Redundant While on Sick Leave: Rights and Outplacement

Being redundant while on sick leave in the Netherlands means that your position is structurally disappearing or has already disappeared, while you are still partly or fully unfit for work and remain employed. Your employer continues to pay your salary and must support your reintegration, but at the same time there is no long-term place for you in the organisation. This combination raises questions about dismissal protection, UWV procedures and your future career. This article explains the key principles and shows how outplacement can provide perspective.

What does redundancy during sickness mean in Dutch law?

Under Dutch labour law, you are redundant when your position structurally disappears, for example due to reorganisation or economic reasons. This is separate from sickness: redundancy concerns your job, sickness concerns your ability to work. Both situations can exist at the same time and influence each other in practice.

When you are on sick leave and declared redundant, your legal protection against dismissal because of sickness usually remains in place during the first two years. Your employer may announce the reorganisation, select positions that will disappear and classify you as redundant, but generally cannot dismiss you purely because you are ill. This means that reintegration obligations continue, even if your position has no future.

For many employees this creates uncertainty: you are trying to recover and reintegrate, while you know that your old job will not come back. In such cases, combining reintegration with a well-structured outplacement programme can help you move from uncertainty towards a concrete next step.

• Redundancy: your position structurally disappears.
• Sickness: you are partly or fully unfit for work.
• Reintegration: legal process aimed at returning to work.
• Outplacement: guided transition to a new employer.

How do sickness, reintegration and redundancy interact?

The Dutch Gatekeeper Improvement Act imposes reintegration duties on both employer and employee during the first two years of sickness. The company doctor assesses your capacity for work and advises on suitable activities. At the same time, your employer may decide to reorganise and abolish your position, which makes you redundant. Legally, these processes must be aligned.

Dismissal due to sickness is in principle prohibited during the first two years of illness. Dismissal for economic reasons during sickness is only allowed in exceptional cases, such as complete closure of the business. In most situations, the employer will therefore wait with actual dismissal, but can already indicate that there will be no long-term place for you in the organisation.

Reintegration continues regardless. You may temporarily perform suitable work in another role or department, even if everyone knows this will not be a permanent solution. This is often the moment to explore whether an outplacement-oriented approach, focusing on work with another employer, offers more sustainable prospects than aiming for a non-existent job in your current company.

• Reintegration obligations continue, also when you are redundant.
• Dismissal protection during sickness usually remains in force.
• Temporary suitable work may be purely transitional.
• Outplacement can run alongside reintegration when coordinated well.

Employer obligations when an employee is both sick and redundant

Employers in the Netherlands have a double responsibility. They must continue salary payment and reintegration efforts during the first two years of sickness, and they may reorganise if there are economic or organisational reasons. They can declare positions redundant, but must still actively support reintegration, even when it is clear that the old job will not return.

This means that the employer needs to maintain proper contact with the company doctor, draw up and update a reintegration plan and offer suitable work where possible. The Dutch benefits agency UWV later assesses whether the employer has done enough to support reintegration. If not, UWV can impose a wage sanction.

In reorganisations, employers often draw up a social plan. Such a plan may include arrangements for outplacement support for redundant employees, including those on sick leave. For employees, it is important to understand both the reintegration framework and the reorganisation rules, so they can make informed decisions.

• Employer must keep supporting reintegration despite redundancy.
• Reorganisation must follow objective selection rules.
• UWV reviews reintegration efforts afterwards.
• A social plan can include outplacement arrangements.

Employee rights: protection, WIA and dismissal while on sick leave

Employees on sick leave enjoy strong dismissal protection in the Netherlands. During the first two years, an employer may generally not dismiss you because of sickness. After that period, UWV assesses whether you are entitled to a WIA benefit (Work and Income according to Labour Capacity Act), which looks at your remaining earning capacity.

Redundancy does not remove your right to salary continuation and reintegration support during those first two years. It does, however, influence the direction of reintegration. If it is clear that there is no sustainable position for you within the organisation, efforts may shift earlier towards reintegration with another employer, which comes close to an outplacement approach.

