Dismissal during illness: rules, exceptions, and your rights

14 September 2025
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Dismissal during illness: rules, exceptions, and your rights

Everyone can get sick. Fortunately, the law offers employees in such a situation strong protection. In most cases, an employer may not dismiss you during illness. However, there are exceptions and dismissal may be allowed in certain cases.

In this article, we explain how the ban on dismissal during illness works, what exceptions exist, and what your rights are.


Dismissal ban during illness

During the first 2 years of illness, a legal dismissal ban applies (art. 7:670 BW).

  • Your employer may not dismiss you during this period.

  • You are entitled to at least 70% of your salary.

  • You and your employer must cooperate on your reintegration.

This dismissal ban protects employees against job loss in a vulnerable period.


Exceptions to the dismissal ban

In a number of situations, the employer may still dismiss you during illness:

  1. Instant dismissal → for example in case of theft or fraud.

  2. Ending temporary contract → it does not need to be extended.

  3. Termination via settlement agreement (VSO) → but beware: only sign if your rights are guaranteed.

  4. Bankruptcy or closure → the contract can end despite illness.

  5. Dismissal due to long-term illness (after 2 years) → then dismissal via the UWV can take place.


Dismissal after 2 years of illness

After 2 years of illness, the employer can apply for dismissal with the UWV due to prolonged incapacity for work. You then have the right to a transition allowance.

👉 See also cornerstone #12 for more detailed explanation about dismissal after long-term illness.


Employer and employee reintegration obligation

  • The employer, together with the occupational health and safety service or company doctor, must create a plan of approach.

  • The employee must actively cooperate in reintegration.

  • After 2 years, the UWV checks whether both parties made sufficient efforts.

In case of insufficient effort, a wage sanction may be imposed that requires the employer to continue to pay wages for another year.


Settlement agreement during illness

Sometimes an employer offers a VSO during illness.

  • This may be detrimental to your right to benefits.

  • The UWV may rule that you became unemployed through your own fault.

  • Therefore, always have a VSO checked legally during illness.


Examples from practice

  • Example 1: An employee was offered a VSO without compensation during illness. After legal advice, he still received the transition allowance and an extra severance payment.

  • Example 2: A employer wanted to dismiss an employee during illness due to reorganization. The court nullified this dismissal because it was in conflict with the ban on dismissal.

  • Example 3: An employee did not cooperate enough in reintegration. The UWV ruled that dismissal after 2 years was justified.


Checklist dismissal during illness

  • 📅 Are you within the first 2 years of illness? Then the dismissal ban applies.

  • ⚖️ Check if the employer complies with reintegration obligation.

  • 📝 Don’t sign a VSO without legal advice.

  • 💶 Pay attention to your right to transition allowance after 2 years.

  • 📞 Always consult a labor lawyer in case of impending dismissal.


Common mistakes

  • Assuming that a temporary contract must be automatically extended during illness.

  • Signing a VSO without knowing the consequences for the benefits.

  • Not building a file of reintegration efforts.

  • Not realizing that you can still get dismissed after 2 years.


Frequently Asked Questions (FAQ)

1. Can my employer dismiss me during illness?
No, except in exceptions such as instant dismissal or after 2 years of illness.

2. Will I receive a salary during illness?
Yes, at least 70% for 2 years.

3. Do I have the right to a transition fee after 2 years of illness?
Yes, always since 2020.

4. Can I sign a VSO during illness?
That is possible, but it can have consequences for your benefit. Always have this checked.

5. What if my employer does not cooperate in reintegration?
Then the UWV can impose a wage sanction.


Why Arslan Lawyers?

  • Specialized in dismissal and illness

  • Check if the dismissal ban is being complied with

  • Negotiate in case of VSO’s during illness

  • Frequently achieve higher compensation for clients


Conclusion

During illness you are protected against dismissal for the first 2 years. However, employers sometimes try to say goodbye sooner. Often this dismissal is invalid or a higher compensation can be negotiated. Therefore, always have your situation reviewed by a labor lawyer.

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