Sickness settlement agreement
You are ill and your employer wants to terminate the contract. In order to terminate the continuation of your employment contract by mutual consent, he offers you a settlement agreement. But is this permitted by law?
The problem:
In this article, we discuss this tricky situation. What to look out for and what are the pitfalls?
After two years or more of illness, it is possible for your employer to dismiss you in various ways. If your employment is terminated, you are entitled to a transition payment and you are eligible for a benefit such as the Sickness Benefits Act benefit or WW benefit. However, it must be demonstrated that your dismissal is reasonable and that all conditions of the relevant benefit are complied with.
What to do:
After two years of illness, you can choose to part ways through a settlement agreement, also known as mutual agreement dismissal. Together, you and your employer determine the terms you want to agree on. Make sure your rights are at least at least equal to those of a dismissal permit by UWV. The advantage of arranging a settlement agreement after two years of illness is that it is often more favourable and can be arranged more quickly, saving time and energy for all parties involved.
Sickness settlement agreement
When ill, an employee is protected by law for another two years. In most cases, it is therefore advisable to think carefully about whether you want to enter into a settlement agreement. There are pros and cons that need to be weighed carefully. If required, the team at CareerSolution can advise you on what is advisable in this situation. Has your employer already signed you up for a reintegration 2nd track path? Discuss your situation with your reintegration adviser.
To receive WW benefits, it is necessary for you to be active in the labour market and fulfil the obligation to apply for jobs. If you are sick or unfit for work and cannot comply with this, this may result in the UWV rejecting your application for benefit. However, to be eligible for Sickness Benefits Act (ZW) benefits, it is required that you have previously defended your dismissal and merely signing a sickness settlement agreement is not sufficient for this.
Signing a settlement agreement could therefore leave you without income later.
Advantages of sickness settlement agreement
Saying goodbye to your employer early and signing a settlement agreement may be beneficial for you. If your illness is related to circumstances at work and if you are able to work at other employers, it is a situational illness, such as burnout or work-related stress symptoms. Perhaps this is to your advantage?
Perhaps you are no longer eager to go back to your employer and would rather seek a fresh start. If so, entering into a sickness settlement agreement could be an important step in your recovery. A fresh start can mean a lot for your health, but it also offers security and peace of mind; now we know exactly how and when the employment contract will expire.
A big plus of a settlement agreement in case of dismissal is that you have the opportunity to influence the agreements that are made. In situations where a restriction applies, such as long-term illness, this often plays to your advantage.
It is important to bear in mind that you must be able to comply with the job search obligation and be available for work before agreeing to a sickness settlement agreement. To qualify for unemployment benefits, you must report yourself reinstated to the UWV at least 28 days before you leave employment. It is also crucial that the agreement is legally correct and WW-proof.
A settlement agreement during illness is therefore, as mentioned earlier, often a tricky business. Be well informed and, in particular, keep in mind your perspective after your employment ends. For example, do you have the opportunity to get help in acquiring new employment through outplacement? Then this is a great advantage as it significantly increases your chances in the job market.
