A common question is whether an employer during illness a settlement agreement (VSO) may offer. The answer is: yes, that is allowed, but it does carry risks. As an employee who is ill, you are more vulnerable, and there is a chance you could miss out on important rights or benefits if you sign carelessly.
In this article, we explain what the rules are, when it may be wise to accept a VSO during illness, and what you should pay very close attention to before you sign.
May an employer offer a VSO during illness?
Yes, an employer may also offer a VSO during illness. But strict rules apply:
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The employee must agree voluntarily.
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The reason for termination may not culpable are.
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The agreements must be laid down in such a way that the UWV the WW benefit or Sickness Benefits Act benefit does not refuse.
Protection against dismissal during illness
During illness, as an employee you enjoy protection against dismissal. This means that your employer, in principle, may not terminate your employment contract during the first two years of illness or incapacity for work—the so-called prohibition on termination during illness. This legal protection prevents you from simply losing your job while you are ill.However, there are some exceptions to this prohibition on termination. Your employer can only terminate your contract during illness if you to it consent to it yourself (for example via a VSO), in the event of summary dismissal, or when the company goes bankrupt or a business unit is divested.In short: a VSO during illness is possible, provided that all conditions are met and your rights as an employee remain safeguarded.
Dismissal in case of reorganization or business closure during illness
Although the basic principle is that, as a sick employee, you are protected against dismissal, there are exceptions to this rule. The prohibition on termination during illness does not apply in all situations.
- Reorganization: When positions are eliminated due to a reorganization or business-economic circumstances—and this necessity is well substantiated—an employer can apply to the UWV request permission to also dismiss sick employees. This is allowed, provided that your illness is not the reason, but purely the elimination of your position.
- Business closure: Is the company closing (in whole or in part) or going bankrupt? Then an exception also applies and an employer may terminate the employment contract, even if you are sick at that time. In such cases, dismissal cannot be prevented by the prohibition on dismissal due to illness.
Always make sure that your employer follows the correct procedures and that your illness may never be the (direct or indirect) reason for your dismissal. If you have doubts about whether everything is proceeding according to the rules, it may be wise to seek legal advice.
Can summary dismissal occur while you are sick?
Yes, summary dismissal is also possible during illness. In exceptional cases, for example in cases of serious misconduct such as theft or fraud, the dismissal ban due to illness lapses. The employer must, of course, be able to demonstrate that the dismissal is immediately necessary and fully justified. It is important to proceed carefully, because in the case of an unjustified summary dismissal the employee can challenge the decision.
Risks of a settlement agreement (VSO) during illness
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Loss of entitlement to pay during illness
Normally, the employer must continue to pay wages for up to 2 years during illness. With a settlement agreement, this can end. -
No entitlement to a Sickness Benefits Act (ZW) benefit
If the reason for dismissal is worded incorrectly, the UWV may deny your benefit. -
Employer pressure
Sick employees are more vulnerable and feel pressured more quickly to sign.
What happens after two years of incapacity for work?
Have you been sick for two years? Then the prohibition on dismissal during sickness ends. In that case your employer may terminate the employment contract. Usually the employer applies for a dismissal permit for this from the UWV. Only when the UWV grants permission, the employment contract can be officially terminated.Note: your right to wages ends after this period, unless a wage sanction is imposed on the employer by the UWV because he has not done enough toward reintegration. You may also be able to apply for a benefit after dismissal, depending on your situation.
Dismissal for refusal to work during illness
Although you are ill, this does not mean you can simply ignore every instruction from the employer or company doctor out of hand. If, without a valid reason, you refuse to cooperate with reintegration, such as trying adjusted work or attending meetings, then your employer can still dismiss you. The prohibition on dismissal during illness does not apply if there is refusal to work or insufficient cooperation with recovery.
When can a VSO during illness be advisable?
In some situations a settlement agreement (VSO) during illness can actually be a solution, for example:
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In the case of a long-term disrupted employment relationship, making reintegration infeasible.
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If there is a good severance package in return that is higher than the statutory transition payment.
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When you are certain that you have a new job or other income.
👉 Example: An employee was at home sick for 18 months, with no prospect of returning. Through a settlement agreement (VSO) he received a generous compensation and a training budget to learn a new profession.
Examples from practice
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Example 1: An employee signed a settlement agreement (VSO) during illness with the reason “insufficient performance”. The UWV then refused the Sickness Benefits Act benefit.
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Example 2: An employee received a settlement agreement (VSO) during illness, but the notice period was incorrect. He had to wait 2 months longer for his unemployment benefits.
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Example 3: An employee with a burnout received, through negotiations, an additional payment of € 10.000 on top of the transition compensation to cover recovery and retraining.
Checklist: settlement agreement (VSO) during illness
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📄 Check the reason for dismissal – it must be neutral.
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📅 Check the notice period – a mistake can cost you your benefits.
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💶 Negotiate a higher compensation (for the loss of continued wage payment).
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⚖️ Always have the settlement agreement legally reviewed.
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🕑 Remember: you have a 14-day statutory cooling-off period.
