Settlement Agreements During Illness and the Role of the UWV

Settlement agreement during illness and the role of UWV

When a settlement agreement is concluded during illness, UWV plays an important role. Below you can read what to look out for in order to protect your entitlement to unemployment benefit (WW).

If you sign a settlement agreement while you are ill, UWV plays a greater role than most people expect. UWV assesses whether you are entitled to a benefit after the end of your employment, and illness makes that assessment considerably more complicated. It is therefore wise to understand how UWV looks at this before you put your signature to anything.

What does UWV do in the case of a settlement agreement?

When your employment contract ends by means of a settlement agreement, UWV regards this as a dismissal by mutual consent. That may sound neutral, but UWV always assesses whether you personally agreed to leave. If that is the case, you may lose your unemployment benefit (WW) because you are considered to have become unemployed through your own fault.

However, there is an exception: if your employer had an urgent reason to dismiss you and you could not have prevented that reason, or if there were reasonable grounds for dismissal, UWV may decide that there is no question of culpable unemployment. In practice, this is assessed on a case-by-case basis.

Illness makes the situation particularly sensitive

As soon as illness is involved, an additional layer comes into play. UWV looks not only at the unemployment benefit (WW), but also at any entitlement to a Sickness Benefit. If you are still ill at the time your employment ends, you may, under certain circumstances, be able to claim the Sickness Benefit — also known as the 'safety net scheme'.

But please note: that entitlement does not automatically lapse if you sign a settlement agreement. Whether you are actually entitled to it depends on your situation at that time. If, for example, you are ill without a permanent employer, or your contract ends during illness, the Sickness Benefit Act (Ziektewet) may offer a solution. UWV assesses this when you submit your application.

When does UWV inform you?

The UWV plays no active role during negotiations over a settlement agreement. You and your employer conclude that agreement between yourselves. The UWV only becomes involved after your employment has ended and you apply for a benefit. At that point, the UWV assesses the circumstances of your departure.

This makes it all the more important to be fully clear about your position before signing. What you agree now will have a direct bearing on what the UWV will — or will not — pay out later.

What should you look out for in the settlement agreement?

The wording of the agreement determines how the UWV assesses your situation. A number of matters deserve particular attention:

• De reden van het ontslag: Make sure it is clear that the initiative lay with the employer and that there was a reasonable ground for the dismissal. This protects your entitlement to unemployment benefit (WW).
• De einddatum: Check whether the end date corresponds to the notice period you are entitled to. An end date that is too early can have an adverse effect on your benefit.
• De beëindigingsreden: Word this carefully. If the text contains anything suggesting that you decided to leave of your own accord, the UWV may treat this as culpable unemployment.
• Indemnification and full and final settlement: Pay close attention to what you are and are not waiving. Certain clauses may affect entitlements to benefits or other payments.
• Bedenktijd: As an employee you have a statutory right to a fourteen-day cooling-off period after signing. Use that period to have everything thoroughly reviewed.

Wat kun je zelf doen?

It is advisable not to rely solely on what your employer or HR tells you about your rights. They act in their own interests. What you can do:

• Ask an independent employment law specialist to review the agreement before you sign.
• Enquire with the UWV (or have your adviser do so) whether your situation entitles you to a Ziektewet benefit or unemployment benefit (WW).
• Check that the ground for dismissal stated in the agreement matches the actual situation.
• Do not let yourself be rushed. An employer cannot force you to sign quickly.

For a complete overview of everything involved when you are ill and are offered a settlement agreement, read more on the overview page Settlement agreement during illness: everything you need to know.

Why Employment Lawyer Eindhoven

At Arbeidsjurist Eindhoven we assist employees in the Eindhoven and Brabant region who are faced with a settlement agreement during illness. We know the local practice, understand how the UWV reasons, and think through with you what the best step is for your situation. No complicated legal jargon, just clear explanation and practical support.

Would you like to know what your situation looks like before you make a decision? Feel free to contact us with no obligation. We are happy to explore the options together with you.

Frequently asked questions

Will I lose my right to unemployment benefit (WW) if I sign a settlement agreement while I am ill?

Not necessarily. If the ground for dismissal in the agreement is correctly worded and the initiative lay with the employer, the UWV will generally not treat this as culpable unemployment. Always have the wording checked before you sign.

Can I apply for a Sickness Benefit (Ziektewet) after a settlement agreement?

In certain situations, yes. If you are still unfit for work at the time your employment ends and you fall under the safety-net provision of the Ziektewet, you can submit an application to the UWV. Whether you are entitled to this depends on your specific circumstances.

Does the UWV play a role during negotiations over the settlement agreement?

No, the UWV is not involved in the negotiations. Only after your employment has ended, when you apply for a benefit, does the UWV assess the situation. That is precisely why it is important for the agreement to be properly drafted in advance.

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.