Suppose your employer wants to fire you during illness. Or you want to resign during illness, for example because you have a burnout caused by your work. Is it wise to sign a settlement agreement during illness? And what about signing a settlement agreement and UWV-related issues such as the right to unemployment benefits? All this is explained below. Don’t feel like reading the entire article? Then you will first find a summary of the most important points:
In principle, an employer may not dismiss you during illness. It is also often unwise to leave employment while ill and to resign when you are ill. Sometimes it can be wise to enter into a settlement agreement during illness. This can be a good solution in the event of situational incapacity for work or burnout. Never sign a settlement agreement without good reason and do not leave employment while ill; the UWV may decide that you are culpably unemployed and refuse you unemployment benefits. Therefore, always consult a dismissal specialist first before you decide to agree to a settlement agreement during illness.
Settlement agreement in case of illness
A settlement agreement, also known as a termination agreement, is a legal document used by employers and employees to arrange the conditions for terminating an employment contract. An employer and employee part ways with each other by mutual consent through a settlement agreement. In the event of an employee’s illness, the parties can also part ways and separate with a settlement agreement. However, this is not always wise.
Can your employer fire you during illness?
In the Netherlands it is in principle not permitted for an employer to dismiss an employee during illness. Employers are obliged to continue paying the sick employee’s wages during the first two years of illness and to ensure appropriate reintegration measures. Dismissal during illness is only possible if there is an exceptional situation and if the illness is not the cause of the dismissal.
Dismissal via the UWV
Your employer could try to get a dismissal permit from the UWV. If you are ill at the time of the application, the permit will in principle be refused. With a few exceptions, your employer cannot dismiss you during illness via the UWV.
Dismissal through the court
Another option for the employer to dismiss you during illness would be via the subdistrict court. However, the court will also in principle not give permission for dismissal if the reason for dismissal is directly related to your illness. However, you can be dismissed for other reasons, such as poor performance, provided that this is not related to your illness. That will not often be the case.
It is therefore very difficult for your employer to fire you during illness. If you do not cooperate with your reintegration, your employer could dismiss you, unless you have a valid reason for not cooperating. For example, you can consider the situation in which reintegration has a negative impact on your health. Before your employer proceeds with dismissal for frustrating reintegration, he will first have to warn you. He can also first stop your salary before dismissing you during your illness.
Resigning during illness
As an employee, you can of course also resign during your illness. However, this is usually not recommended. Yet employees sometimes consider this, for example if they no longer want to remain employed due to a labor dispute. Often such a labor conflict has caused the disease and you can see yourself going back to work elsewhere after a while of rest. This is also called situational disability: the illness is caused by the circumstances at your employer. If you want to get rid of the unpleasant situation and decide to resign during your illness, the UWV will not give you unemployment benefits because you have culpably become unemployed. For this reason, it is not wise to leave your employer yourself if you are ill. In circumstances of situational incapacity for work, it may be wise to part ways with a settlement agreement in the event of illness. The UWV will, if this is properly recorded in the settlement agreement, give you an unemployment benefit.
Sick out of service
As you have read before, it is not easy to leave work while sick. In principle, your employer cannot fire you and if you leave yourself, you are no longer entitled to benefits from the UWV. In such a situation, you could do the following:
Repairing the relationship with your employer
This is the best solution if you think you can still reach an agreement with your employer. A mediation process is often started. A mediator is a neutral third party who helps to resolve the conflict. The mediator’s costs are usually borne by the employer.
Breaking up through the courts
The case can also be submitted to the court for a decision. The court will then assess whether the employment relationship has been disrupted to such an extent that dismissal is the only solution. This is often not an interesting option for either party, because the court will assess who is responsible for the disruption. This entails a great deal of risk and uncertainty for both parties. The party designated as the responsible party runs the risk of having to pay compensation to the other party. Although it occurs much less often, it can also happen that an employee has to pay compensation to an employer. All in all, a risky process for both employer and employee.
