A common question is whether an employer may offer a settlement agreement (VSO) during illness. The answer is: yes, that is allowed, but it does entail risks. As a sick employee you are extra vulnerable and there is a chance that you will 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 in case of illness, and what you should pay close attention to before you sign.
May an employer offer a VSO in case of illness?
Yes, an employer may also offer a VSO during illness. But there are strict rules:
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The employee must voluntarily agree.
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The reason for termination may be not culpable.
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The agreements must be recorded in such a way that the UWV does not refuse the unemployment benefit or Sickness Benefits Act.
Dismissal protection in case of illness
During illness, as an employee you benefit from dismissal protection. This means that your employer is in principle not allowed to terminate your employment contract during the first two years of illness or disability - the so-called ban 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 cancellation ban. Your employer can only terminate your contract during illness if you agree to this (for example via a VSO), in the event of summary dismissal, or if the company goes bankrupt or a business unit is divested. In short: a VSO during illness is possible, provided all conditions are met and your rights as an employee are guaranteed.Dismissal during 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 ban on termination in the event of illness does not apply in all situations.- Reorganization: When jobs disappear due to a reorganization or business economic circumstances—and this necessity is well substantiated—an employer can apply to the UWV for permission to also dismiss sick employees. This is allowed, provided that your illness is not the reason, but simply the loss of your position.
- Business closure: Will the company close down (partially) or go bankrupt? Then there is also an exception and an employer may terminate the employment relationship, even if you are ill at the time. In such cases, dismissal cannot be prevented by the ban on termination due to illness.
Is summary dismissal possible during illness?
Yes, summary dismissal is also possible during illness. In exceptional cases, for example in the case of serious misconduct such as theft or fraud, the ban on dismissal 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 always proceed with care, because in the event of an unfair dismissal, the employee can challenge the decision.Risks of a VSO during illness
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Loss of right to wages in the event of illness
Normally, the employer must continue to pay wages for up to 2 years in the event of illness. This can end with a VSO. -
No right to Sickness Benefits Act
If the reason for dismissal is incorrectly formulated, the UWV can refuse your benefit. -
Pressure from employer
Sick employees are more vulnerable and are more likely to feel pressured to sign.
What happens after two years of disability?
Have you been sick for two years? The ban on cancellation in the event of illness will then lapse. In that case, your employer may terminate the employment contract. The employer usually applies for a dismissal permit from the UWV. The employment contract can only be officially terminated if the UWV gives permission. Please note: your right to wages ends after this period, unless the employer is imposed a wage sanction by theUWV because he has not done enough to reintegrate. You may also be able to apply for benefits after dismissal, depending on your situation.Dismissal due to refusal to work during illness
Although you are ill, this does not mean that you should simply follow any instruction from the employer or company doctor can put next to you. If you refuse to cooperate with reintegration without a valid reason, such as trying adapted work or attending interviews, your employer can still dismiss you. The ban on termination in the event of illness does not apply in the event of refusal to work or insufficient cooperation in recovery.When can a VSO be wise in the event of illness?
In some situations, a VSO can be a solution during illness, for example:
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In the case of a long-term disrupted employment relationship, which makes reintegration unfeasible.
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If there is a good compensation that is higher than the transition compensation.
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When you are sure that you have a new job or other income.
👉 Example: An employee was sick at home for 18 months, with no prospect of return. Through a VSO he received a generous allowance and a training budget to learn a new profession.
Practical examples
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Example 1: An employee signed a VSO during illness with the reason “insufficient performance”. The UWV subsequently refused the Sickness Benefits Act.
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Example 2: An employee received a VSO during illness, but the notice period was wrong. He had to wait 2 months longer for his unemployment benefit.
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Example 3: An employee with a burnout received, through negotiations, an additional compensation of € 10,000 in addition to the transition payment to cover recovery and retraining.
Checklist: 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 could cost you your benefits.
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💶 Negotiate a higher compensation (compensation for loss of continued salary payment).
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⚖️ Always have the VSO legally assessed.
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🕑 Remember: you have a statutory cooling-off period of 14 days.
Do you receive a settlement agreement during illness?
Have you received a termination agreement while you are ill? Don't be alarmed—this doesn't have to be a bad thing, but it is important to be critical before you sign something. There is often room to negotiate better conditions and higher severance pay, especially if, for example, you have been home sick for a long time or if there is a disrupted employment relationship. Always have your VSO checked before you agree. This way you can be sure that you will continue to be entitled to unemployment benefits or Sickness Benefits and you will avoid nasty surprises afterwards. A legal specialist can assess within a few hours whether there are areas for improvement and whether you can get more out of your dismissal. It almost always pays to have your proposal 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 faced with redundancy, it is 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 this benefit. Do you want a good estimate quickly? Then use the WW calculation tool from the UWV. Follow these steps:- Enter your most recent salary details.
- Indicate how many years you worked prior to dismissal.
- Follow the remaining short questions.
Frequently asked questions (FAQ)
1. Can my employer fire me while I am sick?
No, normally not. Only through a VSO can dismissal during illness in consultation.
However, there are a few exceptions to the ban on termination during illness. For example, the termination ban does not apply if you agree in writing 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. Am I entitled to unemployment benefits or sickness benefits with a VSO?
Yes, provided the VSO has been drawn up correctly.
3. Do I have to sign a VSO if I am ill?
No, this is always voluntary.
4. Do I receive compensation for dismissal during illness?
Yes, at least the transition payment, often more during negotiations.
How can you calculate the amount of your transition compensation?
Do you want to know what you are entitled to in the event of dismissal? Fortunately, calculating your transition compensation is not rocket science. The amount depends on your gross monthly salary and the number of years you have been employed. This is how it works step by step:- Transition payment per year of service: You will receive 1/3 monthly salary per full year of service.
- So calculate: Multiply your gross monthly salary by 1/3, and that amount times the number of full years of service.
- For partial years: You are also entitled to a pro-rata share for any uncompleted year of service.
5. Can I change my signature afterwards?
Yes, you have a statutory cooling-off period of 14 days.
What questions can you ask a lawyer about dismissal during illness?
Are you dealing with illness and the threat of dismissal? Then it is smart 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 report?
- Am I covered by the ban on cancellation due to illness?
- Am I entitled to a transition payment or even more?
- Can I negotiate an additional fee or favorable terms?
- Do I still have to work during the notice period, or can I be exempted from work?
- What happens with a non-competition or non-solicitation clause in my situation?
Sick leave of employment during your probationary period: what now?
Do you become ill during your probationary period and does your contract end? This is possible, because during the probationary period both you and the employer can terminate immediately, with or without reason – even if you are ill. The ban on termination in case of illness does not apply during this period. What should you pay attention to?- You do not have dismissal protection during the probationary period due to illness.
- If you are reported sick from work, you can usually apply for Sickness Benefits Act directly from the UWV.
- You are not entitled to a transition payment, because the employment contract is less than two years.
- The employer does not have to give a reason for termination during the probationary period.
Common mistakes made by VSO during illness
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Sign too quickly under pressure from the employer
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No neutral reason for dismissal in the agreement
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Do not request compensation in addition to the transition payment
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Do not have a legal check carried out
Why Arslan Lawyers?
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Protect your rights during illness
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Check whether your unemployment benefits or Sickness Benefits Act rights are retained
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Negotiate for higher fees 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 entails additional risks. Never simply sign and always have the agreement checked by an employment lawyer. This is the only way you can be sure that you will not miss out on your wages or benefits and that you will receive fair compensation.