Dismissal during illness is usually prohibited in the Netherlands. However, employers sometimes come up with creative ways to dismiss a sick employee. When is it allowed, and when is it not allowed? The employment lawyers of Arslan Advocaten explain the rules, the exceptions, and how you can protect yourself as an employee.
The statutory ban on notice during illness
In Article 7:670 paragraph 1 of the Dutch Civil Code, it is stated that an employer may not dismiss an employee during the first 104 weeks of illness. This is known as the sickness dismissal ban. The aim is to protect sick employees and make reintegration possible.
During this period, the employer must (partially) continue to pay salary and work with the employee on recovery and return. A labour dispute or disagreement does not change this.
Exceptions to the ban on notice
However, there are situations in which dismissal during illness is possible. The law allows a limited number of exceptions:
1. Dismissal during probation period
During the probationary period, an employer can terminate the employment contract at any time, even in case of illness. This only applies if the probation period has been agreed upon legally and does not last longer than one month.
2. Dismissal for economic reasons
In the event of a reorganisation or economic necessity, an employer can sometimes also dismiss sick employees. However, this must be done through the UWV, with evidence of financial necessity and a correct transition compensation.
3. Dissolution due to serious culpable action
If an employee seriously misbehaves – for example, commits fraud or refuses to cooperate with reintegration on a structural basis – the employer can request dismissal at will or dissolution through the sub-district court, even during illness.
4. End of a temporary contract
A temporary contract automatically expires on the agreed end date, even if the employee is sick. The employer does not have to extend the contract but must pay the transition compensation.
Dismissal during illness in case of long-term incapacity for work
After two years of illness, the dismissal ban expires. With the consent of the UWV, the employer may then terminate the employment contract if recovery is not expected in the short term. This is known as dismissal due to long-term incapacity for work.
The employee is then entitled to a transition compensation and possibly also to a benefit based on the Sickness benefits Act or the WIA. The UWV strictly tests whether the employer has done enough reintegration. If this is not the case, the UWV can impose a wage sanction and the employer must continue to pay for a longer period.
Reintegration obligations
Both the employer and the employee have reintegration obligations. The employer must offer suitable work, organise guidance and regularly consult with the company doctor. The employee must cooperate with his recovery and adhere to the plan of action. If an employee refuses this, this can affect his right to wage or dismissal protection.
Sample from practice
An employee reported sick due to tension at work but refused any contact with the employer. After months without consultations, the employer asked for dissolution due to work refusal. The sub-district court agreed with the employer: the employee had violated his reintegration obligation and lost his dismissal protection.
Dismissal during illness and transition compensation
In case of dismissal during illness or immediately afterwards, the employee is in principle entitled to a transition compensation. This compensation compensates for the loss of job and is also due in case of long-term incapacity for work. Only in case of seriously culpable behavior of the employee can this right expire.
What the right is based on, and when it lapses. The transition compensation arises under Article 7:673(1)(a) of the Dutch Civil Code in three situations: the employment contract has been terminated by the employer, dissolved at the employer’s request, or not continued after expiry by operation of law on the employer’s initiative. If the contract ends on your own initiative, that right does not exist — unless this is the result of seriously culpable acts or omissions by the employer (Article 7:673(1)(b) of the Dutch Civil Code). That distinction is crucial in cases of long-term illness: if you sign a termination proposal yourself or resign, you may lose the compensation you would have received had the employer given notice.
If you do not receive the compensation, you have to go to the subdistrict court, and there a hard deadline applies: the power to submit the petition lapses three months after the day on which the employment contract ended (Article 7:686a(4)(b) of the Dutch Civil Code). This is a limitation period of a special kind (vervaltermijn), not an ordinary prescription period: it cannot be interrupted by a letter or an e-mail, and once it has expired the claim is definitively gone. If payment is late, statutory interest is also due on the transition compensation from one month after the day the employment contract ended (Article 7:686a(1) of the Dutch Civil Code).
The other way round: can you resign while you are ill?
This is one of the most frequently asked questions about illness and work, and the answer often comes as a surprise. Legally you may: the ban on notice protects you against your employer terminating the contract, not against terminating it yourself. So you can resign, observing your notice period. Financially, however, it is one of the most expensive steps you can take while you are ill, because you usually forfeit two benefits at once.
Unemployment benefit (WW). Article 24(1)(a) of the Unemployment Insurance Act (Werkloosheidswet, WW) obliges you to prevent becoming culpably unemployed. Paragraph 2(b) defines when that is the case: where the employment has been ended by or at the request of the employee without such objections being attached to its continuation that continuation could not reasonably be required of him. Resigning yourself normally falls within that definition. The sanction in Article 27(1) WW is severe: the UWV reduces the benefit permanently by that amount. Only where the failure cannot be blamed on you to a predominant degree is the reduction limited to half, for a maximum of 26 weeks.
And the Sickness Benefits Act. On top of that comes a second sanction that many people do not see coming. Article 45(1)(j) of the Sickness Benefits Act (Ziektewet) calls it a prejudicial act (benadelingshandeling) where, by your acts or omissions, you harm the fund or could harm it. By resigning while you are ill, your claim to wages is converted into a claim to benefit. The UWV may then refuse the sickness benefit in whole or in part, temporarily or permanently.
