Dismissal while on sick leave in the Netherlands

Dismissal while on sick leave means your employment contract ends while you are reported sick and (partly) unfit for work. Dutch labour law offers strong protection in this situation, but dismissal can still occur in specific circumstances, for example after long-term incapacity or by mutual agreement. This article explains the legal framework, typical scenarios and how outplacement and second track reintegration can support a sustainable new start.

Legal framework: protection during the first two years

According to Dutch labour law, an employer may in principle not terminate the employment contract during the first two years of sickness because of that sickness. This is known as the dismissal ban during illness. In this period the employer must continue to pay wages (at least a substantial part) and must actively support your reintegration into work.

Reintegration means working towards a return to work, either in your own job, in adjusted duties or in another suitable position. If that is not realistic within the organisation, a so-called second track (tweede spoor) reintegration process towards another employer can be started. The UWV (the Dutch Employee Insurance Agency) assesses afterwards whether both employer and employee have fulfilled their reintegration obligations sufficiently.

• In general, the dismissal ban applies during the first 104 weeks of sickness.
• The employer must pay wages and organise reintegration activities.
• Dismissal due to sickness itself is usually not allowed in this period.
• The UWV can extend wage payment and the dismissal ban if reintegration efforts were insufficient.

Exceptions and dismissal after two years of sickness

Despite the dismissal ban, there are exceptions. Dismissal is possible, for example, if the company closes down completely or in cases of serious misconduct by the employee. The most common situation, however, is dismissal after two years of sickness because of long-term incapacity for work.

After 104 weeks of sickness, the employer can request permission from the UWV to terminate the contract on the ground of long-term incapacity, provided there is no suitable work available in the organisation anymore. Around the same time, the UWV also assesses whether you are entitled to a WIA benefit (the Dutch disability scheme for long-term incapacity for work).

In many cases, the employee is entitled to a statutory transition payment, meant to support the transition to new work. Employers frequently choose to use part of this budget for an outplacement programme, especially when health limitations and employability require specialised career support.

• After two years of sickness, dismissal for long-term incapacity can be requested at UWV.
• The employer must demonstrate that no suitable job is available anymore.
• A transition payment is usually owed, even in case of long-term sickness.
• Outplacement support can be financed from (part of) the transition payment.

Mutual termination and settlement agreement during sickness

In the Netherlands, employer and employee may end the employment relationship by mutual agreement through a settlement agreement (vaststellingsovereenkomst), also during sickness. This can be an option when both parties see that cooperation no longer works, or when it is clear that returning to the employer is not realistic anymore.

However, such an agreement must be drafted very carefully. The conditions should not harm your right to a WIA or unemployment benefit. Among other things, the reason for termination, the notice period and the date of termination must be aligned with UWV rules. It is strongly recommended to obtain legal advice before signing any agreement.

Often, the settlement agreement also includes arrangements about outplacement. A tailored outplacement programme helps you to explore realistic job options, update your CV and prepare for job interviews, while taking into account your health situation and work capacity.

• Mutual termination is allowed during sickness, but requires careful drafting.
• Your rights to social security benefits must be safeguarded.
• Outplacement can be explicitly included as part of the agreement.
• Independent legal and career advice is highly advisable before signing.

Second track reintegration and the link with outplacement

If returning to your own job or another position within the company is unlikely, the employer must usually start a second track reintegration programme. This process focuses on finding suitable work with another employer. The UWV later assesses whether this second track has been carried out properly.

In practice, second track reintegration and outplacement have many similarities: both aim to help you find new, sustainable work. The main difference is that second track is primarily driven by legal reintegration obligations, while outplacement is often part of dismissal arrangements or a settlement agreement. In more complex cases, they can run in parallel or merge into one integrated trajectory.

Specialists like Care4Careers combine expertise in second track reintegration with outplacement and broader career coaching. This makes it possible to pay attention not only to legal requirements and UWV expectations, but also to your personal goals, health and long-term employability.

• Second track is legally required when return within the company is not realistic.
• Outplacement focuses on a careful transition to new work, often in a dismissal context.
• Combining both can offer a coherent path from sickness to sustainable employment.
• Good coordination with employer, company doctor and UWV is essential.

Outplacement in case of illness: practical support

Outplacement in the context of sickness requires a tailored approach. The starting point is a thorough intake, including an analysis of your health situation, work capacity and career background. Together with your coach, you explore which roles and environments are realistic and meaningful for you.

Typical elements of an outplacement programme in case of sickness include: mapping competences and limitations, building confidence after a difficult period, exploring suitable roles and sectors, and gradually re-entering the labour market in a responsible way. The pace and intensity are matched to your recovery and medical advice.

Additional resources such as outplacement in case of illness and what an outplacement programme costs provide more detail for employees and employers who want to shape this process in a careful, realistic manner.

• Health and work capacity are central in the design of the programme.
• The focus is on sustainable employability, not just on quick job placement.
• Confidence building and clarity about strengths are key components.
• Coordination with medical advice helps prevent relapse.

Key takeaways: dismissal while on sick leave

Dismissal while on sick leave in the Netherlands is only possible under strict conditions. During the first two years, the dismissal ban applies and the focus is on reintegration and wage payment. After that period, dismissal for long-term incapacity can be requested at the UWV, provided the employer has fulfilled all reintegration obligations and no suitable work is available.

Mutual termination through a settlement agreement is possible at any stage, but must be structured carefully to avoid negative consequences for your benefits. Outplacement and second track reintegration offer practical support in finding new, realistic work, taking into account your health and long-term employability. With the right guidance, even a difficult situation like dismissal while on sick leave can become the start of a sustainable new chapter in your career.