Settlement Agreement with Partial Incapacity for Work: What Are the Consequences?

Settlement agreement (VSO) in the event of partial incapacity for work: the consequences

A settlement agreement (VSO) in the event of partial incapacity for work has consequences for your benefit and income. Below you can read what you need to take into account.

Are you partially incapacitated for work and has your employer offered you a settlement agreement? If so, you are facing a complex decision. Partial incapacity for work makes the situation legally more complicated than a 'straightforward' dismissal, because your benefit entitlements and reintegration obligations play a significant role. It is therefore important that you understand the consequences before you sign anything.

What exactly is partial incapacity for work?

Partial incapacity for work arises when, due to illness or injury, you are no longer able to work to your full capacity but are still able to work to some extent. Think, for example, of someone who, due to back problems, can only work four hours a day instead of eight.

After two years of sick leave, the UWV assesses whether you are entitled to a WIA benefit. Those who are between 35% and 80% incapacitated for work fall under the WGA (Return to Work for the Partially Incapacitated). This is a specific category with its own rules, and it is precisely here that complications arise in the context of a settlement agreement.

What changes when you sign a settlement agreement?

A settlement agreement (also known as a VSO or termination agreement) means that your employment ends by mutual consent. This may sound straightforward, but the consequences can be significant if you are partially incapacitated for work.

Consequences for your WGA benefit

If you are already receiving a WGA benefit and are also still partially working for your employer, signing a VSO may affect the amount of that benefit. The UWV takes your income alongside the benefit into account. As soon as that income falls away, the UWV will recalculate your benefit entitlement.

Furthermore, the UWV may take the view that you have terminated the employment contract 'culpably'. This may result in a measure being imposed on your benefit, such as a temporary reduction. Whether this actually happens depends on the circumstances of your specific case.

Consequences for your reintegration process

As long as you are employed, your employer is obliged to invest in your reintegration. That obligation lapses at the moment the employment contract ends. This means you may lose guidance, workplace adjustments, or a suitable position. It is important to be aware of what you are giving up when you agree to a VSO.

What should you look out for during negotiations?

A settlement agreement is rarely a ready-made document that you simply have to accept. There is almost always room for negotiation. In the case of partial incapacity for work, make sure you pay attention to the following:

• Transitievergoeding: Check whether the offered payment has been calculated correctly. In principle, you are always entitled to this, even in the case of partial incapacity for work.
• Einddatum: Ensure that the employment contract does not end any earlier than necessary, so that you make full use of the three-week reflection period.
• Neutrale ontslagreden: Have it recorded in writing that the dismissal is not attributable to you. This is important for the UWV's assessment in the event of a WW or WGA claim.
• Uitkeringsrechten: Check with the UWV in advance what the consequences will be for your current or future benefit.
• Aanvullende vergoeding: In the case of partial incapacity for work, it is sometimes possible to negotiate a higher payment, particularly if your employer has not fully met their reintegration obligations.
• Bedenktermijn: You have a statutory period of three weeks in which to withdraw from the agreement after you have signed it. Make use of that time.

Is your employer allowed to offer you dismissal in the event of partial incapacity for work?

Your employer may offer you a settlement agreement, but cannot force you to sign it. As long as you are on sick leave, a dismissal protection in principle applies. This protection shields you against unilateral dismissal, but does not prevent you from agreeing to a termination yourself.

There are, however, situations in which it may be logical or even sensible to agree, for example if reintegration is no longer realistic or if an attractive payment is on offer. The key is that you make a well-considered decision based on complete information.

For a broader overview of everything relating to your rights during illness and a termination agreement, we recommend you also visit the page Settlement agreement during illness: everything you need to know te lezen.

Frequently asked questions

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

Not automatically. The UWV assesses whether you are culpably responsible for the termination. If there is a valid reason and the reason for dismissal is recorded in neutral terms, the risk is smaller. However, always have this checked by a specialist.

Am I entitled to unemployment benefit (WW) if I am partially incapacitated for work?

That is possible, but depends on your situation. If you were working partly alongside your WGA benefit and that work comes to an end, you may be able to apply for unemployment benefit (WW) for the lost portion. Please consult the UWV or an employment lawyer for this.

Can I negotiate the contents of the settlement agreement?

Yes, absolutely. A settlement agreement is always a negotiating document. Particularly in cases of partial incapacity for work, there are often opportunities to negotiate better terms, such as a higher payment or a longer notice period.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we understand that a settlement agreement in cases of partial incapacity for work raises many questions. We are well acquainted with the local labour market in Eindhoven and the Brabant region, and will guide you calmly and concretely through all the legal aspects.

Would you like to know what your rights are and whether the settlement agreement you have been offered is fair? Please feel free to contact us without obligation. We would be happy to look at your situation together with you.

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.