Dismissal After 2 Years of Sick Leave in the Netherlands

After 104 weeks of sickness, your Dutch employment contract does not end automatically. Your employer may seek UWV permission to dismiss you only if the required conditions are met, including an unfavourable 26-week recovery prognosis and the absence of suitable adjusted or alternative work. The parties may instead end the contract through a settlement agreement, but your WIA position, reintegration file, transition payment, notice period and any immigration consequences should be checked before anything is signed.

Attorney (Av.) Derya Yurteri Çetin, founder of DYC Legal Consultancy, advises international clients through the Netherlands practice on Dutch employment and immigration matters, including long-term sickness, employment termination, settlement agreements and residence-related consequences of job loss.

Key Rules:

• An employer generally pays at least 70% of salary for up to 104 weeks.
• The employer normally cannot dismiss an employee because of sickness during those first 104 weeks.
• The dismissal prohibition may last longer if UWV imposes a wage-payment sanction.
• After 104 weeks, the contract remains in place until it is lawfully terminated.
• UWV dismissal requires more than proof that the employee has been sick for two years.
• A settlement agreement while sick should never be signed without checking the income and benefit consequences.
• Transition payment and severance terms must be calculated and documented correctly.

This guide focuses on employees who are approaching or have passed the 104-week point. For a broader explanation of reporting sick, salary, medical privacy and the company doctor, see our guide to Dutch sick leave law, salary and reintegration obligations.

What Happens After 104 Weeks of Sick Leave?

The end of the 104-week period is an important legal moment, but it is not an automatic dismissal date.

The employer’s ordinary statutory obligation to continue paying sick pay will usually end. However, the employment contract continues until it is lawfully terminated, expires under a fixed-term arrangement or is ended by mutual agreement.

At the same time, the employee may be going through a WIA assessment. The end of sick pay, the WIA decision and termination of the employment contract are connected, but they are not the same process.

Your employment contract does not end automatically

Receiving a WIA decision does not itself terminate the employment contract.

Similarly, the fact that the employer’s ordinary wage-payment obligation has ended does not mean the employee has automatically been dismissed. The employer must still use a legally valid termination route.

The most common routes after long-term sickness are:

• An UWV dismissal procedure
• A written settlement agreement or vaststellingsovereenkomst
• Continued employment, including adjusted or part-time work
• A sleeping employment contract

When does the wage-payment obligation normally end?

An employer generally pays at least 70% of the employee’s normal wages for a maximum of two years.

During the first sickness year, the employer generally has to supplement the payment to the applicable minimum wage if 70% would fall below it. During the second year, the statutory minimum-wage supplement does not apply in the same way. The employment contract or applicable CAO may provide better rights.

After 104 weeks, the ordinary sick-pay obligation normally ends. This does not apply where an UWV wage-payment sanction has extended the period or where the parties have formally agreed to continue salary payment and reintegration.

If the employee is still performing work, payment for the work actually performed must also be assessed separately.

When can protection continue beyond 104 weeks?

The 104-week period can effectively last longer.

The most important example is an UWV loonsanctie, or wage-payment sanction. If UWV concludes that the employer did not do enough to support reintegration, the employer may have to continue paying wages for up to one additional year and cannot dismiss the employee during that extended period.

The dismissal prohibition can also be extended when the employee submits the WIA application late. UWV states that the extension can correspond to the number of days by which the application was delayed.

The precise first sickness date, any interruptions in the sickness period and all UWV correspondence should therefore be checked before accepting the employer’s proposed termination date.

When Can UWV Permit Dismissal After Two Years?

Two years of sickness alone is not enough for dismissal.

The employer generally has to establish that:

• The employee cannot perform the agreed work because of sickness or disability
• Sufficient recovery for that work is not expected within 26 weeks
• The original position cannot reasonably be adapted within that period
• There is no other suitable position within the company or relevant company group
• Reasonable training would not make redeployment possible
• The dismissal prohibition has ended
• The employer has sufficiently fulfilled its reintegration obligations

UWV lists the 26-week assessment, adjusted work, suitable redeployment and the end of the dismissal prohibition as central conditions.

The 26-week recovery assessment

The employer must address whether the employee is likely to recover sufficiently to return to the original position within 26 weeks.

The assessment is not limited to whether the employee can perform every original duty immediately. UWV also considers whether the work could be adapted.

Possible adjustments may include:

• Fewer or different duties
• Reduced or gradually increasing hours
• A modified schedule
• Workplace adjustments
• Removal of physically or psychologically unsuitable tasks
• A temporary or permanent change in responsibilities

A general statement that the employee remains sick is not enough. The employer must support the dismissal application with current information about the employee’s work capacity and the prospects for return.

