Settlement agreement after two years of illness

After 104 weeks of incapacity for work, termination may be possible, but first check the WIA decision, reintegration, redeployment and the statutory transition payment.

What changes after 104 weeks of illness?

During the first two years of illness, a statutory prohibition on dismissal usually applies and the employer must continue paying wages and support reintegration. After 104 weeks, that protection may end unless, for example, UWV has imposed an extended wage-payment obligation.

Assess the WIA decision, current capacity for work, suitable work and redeployment before agreeing terms for termination.

Have your proposal reviewed

1check the 104-week period, WIA, any extended wage-payment obligation and redeployment

2compare the UWV route, compensation and terms in the settlement agreement

Reviewing a settlement agreement after two years of illness

When can employment end?

The employer may apply to UWV for permission to dismiss because of long-term incapacity for work. The employer and employee may also choose termination by mutual consent through a settlement agreement.

A settlement agreement avoids the UWV dismissal procedure, but must not conceal unresolved questions about reintegration or redeployment. Compare the proposal with your position if the formal procedure were followed.

View the model documents

What should the settlement agreement contain?

Clearly record the reason, termination date, compensation, final payment, accrued holiday hours, pension, legal costs and full and final discharge. Also state what applies if a WIA procedure, objection or partial return to work is ongoing.

Dismissal after long-term incapacity will generally give rise to the statutory transition payment. Under a settlement agreement, the agreed compensation must be stated expressly and correctly.

Use a model only as a starting point

A model helps ensure that no topics are overlooked, but it is not legal advice. The correct wording depends on the WIA outcome, any extended wage-payment obligation, whether the contract is fixed-term or permanent, any partial return to work and the chosen termination date.

Never copy a model without adapting it, and check that all facts correspond with your file.

Main page about illness

More about illness, WIA and your rights

Return to the main page about settlement agreements during illness or read more about WIA, unemployment benefit (WW) and the statutory transition payment.

Model after two years of illness

Settlement agreement in case of illness

Entitlement to the statutory transition payment