSO. Within that period, you can terminate the agreement in writing without stating a reason. Take advantage of this period if you are in doubt, and use that time to seek legal advice.

The transition payment

Are you entitled to a transition payment? Check if the amount is correct and if there are any clauses that restrict or exclude this entitlement. In the case of illness, the same calculation rules apply as in other dismissal situations.

Can your employer exert pressure on you during illness?

Your employer can offer you a settlement agreement, even if you are ill. What is not allowed is to exert undue pressure or mislead you about the content or consequences. If you feel pressured, that is a signal to seek legal advice immediately before signing anything. Legally, it is harder to withdraw a signature than to never give one in the first place.

Would you like to know more about the protection you have as a sick employee in a settlement agreement? Then also read Settlement agreement during illness: everything you need to know.

Practical tips if you are offered a Voluntary Severance Package while on sick leave

• Never draw directly; always take time to consider.
• Have the VSO checked by an employment lawyer before making any decisions.
• Ask your GP or occupational health doctor if your health situation permits you to sign legal documents.
• Check if the end date and the notice period match.
• Ask in writing what is happening with your reintegration file.
• Check with the UWV beforehand what the implications are for your benefit rights.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we understand that illness is already stressful enough. A VSO that arrives at a moment when you are feeling vulnerable makes the situation even more complicated. We help you quickly and concretely understand what is on the table and what the risks are for your specific situation.

We think from the perspective of Eindhoven and the Brabant region, understand local practice and simply speak Dutch. Feel free to contact us if you have received a VSO during your illness. Together, we will look at what your best next step is.

Frequently asked questions

Can I refuse a VSO if I am ill?

Yes, you are never obliged to sign a settlement agreement. Refusing to do so will not have any direct consequences for your employment, although the employer may then take other steps.

Will I lose my unemployment benefit (WW) if I sign a mutual agreement (VSO) while sick?

That depends on the circumstances and the content of the Voluntary Severance Agreement. The UWV assesses whether you became unemployed through your own fault. Therefore, always have the agreement checked.

How long do I have a cooling-off period after signing a Voluntary Settlement Agreement (VSO)?

You have a statutory cooling-off period of fourteen days. Within this period, you can cancel the VSO in writing without providing a reason.

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.