Transition payment after 2 years of illness: what are your rights in 2026

Transition payment after 2 years of illness

After two years of illness, your employer is permitted to terminate the employment relationship, but that does not mean you are left empty-handed. In virtually all cases you are entitled to a transition payment, and this applies even if you lose your job due to long-term incapacity for work. In this article you can read exactly what you are entitled to, how the amount is calculated, and what pitfalls you need to be aware of.

Why you are entitled to a payment upon dismissal due to illness

Being continuously ill for two years is a significant situation. After that period, your employer's obligation to continue paying your salary comes to an end and the possibility of terminating the employment relationship arises. That dismissal can take place via a dismissal permit from UWV or via a settlement agreement. In both cases, the following applies: you are entitled to a transition payment. The law makes no distinction between an employee who is ill and an employee who is in good health at the time of dismissal.

One exception to bear in mind: if you yourself have acted in a seriously culpable manner, or if your employer becomes insolvent before the payment is made, the entitlement may lapse or the payment may not be made. In all other cases, the transition payment is a firm statutory entitlement.

How the amount of your transition payment is calculated

The method of calculation for sick employees is identical to that used in a regular dismissal. You accrue one third of a gross monthly salary for each year of service completed, with the period of illness counting in full towards the calculation of the length of your employment. The calculation runs to the exact day: partial years of service are also taken into account on a pro-rata basis.

Pay close attention to the salary used as the basis for calculation. In addition to the basic gross monthly salary, holiday allowance and any end-of-year bonus also count towards the calculation basis. If during your illness your salary has fallen back to 70% of your normal pay, it is that lower amount that forms the basis — which reduces the outcome. That alone is reason enough to always have your employer's calculation checked.

In 2026 the statutory maximum transition payment amounts to € 102.000 bruto. If you earn more than € 102,000 per year, your gross annual salary applies as the maximum.

Payment deadline and what to do if payment is not made

Your employer is obliged to pay the transition payment no later than one month after the end of the employment contract. If payment is not made on time, you are entitled to statutory interest on the outstanding amount. However, if you wait too long before taking action, your entitlement may lapse: the statutory limitation period is three months after the date on which the payment should have been made.

The dormant employment relationship and your transition payment

Some employers take no action whatsoever after two years of illness. They do not end the employment contract, stop paying wages, but also do not formally dismiss you. This is known as a dormant employment relationship. For you as an employee, this is an undesirable situation, because as long as the employment contract does not end, you will not receive a transition payment. In such a situation, you can hold your employer legally accountable to end the employment relationship and pay out the transition payment.

The compensation scheme for employers and what this means for you

Until recently, employers could reclaim the full transition payment for dismissal after two years of illness from the UWV. This made employers less reluctant to proceed with dismissal. From 1 July 2026, this compensation scheme will apply only to employers with fewer than 25 employees. Larger employers will no longer be able to claim reimbursement of the transition payment paid from the UWV.

For you as an employee, nothing changes in substance: your right to the transition payment remains fully intact, regardless of the size of the company you work for. The legislative amendment affects only the financial position of the employer.

Practical tips if you are dismissed after 2 years of illness

• Always check the calculation. Employers regularly make mistakes when determining the basis for calculation or the length of the employment relationship, often in their own favour.
• Ask for a breakdown. Ask your employer to set out in writing how the amount has been arrived at.
• Do not sign a settlement agreement without careful consideration. First check whether the transition payment has been included correctly and whether there are no other unfavourable clauses.
• Let op de ontslagroute. With a settlement agreement you can negotiate; with a UWV dismissal permit you have less room to manoeuvre.
• Keep an eye on the time limit. You have three months to take legal action if the payment is not made.
• Laat je tijdig adviseren. As soon as your employer starts the conversation about dismissal, it is advisable to engage an employment lawyer.

More general information about the calculation and the entitlement to this payment can be found on our overview page about the transition payment.

Why Employment Lawyer Eindhoven

Two years of illness followed by dismissal: it is a situation in which you want clarity as quickly as possible. At Arbeidsjurist Eindhoven we support employees in the Eindhoven and Brabant region in exactly these kinds of processes. We check whether the transition payment has been calculated correctly, assess a settlement agreement from start to finish, and represent you if your employer does not cooperate. Please feel free to contact us without obligation for an initial discussion about your situation.

Frequently asked questions

Am I always entitled to a transition payment after 2 years of illness?

In most cases, yes. If your employer terminates the employment after two consecutive years of illness, you are legally entitled to a transition payment. Exceptions apply in cases of serious culpable conduct on your part as an employee, in the event of the employer's bankruptcy, or if you have reached the state pension age (AOW).

Does the period of illness count towards the calculation of the transition payment?

Yes. The period during which you have been ill counts in full as part of the length of the employment. No distinction is made between time worked and periods of illness when determining the number of years of service.

What is the maximum transition payment in 2026?

The maximum transition payment in 2026 amounts to €102,000 gross. If you earn more than €102,000 per year, your gross annual salary applies as the statutory maximum.

What is a dormant employment contract and how do I still receive my transition payment?

A dormant employment contract arises when your employer takes no action after two years of illness: no salary is paid, but the employment is not formally terminated either. In that situation you have no entitlement to payment of the transition payment for as long as the employment continues to exist. You can, however, hold your employer legally accountable to terminate the employment and pay the transition payment after all. Seek guidance from an employment lawyer in this matter.

How long does my employer have to pay the transition payment?

Your employer must pay the transition payment no later than one month after the end of the employment contract. If they fail to do so, you are entitled to statutory interest. Do not wait too long to take action: the limitation period for taking legal steps is three months after the date on which the payment should have been made.

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.