Are you being offered a settlement agreement while on sick leave?
Have you received a termination agreement while you’re sick? Don’t be alarmed—this doesn’t have to be disadvantageous, but it’s important to be critical before you sign anything. There’s often room to negotiate better terms and a higher severance payment, especially if you’ve been on sick leave for a longer period or there’s a strained employment relationship.Always have your settlement agreement reviewed before you agree. This way, you ensure you keep your entitlement to unemployment or sickness benefits and avoid unpleasant surprises afterward. A legal specialist can assess within a few hours whether there are points for improvement and whether you can get more out of your termination.It almost always pays to have your offer looked at carefully—you can often get more out of it than you think!
How can you calculate the amount and duration of your unemployment benefit?
If you are facing dismissal, it’s understandable that you want to know where you stand financially. Fortunately, you can easily calculate how much unemployment benefit you can expect and how long you will receive it.Want a quick, accurate estimate? Then use the WW calculator from the UWV. Follow these steps:
- Go to the UWV website and search for the “WW calculator”.
- Enter your most recent salary details.
- Indicate how many years you worked prior to the dismissal.
- Answer the remaining short questions.
After completing it, you’ll immediately see a clear estimate of both the monthly amount and the expected duration of your WW benefit. That way you’ll know exactly what to expect during the period after dismissal.
Frequently Asked Questions (FAQ)
1. Can my employer dismiss me while I am sick?
No, generally not. Only via a VSO can dismissal during illness by mutual agreement.
However, there are a few exceptions to the prohibition on dismissal during illness. For example, the prohibition does not apply if you give written consent to the dismissal, if you are summarily dismissed, or if your employer divests a business unit or goes bankrupt. In these situations, dismissal during illness can still occur.
2. Do I keep my entitlement to WW or Ziektewet with a VSO?
Yes, provided the VSO is drafted correctly.
3. Do I have to sign a VSO if I am sick?
No, this is always voluntary.
4. Do I receive compensation if I’m dismissed while on sick leave?
Yes, at least the statutory transition payment, often more through negotiations.
How can you calculate the amount of your transition payment?
Want to know what you’re entitled to upon dismissal? Fortunately, calculating your transition payment isn’t rocket science. The amount depends on your gross monthly salary and the number of years you have been employed.Here’s how it works step by step:
- Transition payment per year of service: You receive 1/3 of a month’s salary per full year of service.
- So calculate: Multiply your gross monthly salary by 1/3, then multiply that amount by the number of full years of service.
- For partial years: You are also entitled to a proportional share for an incomplete year of service.
There are online tools (such as the calculator from the UWV) that lets you easily and quickly calculate your transition compensation. Enter your salary, duration of employment, and the start dates, and you will immediately see the amount you are entitled to. This way you will know within a minute what to expect in case of dismissal.
5. Can I retract my signature afterward?
Yes, you have a statutory 14-day cooling-off period.
What questions can you ask a lawyer about dismissal while sick?
Are you dealing with illness and impending dismissal? Then it is wise to first seek advice from a specialist. For example, you can ask an employment lawyer the following:
- Is my dismissal legally valid, given my sick leave?
- Am I covered by the termination ban due to illness?
- Am I entitled to a transition allowance or even more?
- Can I negotiate an extra payment or favorable terms?
- Do I still have to work during the notice period, or can I be released from work?
- What happens to a non-compete or non-solicitation clause in my situation?
A lawyer can therefore help you assess your position, protect your rights, and ensure you don’t overlook anything before you agree to a settlement agreement.
Leaving employment while sick during your probationary period: what now?
Do you fall ill during your probationary period and does your contract end? That can happen, because during the probationary period both you and the employer may terminate with immediate effect, with or without a reason—even if you are ill. The prohibition on termination during sickness does not apply in this period.What should you watch out for?
- During the probationary period you have no protection against dismissal due to sickness.
- If you are reported as sick upon leaving employment, you can usually immediately apply for a Sickness Benefits Act benefit at the UWV.
- You are not entitled to a transition payment, because the employment has lasted less than two years.
- The employer does not have to give a reason for termination during the probationary period.
Note: Always report sick to your employer immediately if you become ill during your probationary period. If your contract then ends while you are ill, then immediately contact the UWV to check whether you are entitled to a benefit. This prevents unnecessary loss of income.Tip: Always request the termination or end of the contract in writing, and keep it safe. That is important for your application with the UWV.
Common mistakes with a VSO during illness
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Signing too quickly under pressure from the employer
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No neutral reason for dismissal in the agreement
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Not asking for compensation on top of the transition allowance
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Not having a legal check carried out
Why Arslan Advocaten?
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Protect your rights during illness
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Check whether your WW or Sickness Benefits entitlement is maintained
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Negotiate for higher compensation and extras
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Help you with a careful and safe termination of your employment
Conclusion
A settlement agreement during illness is possible, but carries additional risks. Never sign lightly and always have the agreement checked by an employment lawyer. Only then can you be sure that you do not miss out on your salary or benefits and that you receive fair compensation.