Separating by means of a settlement agreement in case of illness
If you are situationally incapacitated for work and you and your employer do not want mediation (or it has not led to results), then it may be a good option to part ways with a settlement agreement. If you agree to the agreement offered by the employer, you proceed to terminate your employment contract by mutual consent. In the settlement agreement, you then arrange all matters regarding your dismissal, such as the amount of your severance pay, the date on which you leave employment, taking your vacation days and all other possible agreements.
It is important that you have recovered sufficiently to be able to start working elsewhere before you go down this path. In order to be entitled to unemployment benefits, you will also have to be able to apply for jobs as soon as your employment contract ends. It is important to seek legal assistance before signing a settlement agreement in the event of illness, in order to safeguard your unemployment benefits and other rights. If you would like to know more about this, you can always contact Brons Legal Dismissal Law without obligation .
To avoid misunderstandings: signing a settlement agreement in the event of illness is therefore not recommended if you expect to be ill for a longer period of time! You can read why below.
Settlement agreement in case of illness and UWV rules
In the Netherlands, employers are required to continue paying the salary of a sick employee during the first two years of illness. If you sign a settlement agreement during illness, this may affect your right to unemployment benefits. The UWV (Employee Insurance Agency) may choose to refuse this benefit, as you are not available for work and cannot apply for jobs during illness. In addition, sickness benefits may be refused, as the employer is responsible for paying the salary during the first two years of illness.
The UWV will assess whether you are culpably unemployed. If this is the case, they will in principle deny you benefits. So if you sign a settlement agreement in the event of illness while you are still ill after leaving employment, your benefits are at risk. It is not only important that you have been reported recovered on paper, you must actually be able to work.
When considering a settlement agreement during illness, it is therefore crucial that you have actually recovered on the last working day and that you do not report sick again during the term of your unemployment benefit.
For more information about resigning during illness and the UWV rules in case of illness: I am just sick | UWV | Private individuals
Settlement agreement and UWV
The UWV will check whether you have indeed been dismissed when you have reported this to them. The UWV will also check whether you are to blame for the dismissal. Only if this is not the case and you are therefore not culpably unemployed, can you claim unemployment benefits after the end of your employment contract. If the UWV rejects the settlement agreement, this may have consequences for your right to unemployment benefits. Therefore, never sign a settlement agreement in the event of illness without consulting an employment lawyer or employment lawyer .
Settlement agreement in case of illness: transition payment
In the settlement agreement, you and your employer can make agreements about the transition payment. Although employees are in principle entitled to the transition payment upon dismissal, the payment of the transition payment can also be excluded by your employer in the settlement agreement. So pay close attention to this and know that there is often room to negotiate the amount of your severance payment. Brons Legal Dismissal Law is happy to help you with this.
Settlement agreement in case of illness: example
Alex is an IT professional and has been employed by a company for over two years on an indefinite contract. He has had a new manager for six months and since then things have not been going well at all. Alex and his manager are two opposites and they are unable to work together in a constructive way. This increasingly leads to escalations because both have different insights into how Alex’s work should be carried out. Alex goes to work with increasing reluctance. After yet another conflict situation, Alex is no longer able to get to work on Monday morning with fresh courage. He literally feels ill due to all the stress and therefore reports sick to work. After several conversations with the company doctor, it is determined that there is a situational incapacity for work: the illness is caused by the situation at work and the clashes with his manager. After a while of rest, Alex would feel perfectly capable of going back to work elsewhere. In such a case of situational incapacity for work, it may be a good idea to separate by means of a settlement agreement. This brings peace of mind to both parties and prevents unpleasant and protracted lawsuits in the future.
Burnout: sign a settlement agreement?
A settlement agreement can also provide a solution in the case of burnout. Employees who are ill for a long period of time as a result of burnout can consider ending the employment relationship in a respectful manner together with their employer. This can be a positive step to enable the employee to recover and focus on their health and well-being. However, do not sign a settlement agreement without further ado; it is important to consider carefully whether you could actually find work elsewhere. If you have doubts about whether you will have a relapse, it may be wise not to agree to your employer’s proposal.