Suitable work elsewhere in the organisation

The employer must also investigate whether another suitable position exists.

This can include vacancies or realistic positions:

• In another team or department
• At another location
• Elsewhere within the employer’s group of companies
• That would become suitable following reasonable training
• That the employee has already performed successfully during reintegration

The assessment is particularly important where the employee can still work part-time or can perform less demanding duties.

An employer should not reject redeployment merely because the employee cannot return to the exact original position.

Reintegration obligations and loonsanctie

During the first two years, the employer and employee must cooperate with reintegration.

The employer is generally expected to maintain a reintegration record covering matters such as:

• The problem analysis
• The plan of action
• Progress evaluations
• Adjusted-work investigations
• First-track reintegration
• Second-track reintegration where appropriate
• Company-doctor recommendations
• The final evaluation

The employee must cooperate, attend appropriate appointments, follow reasonable agreements and accept suitable work within their medical capabilities.

Possible employer deficiencies include:

• Failing to investigate adjusted work
• Ignoring suitable internal vacancies
• Starting second track too late without a proper reason
• Failing to follow the company doctor’s recommendations
• Leaving long periods without meaningful reintegration activity
• Maintaining an incomplete or contradictory reintegration file

Not every mistake automatically results in a wage-payment sanction. UWV assesses the complete process and whether the employer had a satisfactory reason for the approach taken.

How Does the UWV Dismissal Procedure Work?

The employer can normally submit the dismissal application from three weeks before the expected end of the dismissal prohibition.

The procedure usually follows these stages:

Stage	What normally happens
Employer application	The employer submits the dismissal request and supporting documents
Employee response	The employee receives the application and normally has two weeks to respond
Further exchange	UWV may allow the employer to reply and the employee to respond again
UWV decision	UWV grants or refuses dismissal permission
Written termination	If permission is granted, the employer must normally give written notice within four weeks
Notice period	The applicable notice period is then observed
Court action	The employee may challenge the dismissal in court within the applicable deadline

The employee’s two-week response period

UWV sends the employee a copy of the application and its attachments.

An employee who disagrees with the request normally has two weeks to submit a defence. UWV may then invite a response from the employer and allow the employee to comment again.

The defence should address the actual dismissal conditions rather than only stating that the employee disagrees.

Relevant questions include:

• Is the 26-week prognosis current and properly supported?
• Could the original position be adapted?
• Were suitable roles fully investigated?
• Were group-company vacancies considered?
• Was reasonable training considered?
• Is the reintegration record complete?
• Should a wage-payment sanction still apply?
• Has the employer used the correct end date for the dismissal prohibition?
• Is the employee already performing sustainable suitable work?

The deadline in the UWV letter should always be treated as controlling. Do not rely only on a general two-week calculation.

What happens after UWV grants permission?

If UWV grants dismissal permission, the employment contract still does not end immediately.

UWV states that the employer must normally terminate the agreement in writing within four weeks. The applicable notice period then starts.

The correct end date may depend on:

• The statutory or contractual notice period
• The duration of the UWV procedure
• The employee’s length of service
• The wording of the employment contract
• Any applicable CAO
• Whether at least the required minimum notice remains

The final transition payment and outstanding employment entitlements should be calculated using the actual end date.

Can the employee challenge the dismissal?

UWV does not provide an ordinary administrative-objection procedure against its dismissal decision.

An employee may instead ask the court to review the dismissal. UWV states that this must normally be done within two months after the employment contract ends.

This is a strict legal deadline. The exact remedy and filing date should be assessed immediately after receiving the termination letter.

UWV also notes that an employer may sometimes have to offer the former position again if a relevant vacancy arises within 26 weeks. Whether this obligation applies depends on the circumstances.

WIA and Dismissal After Long-Term Sickness

WIA is the Dutch work-capacity benefit system for employees who remain wholly or partly unable to earn their former income after long-term sickness.

WIA and employment termination often happen around the same time, but one does not automatically determine the other.

WIA application around week 88

UWV normally sends the employee a WIA application letter in the 88th week of sickness.

The employee then has six weeks to submit the application. The final date appears in the UWV letter and commonly falls around week 93. A late application can create an income gap.

The application usually requires the reintegration report. The employee should receive copies of the joint reintegration documents from the employer, while medical documents are handled separately.

Does the employer have to wait for the WIA decision?

Not always.

