Transition payment in case of illness

Are you entitled to a transition payment if you are ill? Even after a period of long-term illness you may be able to claim a payment. Below you can read about your rights as an employee.

transition payment

If an employee has been ill for 2 years, the employer may dismiss them. The employer can do this by means of a ontslagvergunning of met een settlement agreement. In both cases, the employee will be entitled to the transition payment when they leave employment due to illness. Always have the settlement agreement reviewed by an employment law specialist at Arbeidsjurist.

Transition payment after 2 years of illness

After 2 years of illness, the right to a transition payment arises. In 2019, the Supreme Court made it compulsory to end the practice of maintaining an employment contract when a return to the workplace is not possible in the short term. A dormant employment contract is therefore prohibited. The employer must therefore employment contract terminate the employment after 2 years of illness. The employer submits a dismissal application to the UWV for a dismissal permit, or may offer a settlement agreement. In both cases, the employee is entitled to the statutory transition payment after 2 years of illness.

Level of transitional allowance after 2 years of illness

To calculate the amount of the transitional allowance, you will have to calculate the basic salary. To do this, you will take the full salary (i.e. without discount due to illness). You will also have to include the fixed and variable wage components to calculate the full monthly salary. The end date is the date the obligation to continue payment of wages ceases (104 weeks after the first day of illness) when the employee requests the termination and the actual date when the employer requests the dismissal. With our calculation tool, you can calculate your transitional allowance in case of 2 years of illness.

A settlement agreement after 2 years of illness

If the relationship between the parties is good then the choice will be made to conclude a settlement agreement after 2 years of illness. This is many times easier and financially more attractive than applying for a dismissal permit via the UWV. The settlement agreement sets out the agreements. Think about the end date of the employment contract and the amount of the transitional allowance. The alternative is for the employer to ask the UWV to grant a dismissal permit. This will be granted by the UWV after 2 years of illness if all reintegration obligations have been met.

Compensation transitional allowance sick out of service

Indien de werknemer ziek uit dienst a (small) employer can then apply to the UWV for compensation for the transition payment paid. It does not matter whether the dismissal was arranged by means of a permit or with a settlement agreement settlement agreement. The employer may, subject to conditions, reclaim the transition payment paid from the government. The transition payment compensation scheme provides for this. The specialists at Arbeidsjurist Eindhoven are happy to assist with the application for transition payment compensation.

Advice needed settlement agreement due to illness?

If you are an employee leaving sick after 2 years of illness, it is wise to get advice from a specialist. Avoid problems later and get good advice right away. As an employer, you should also pay attention when offering a settlement agreement. Are you planning to enter into a settlement agreement? Please contact an employment law specialist at Arbeidsjurist Eindhoven.

• 
  
  In more than 90% of cases, our help results in better dismissal conditions and higher severance pay.
• 
  
  Expert employment lawyers who get the most out of every case.
• 
  
  Transparent about costs. Often for a fixed fee.

We are happy to think along with you. For advice tailored to your situation, we would be glad to talk. No rights can be derived from the content of this page and it may contain inaccuracies.