Dismissal while on sick leave is only possible in specific situations, for example in case of complete business closure or serious refusal to cooperate with reintegration. Termination by mutual consent through a settlement agreement (vaststellingsovereenkomst) during sickness is legally sensitive and may affect benefit rights. Articles such as those on dismissal while on sick leave and dismissal due to sickness provide additional context on these risks.

• Strong dismissal protection during the first two years of sickness.
• Right to WIA assessment after two years.
• Redundancy does not end salary continuation or reintegration duties.
• Settlement agreements during sickness require extra caution.

How outplacement can support sick and redundant employees

Outplacement is guided support towards new employment with another employer after (impending) dismissal. For employees who are both sick and redundant, outplacement can bridge the gap between reintegration and career transition. Rather than focusing solely on returning to an internal job that will disappear, you work towards a realistic and sustainable next step on the labour market.

An experienced outplacement coach takes into account your medical situation, the advice from the company doctor and the Dutch legal framework. At Care4Careers, programmes are tailored to what is medically responsible. Early stages may focus on self-insight, recovery and understanding your limitations and strengths, while later phases emphasise job search and networking, always aligned with your reintegration plan.

Many employees find it reassuring that someone looks beyond the current organisation and helps them think about their long-term future. Where reintegration aims at returning to work, outplacement aims at finding the right place to return to. In complex situations with sickness and redundancy, that broader perspective is often essential.

• Combines reintegration goals with long-term career planning.
• Respects medical limitations and company doctor’s advice.
• Focuses on sustainable employability rather than a quick fix.
• Aligns with UWV requirements to avoid problems with benefits.

Practical steps for employees who are sick and redundant

If you are on sick leave and declared redundant, several practical steps can help you regain control. First, ask your employer for written confirmation of your redundancy status and for information about the reorganisation, selection criteria and any social plan. Clarity about the process reduces uncertainty.

Next, discuss your situation with the company doctor. Ask for a clear description of your functional limitations and possibilities, and how these translate into suitable work. At the same time, seek HR or legal advice on your position regarding redundancy, sickness, possible future dismissal routes and benefit rights. Background information on being declared redundant and on dismissal can support these conversations.

Finally, explore whether your employer is prepared to finance outplacement or career coaching. Many employers are open to this, especially when there is little internal perspective. A coach can help you build a realistic plan that fits both your health and the labour market, while respecting your reintegration obligations.

• Request written information about redundancy and reorganisation.
• Clarify your medical situation and possibilities with the company doctor.
• Understand your legal position and benefit rights.
• Discuss the option of outplacement or career coaching with your employer.

Aligning outplacement, reintegration and UWV requirements

UWV assesses afterwards whether employer and employee have made sufficient reintegration efforts, for example when applying for WIA or when an employer requests dismissal for economic reasons. If efforts are insufficient, UWV can impose a wage sanction on the employer. Therefore, it is crucial that outplacement activities are integrated into the reintegration plan and are medically justified.

In practice, this means that labour market orientation, career assessments and job search within an outplacement programme must match your functional capacity and the steps recorded in the reintegration plan. In long-term sickness cases with little prospect of returning to the original employer, a trajectory that resembles third-track reintegration or outplacement in a third track is often the most logical route.

When termination by mutual consent through a settlement agreement is considered, the wording of the agreement is important for benefit rights. UWV looks at the reason for termination and at whether you have cooperated reasonably. Knowledge of concepts such as transition payment and settlement agreement, as explained in articles on transition payment and settlement agreements, helps you to make informed choices.

• Ensure that outplacement activities are part of the reintegration plan.
• Coordinate all steps with medical advice and UWV rules.
• Record agreements on sickness, reintegration and support in writing.
• Seek independent advice before signing a settlement agreement.

Conclusion: from uncertainty to a realistic next step

Being redundant while on sick leave is a challenging situation in which legal rules, health issues and career questions meet. Your job disappears, while you are still working on recovery and reintegration. Dutch law offers strong protection during the first two years of sickness, but that does not automatically provide a clear future perspective.

By understanding your rights and obligations, staying in dialogue with your employer and company doctor, and exploring the possibilities of outplacement, you can move from uncertainty towards a realistic next step. Carefully aligning reintegration efforts, outplacement support and UWV requirements is key. This way, both you and your employer can work towards a solution that is legally sound, medically responsible and sustainable for your career.