UWV has stated that an employer does not necessarily need the final WIA decision before applying for dismissal based on long-term incapacity. The employer may apply once the ordinary wage-payment obligation and dismissal prohibition have ended, provided the required dismissal evidence is available.

Therefore, a pending WIA decision does not by itself make the dismissal application invalid.

The employee should instead review whether:

• The 104-week period has properly ended
• A wage-payment sanction applies
• The employer has current medical-functional information
• The 26-week prognosis is supported
• Adjusted and alternative work were properly investigated

What if UWV’s WIA decision is delayed?

A delayed WIA decision may create uncertainty about income.

UWV indicates that it may contact the employee about a possible advance where it cannot issue the WIA decision on time. The employee should confirm this directly with UWV rather than assuming that salary or benefits will automatically continue.

WIA and dismissal are separate decisions

A WIA award does not automatically terminate the employment contract.

Equally, the absence of a WIA award does not automatically mean that the employer must continue the original employment unchanged.

For example, an employee may be assessed as less than 35% occupationally disabled for WIA purposes but still be unable to perform the original role. The employer must still satisfy the employment-law dismissal conditions, including the investigation of adjusted and suitable work.

UWV Dismissal or a Settlement Agreement?

Instead of applying to UWV, the employer may propose a settlement agreement.

A settlement agreement is called a vaststellingsovereenkomst, commonly abbreviated to VSO. It ends the employment relationship by mutual consent.

For a broader explanation of the clauses used in these agreements, see our guide to settlement agreements in the Netherlands.

Issue	UWV dismissal	Settlement agreement
Employee consent	Not required	Required
Independent UWV assessment	Yes	No
Review of suitable work	Part of employer’s case	Depends on negotiation
Reintegration record	Usually central	May not be independently reviewed
Compensation	Statutory transition payment generally applies	Severance must be expressly agreed
Notice period	Applies after written termination	Must be reflected in the agreed end date
Reflection period	Not applicable	Normally 14 days
Negotiation flexibility	Limited	Greater
Benefit risk	Depends on final sickness and benefit position	Requires careful drafting and timing

Do you have to sign a VSO?

No.

A settlement agreement is voluntary. If the employee does not accept the proposal, the employee remains employed unless the employer uses another valid dismissal procedure. Official guidance confirms that the employee does not have to agree.

Statements such as “this is standard,” “there is no alternative” or “UWV will approve it anyway” should not replace an independent assessment.

The strength of the employer’s UWV case affects the employee’s negotiating position.

Why signing before 104 weeks is particularly risky

Signing a VSO before the end of the protected sickness period can create serious financial risks.

The agreement may end:

• The employer’s remaining salary obligation
• The employer’s reintegration responsibility
• Protection that would otherwise continue until week 104
• The employee’s practical route into WIA

UWV warns that a sick employee who agrees to termination may not qualify for the expected benefit and should obtain legal advice before accepting dismissal.

A proposal made in week 80, 90 or 100 should therefore not be assessed only by comparing the offered severance with the employee’s monthly salary. The value of the remaining salary protection, reintegration rights and benefit risks must also be considered.

What should be checked in a VSO after two years?

Even after the 104-week period has properly ended, the agreement should be reviewed carefully.

Important clauses include:

Employer initiative
The agreement should accurately state that the employer proposed termination.

Reason for termination
The text should not suggest misconduct, voluntary resignation or unjustified refusal to work.

End date
The correct 104-week date, any UWV sanction and the notice period must be reflected.

Severance payment
The proposed amount should be compared with the statutory transition-payment benchmark and the strength of the employer’s UWV case.

WIA and other benefits
The agreement should not promise or assume that UWV will grant a specific benefit.

Unused holidays and holiday allowance
These should be dealt with separately in the final settlement.

Legal-cost contribution
Many employers are willing to contribute to the cost of reviewing the agreement.

Final discharge
A broad finale kwijting clause can prevent future claims concerning wages, holidays, bonus, pension, expenses, compensation or reintegration.

Restrictive clauses
Non-compete, non-solicitation, confidentiality and repayment clauses should be reviewed.

Immigration status
The end date may also determine when an employer reports termination to the IND.

Notice period and reflection period

A VSO should respect the applicable notice period. If the agreed end date is too early, there may be a period during which WW is not payable because UWV applies a fictitious notice period.

After signing, the employee normally has 14 days to cancel the agreement in writing.

If the agreement does not mention the statutory reflection period, it is generally extended to 21 days. The employee cannot validly agree to a shorter period.

The reflection period should not be treated as a substitute for obtaining advice before signing.