Conclusion
In short, a settlement agreement in case of illness can be an excellent tool for employers and employees in certain situations to get out of a split and part ways. It is important to think about this carefully and not to sign a settlement agreement before seeking legal advice in order to retain your unemployment benefits. In the vast majority of cases, the legal costs are reimbursed by the employer.
Need help with your settlement agreement?
Are you ill and have you received a settlement agreement? The employer often puts pressure on you to sign quickly. It is important for you as an employee to know that you do not have to just agree. Take the time to think about it carefully and hire an employment lawyer or employment lawyer. Brons Legal Dismissal Law can help you to legally assess the settlement agreement as offered to you. You may want to apply for unemployment benefits, so don’t forfeit these rights.
If desired, we can also conduct negotiations for you on the conditions under which you want to sign a settlement agreement. This often brings peace to the process, because it removes the emotion from your dismissal situation. If you do not want to jeopardize the relationship with your employer, our intervention can therefore offer a solution. Our costs are usually reimbursed by your employer. We negotiate, among other things, about:
– the amount of your severance pay or transition payment;
– exemption from work
– expiry of your non-competition clause
– retention of lease car until the end of employment
– payment of unused vacation days
– a positive testimonial.
Knowing more? Contact Brons Legal Dismissal Law without obligation , we will be happy to tell you more.
FAQ Settlement agreement in case of illness
If you are ill and do not want to return to your current job, you can always resign yourself. But usually it is not wise. The UWV will find that you have become culpably unemployed and will refuse you unemployment benefits.
If you resign yourself, you are not entitled to a transition payment. If your employer terminates your employment contract (note: this is only possible in exceptional cases), you are in principle entitled to a transition payment. Are you leaving with a settlement agreement? Then you can make agreements with the employer about the amount of your severance payment.
This is only possible in exceptional circumstances. For example, if your employer goes bankrupt or if you are dismissed on the spot. You can also be dismissed while you are ill and still in your probationary period.
In principle you cannot be fired if you have a burnout. After all, you are ill and you enjoy dismissal protection. Only in certain exceptions may your employer fire you while you have a burnout, but the burnout may never be the cause.
Suppose you are ill and your temporary employment contract ends. You then leave your employer’s service and therefore no longer receive any wages. You do then receive a Sickness Benefits Act benefit from the UWV. Your employer applies for this for you.
You can always leave your job if you are sick, but it is often not wise to resign yourself. You will then not be entitled to unemployment benefits or sickness benefits. In principle, your employer may not fire you if you are sick. Do you still want to part ways? Under certain circumstances, it may be a good idea to part ways by mutual consent.
Can you resign if you are on sick leave?
If you are ill and do not want to return to your current job, you can always resign yourself. But usually it is not wise. The UWV will find that you have become culpably unemployed and will refuse you unemployment benefits.
Are you entitled to a transition payment if you leave employment due to illness?
If you resign yourself, you are not entitled to a transition payment. If your employer terminates your employment contract (note: this is only possible in exceptional cases), you are in principle entitled to a transition payment. Are you leaving with a settlement agreement? Then you can make agreements with the employer about the amount of your severance payment.
Can you be fired if you are sick?
This is only possible in exceptional circumstances. For example, if your employer goes bankrupt or if you are dismissed on the spot. You can also be dismissed while you are ill and still in your probationary period.
Can you be fired after reporting a burnout?
In principle you cannot be fired if you have a burnout. After all, you are ill and you enjoy dismissal protection. Only in certain exceptions may your employer fire you while you have a burnout, but the burnout may never be the cause.
What happens if you leave work sick?
Suppose you are ill and your temporary employment contract ends. You then leave your employer’s service and therefore no longer receive any wages. You do then receive a Sickness Benefits Act benefit from the UWV. Your employer applies for this for you.
Can you leave employment if you are ill?
You can always leave your job if you are sick, but it is often not wise to resign yourself. You will then not be entitled to unemployment benefits or sickness benefits. In principle, your employer may not fire you if you are sick. Do you still want to part ways? Under certain circumstances, it may be a good idea to part ways by mutual consent.
