When you become ill, your employer cannot dismiss you for the first two years. During this period, the employer must continue to pay your salary and work with you on reintegration. But what happens if you still can’t work after those two years? Then dismissal due to long-term incapacity for work may be considered.
In this article, we explain how dismissal after long-term illness works, what rights you have, and what compensations you can expect.
Dismissal ban during the first 2 years of illness
The first two years of illness applies a notice ban. That means:
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Your employer cannot dismiss you.
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Your salary must be paid at a minimum of 70%.
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You and your employer are obliged to cooperate on your reintegration.
Only in exceptional cases, such as bankruptcy or instant dismissal, can termination occur earlier.
Dismissal after 2 years of illness
After two years of illness, the employer can apply for dismissal at the UWV due to long-term incapacity for work. The conditions are:
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You can no longer do your own work.
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Reassignment to another job is not possible.
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The reintegration process has been completed.
The UWV checks whether the employer and employee have made sufficient efforts to make reintegration succeed.
Transition compensation in case of dismissal due to long-term illness
Since 2020, you are also entitled to a transition allowance in case of dismissal after long-term illness.
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This compensation is calculated based on your years of service.
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The employer can receive compensation for this from the UWV.
👉 This means that keeping a contract “dormant” is no longer an excuse for employers to avoid the compensation.
Dormant employment
Many employers kept employees on staff after 2 years of illness without paying wages to avoid having to pay a transition compensation. The Supreme Court has ruled that this is not allowed: the employer must cooperate in terminating the employment contract with payment of the transition compensation.
Settlement agreement in case of illness
Sometimes the employer offers a settlement agreement (VSO) to manage the dismissal. Pay attention:
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Make sure the transition compensation is correctly calculated.
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Watch out for your right to a WIA benefit and coordination with the UWV.
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Negotiate for extras where possible, such as outplacement or a training budget.
Examples from practice
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Example 1: An employee was ill for 2 years and was offered a VSO. After checking, the transition compensation was calculated too low. After negotiation, he received an extra € 4,000.
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Example 2: An employer kept an employee “dormant” in service. The judge ruled that the employment contract had to be terminated with transition compensation.
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Example 3: An employee was partially fit for work after 2 years. The UWV ruled that redeployment was not possible, which allowed dismissal.
Checklist dismissal after long-term illness
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📑 Check if the reintegration process has been completed correctly.
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📅 Check if the period of 2 years of illness has fully elapsed.
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💶 Check if the transition compensation is correct.
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📝 Consider a VSO with extras on top of the transition compensation.
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⚖️ Always have your situation checked by a labour law solicitor.
Common mistakes
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Thinking that the employer can automatically dismiss after 2 years.
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Accepting a too low transition compensation.
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Not knowing that there is also a right to compensation in case of long-term illness.
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Not seeking legal advice in a VSO.
Frequently Asked Questions (FAQ)
1. Can my employer dismiss me if I am sick?
Not in the first 2 years, thereafter sometimes.
2. Am I entitled to transition compensation after dismissal after 2 years of illness?
Yes, always since 2020.
3. What is a dormant employment contract?
When the employer keeps you in service after 2 years of illness in order not to have to pay a transition compensation. This is no longer allowed.
4. How high is my transition compensation?
1⁄3 monthly salary per year worked, calculated pro rata.
5. Should I sign a VSO in case of dismissal after illness?
No, but it can sometimes be favourable to negotiate for extras. Always get this checked.
Why Arslan Lawyers?
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Specialised in dismissal in case of illness and reintegration
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Checking whether your rights during and after illness have been respected
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Negotiating over VSOs and compensation
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Ensuring that you get what you are entitled to, even in case of long-term incapacity for work
Conclusion
Dismissal in case of long-term illness is only allowed after 2 years of incapacity for work and if reintegration is not possible. You always retain the right to transitional compensation and do not have to accept a dormant employment contract. Always let a lawyer have a look, so that your rights remain protected.
