Settlement Agreement After 2 Years of Illness: What Are Your Rights?

Settlement agreement after 2 years of illness: your rights

After two years of illness, your legal position as an employee changes considerably. Your employer may in principle apply for your dismissal at that point, but sometimes a settlement agreement is offered instead. It is important that you understand what this means for you before you sign anything.

What changes after two years of illness?

During the first two years of your illness, a dismissal protection applies. Your employer may not simply dismiss you during this period. Once those two years have passed, this protection lapses and a new situation arises.

At that point, your employer has two options: initiate a dismissal procedure through the UWV, or offer you a settlement agreement. Employers frequently choose the second option, as it can be quicker and less costly than a formal procedure.

Why does an employer offer a settlement agreement?

A settlement agreement is a written arrangement whereby you and your employer part ways by mutual consent. This has advantages for the employer: no involvement of the UWV or the courts is required, and the process often runs more smoothly.

Bear in mind, however: this does not automatically mean that signing is in your interest. The terms of such an agreement are negotiable, and that is precisely where your strength lies.

What should you look out for when receiving an offer after two years of illness?

A settlement agreement after two years of illness contains several elements that you should check carefully. Here are the most important points to consider:

• Transitievergoeding: You are in principle entitled to the statutory transition payment. Check whether the amount offered corresponds to your years of service and salary.
• WW-uitkering: Ensure that the agreement is drafted in such a way that you remain eligible for unemployment benefit (WW). There must be no suggestion of fault on your part.
• Einddatum: The end date of the employment contract must logically align with the notice period. An end date that is too early may affect your entitlement to unemployment benefit (WW).
• Any IVA or WGA benefit: Are you already in the process of applying for a WIA benefit? If so, a settlement agreement may affect that benefit. Have this looked into before you sign.
• Geheimhoudingsclausule: Some agreements contain far-reaching confidentiality clauses. Assess whether these are reasonable.
• Bedenktermijn: You have a statutory right to a fourteen-day cooling-off period after signing. Make sure this is explicitly stated in the agreement.

What if you are partially incapacitated for work?

Not everyone is fully incapacitated for work after two years. Sometimes you have partially recovered and are already working in an adapted capacity or in a different role. In that case, the situation is especially complex.

Your employer also has a duty to redeploy you. If suitable work is available, they must offer it to you first before they can part ways with you. If a settlement agreement is offered despite there being redeployment opportunities, it is wise to raise this point.

Are you allowed to refuse to sign?

Yes, absolutely. You are never obliged to sign a settlement agreement. If you do not sign, your employer must apply to the UWV for a dismissal permit. The UWV will then assess whether the dismissal is justified.

Refusing can sometimes be the sensible course of action, for example if the terms are not right or if you have doubts about the legal validity of the dismissal. In that case, make sure you obtain proper advice about your position.

Practical steps if you receive an offer

Have you been offered a settlement agreement after two years of illness? If so, take the following steps:

• Never sign immediately; always take the time to have the document assessed.
• Ask an employment law specialist to read through the agreement.
• Check whether your WIA process is already under way and what the consequences are for your benefit.
• Verify that the transition payment has been calculated correctly.
• Negotiate the terms if they are incorrect or unreasonable.
• Confirm that the fourteen-day cooling-off period is included in the agreement.

Would you like to know more about the specific protections you have as an employee on sick leave when concluding such an agreement? If so, please also read our comprehensive page Settlement agreement during illness: everything you need to know.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we understand how vulnerable your position can be after two years of illness. You have already been through a difficult period and the last thing you need is to sign an agreement that puts you at a disadvantage.

We examine your situation in concrete terms: is the payment correct, are your unemployment benefit (WW) entitlements protected and are the arrangements fair? Where necessary, we negotiate on your behalf with your employer.

Feel free to get in touch with us. We are happy to think through your next step with you, without any pressure and with your interests in mind.

Frequently asked questions

Am I entitled to a transition payment under a settlement agreement after 2 years of illness?

In most cases you are entitled to a transition payment, including under a settlement agreement. The exact amount depends on your salary and number of years of service. Always have this checked before you sign.

Will I lose my unemployment benefit if I sign a settlement agreement?

Not automatically. The agreement must be drafted correctly. There must be no question of culpable conduct on your part, and the end date must align with the applicable notice period. An employment law specialist can review this for you.

What if my employer puts pressure on me to sign quickly?

You are never obliged to sign immediately. You are entitled to time to consider, and after signing you have a statutory fourteen days to reverse your decision. Do not let yourself be rushed and seek advice in good time.

Frequently asked questions

Am I entitled to transitional allowance after 2 years of illness?

Yes. In the event of dismissal following long-term incapacity for work, you are entitled to the statutory transition payment. Your employer can claim compensation for this payment through UWV.

May my employer dismiss me via a settlement agreement after 2 years of illness?

After two years of illness the prohibition on dismissal lapses and your employer may propose dismissal, often by means of a settlement agreement. Do not sign without having the terms reviewed.

Will I retain a benefit entitlement if I sign a settlement agreement after 2 years of illness?

That depends on your situation and the wording used. If you are incapacitated for work, your WIA assessment is also a factor. It is therefore advisable to seek advice before you sign.

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.