The outcome is therefore: ill, no wages, no unemployment benefit and no sickness benefit. Exactly the same trap lies in signing a settlement agreement while you are ill; what goes wrong there and what you need to arrange beforehand is set out in our article on the settlement agreement and illness.
Already receiving sickness benefit, without an employer? Then resigning is no longer at issue: there is no employment contract to terminate. Article 45 of the Sickness Benefits Act does, however, apply in full to your conduct during the benefit period. Do not refuse suitable work, comply with the monitoring rules and report changes on time, because the sickness benefit can be refused in those cases too.
What to do instead when things really are unbearable. Do not resign because the situation feels untenable; first put on record why that is so.
- Set out your objections in writing and send them to your employer. What exactly happened, on which dates, and what did you ask for? This file will later be decisive for the question whether continuation could reasonably be required of you.
- Involve the company doctor and ask for an assessment of your capacity for work and of adjustments to the job. If you disagree with that assessment, request an expert opinion (deskundigenoordeel) from the UWV.
- Ask for different or adapted work instead of asking to leave. During illness your employer has a reintegration obligation; that applies even if you can no longer cope with the work under your own manager.
- Have the route assessed before you sign or resign. If there is an urgent reason on your side, resigning need not amount to culpable unemployment, but that exception is narrow and must be substantiated with documents.
New developments and case law
Judges now more critically test whether employers comply with their duty of care. Recent rulings have shown that employers who opt for termination too quickly are being called to order. Attention for burn out and work stress also plays a role in this: an employer has to actively contribute to recovery, not just follow the rules administratively.
What can you do in case of dismissal during illness?
Are you being dismissed while you are ill? Then act quickly:
- Keep all communication and correspondence with your employer.
- Check if your dismissal falls under an exception.
- Contact an labor law attorney within two months.
- File a complaint with the UWV or start a procedure with the sub-district court if necessary.
A timely legal reaction is crucial. Otherwise, you run the risk of dismissal becoming legally valid, even if it was unjust.
Frequently asked questions about dismissal during illness
Can my employer dismiss me while I’m sick?
Not in principle. During the first 104 weeks of illness, a dismissal ban applies. Only in exceptional situations, such as economic need or serious misbehavior, dismissal might be possible.
Do I get a transition compensation after dismissal due to illness?
Yes, you are entitled to a transition payment after termination of two years of illness, unless you acted in a seriously culpable way.
What if my employer disputes my illness?
If there is doubt about the incapacity to work, the employer can request an expert opinion from the UWV. A lawyer can help you protect your rights.
What if I resign during illness?
It is legally possible, but it is usually the most expensive step you can take. By resigning you are normally culpably unemployed within the meaning of Article 24(1)(a) and (2)(b) WW, which means the UWV reduces your unemployment benefit permanently (Article 27(1) WW). On top of that, resigning while ill can be regarded as a prejudicial act under Article 45(1)(j) of the Sickness Benefits Act, so the sickness benefit may be refused as well. The result is: ill, no wages, no unemployment benefit and no sickness benefit. Always have an employment law attorney review it first.
How long do I have to claim the transition compensation?
Three months. Article 7:686a(4)(b) of the Dutch Civil Code provides that the power to submit a petition to the subdistrict court lapses three months after the day on which the employment contract ended. This is a strict lapse period: it cannot be interrupted by a reminder or an e-mail, and it continues to run during negotiations. If your employer pays nothing or too little, do not wait until the talks break down, but make sure the petition is filed within those three months. Statutory interest is also due on a transition compensation paid late, from one month after the end of the employment contract (Article 7:686a(1) of the Dutch Civil Code).
Arslan Attorneys provides help during dismissal during illness
The employment law specialists of Arslan Advocaten have extensive experience with disputes over dismissal during illness, reintegration and transition compensations. We advise both employees and employers on their rights and obligations. Please contact for immediate legal advice.
Frequently Asked Questions
Is an employer allowed to dismiss me while I am on sick leave in the Netherlands?
Generally, dismissing an employee during the first 104 weeks of illness is prohibited by law to protect sick employees and support their recovery. Dismissal during this period is only allowed under specific exceptions such as probation period, economic reasons, serious misconduct, or end of a temporary contract.
What are the exceptions that allow my employer to dismiss me while I am ill?
Your employer can dismiss you during illness if it’s during the probation period (up to one month), for economic reasons with proper approval, due to serious misconduct, or if your temporary contract ends. Each exception has specific legal conditions that must be met.
Can I be dismissed after two years of illness?
Yes, after two years of illness, the dismissal ban expires, and the employer can request termination with UWV approval if recovery is unlikely. You are entitled to transition compensation and possibly benefits under the Sickness Benefits Act or WIA.
What obligations do I and my employer have regarding my reintegration during illness?
Both you and your employer have reintegration obligations; your employer must offer suitable work and organize guidance, while you must cooperate with recovery efforts and follow medical advice to facilitate your return to work.