Transition Payment After Two Years of Sickness

An employee dismissed at the employer’s initiative is generally entitled to a statutory transition payment, known in Dutch as the transitievergoeding.

Sickness does not remove this entitlement. Official guidance confirms that the entire employment period counts, including the period during which the employee was sick.

How is the transition payment calculated?

The basic calculation is:

• One-third of a gross monthly salary for each full year of employment
• A proportionate amount for the remaining part of the employment period

The gross monthly salary can include relevant fixed and variable wage components, depending on the circumstances.

The calculation should use:

• The correct employment start date
• The actual termination date
• Contractual working hours
• Holiday allowance
• Fixed allowances
• Applicable bonuses or variable remuneration
• Any permanent change in hours

Does reduced sick pay lower the calculation?

Not automatically.

Official Business.gov.nl guidance states that the contractual gross wage applies when calculating the transition payment for a sick employee, even where the employee received lower wages during illness or leave.

For example, an employee who received 70% sick pay should not assume that the transition payment must also be based on only 70% of the contractual wage.

The employment contract, payslips and regular wage components should be reviewed.

Transition payment versus VSO severance

A distinction must be made between:

• Employer-initiated statutory dismissal
• Mutual termination through a VSO

Following an employer-initiated UWV dismissal, the statutory transition payment generally applies.

In a mutual-termination agreement, the parties expressly agree a severance payment. Official guidance distinguishes this negotiated severance from the statutory transition payment.

The employee should therefore compare the VSO proposal with:

• The estimated statutory transition payment
• Remaining salary rights
• The strength of the employer’s dismissal case
• Notice-period treatment
• Unused holidays
• Bonus or commission rights
• Legal costs
• Restrictive clauses being waived or retained

For a more detailed explanation, read how the Dutch transition payment is calculated.

The 2026 maximum

As of 1 January 2026, the statutory maximum transition payment is €102,000 gross. If the employee’s gross annual salary is higher than €102,000, the maximum is one gross annual salary.

This amount changes over time and must be checked against the latest official rules before a calculation is finalised.

Can the employer obtain compensation?

As of 16 July 2026, employers can still apply to UWV for compensation of a transition payment paid following dismissal for long-term sickness, subject to the applicable conditions. The restriction that had been planned for 1 July 2026 did not enter into force on that date.

The Dutch government announced a proposal intended to abolish the compensation scheme from 1 January 2027. Because this concerns future legislation, its enacted status should be checked again before relying on it.

The employer’s ability to obtain government compensation does not remove the employee’s existing entitlement to the correct payment.

What Is a Sleeping Employment Contract?

A sleeping employment contract, or slapend dienstverband, generally exists where:

• The employee has been sick for more than two years
• The ordinary wage-payment obligation has ended
• The employment contract has not been terminated
• The employee is no longer actively working

The contract continues to exist even though the employee may no longer receive ordinary sick pay.

Can the employee request termination?

In the 2019 Xella decision, the Dutch Supreme Court held that an employer should generally cooperate with a reasonable proposal from a long-term incapacitated employee to end a sleeping employment contract with payment corresponding to the statutory transition payment.

The Court found that an employer should not keep the contract dormant merely to avoid paying the transition payment.

When can the employer refuse?

The employer may have a legitimate reason to keep the employment relationship in place.

The Supreme Court gave a genuine prospect of reintegration as an example.

Other issues may include:

• The employee’s current work capacity
• Available suitable positions
• A realistic return-to-work plan
• The timing of the employee’s request
• Changes to the transition-payment compensation scheme
• The exact date on which the employer could first have terminated

Because future changes to employer compensation may affect the practical legal analysis, dormant-contract cases should be reviewed under the rules applying at the time of the request.

What If You Can Still Work Part-Time?

Long-term sickness does not always mean complete incapacity.

An employee may still be able to:

• Work fewer hours
• Perform adjusted duties
• Work in another position
• Avoid certain physical or psychological tasks
• Work with a gradual schedule
• Continue in a role already tested during reintegration

UWV requires the employer to consider adjusted work and suitable alternative positions before seeking full dismissal.

Example

An employee can no longer perform a full-time managerial position but has successfully worked 20 hours per week in a planning role for six months.

If the employer applies for complete dismissal without properly investigating whether that work can continue, the employee may be able to challenge the employer’s redeployment case.

A permanent and substantial reduction in contractual working hours may also raise a separate question about partial termination and partial transition payment. That issue depends on the precise contractual change and should be assessed separately.

Additional Risks for Expats and Highly Skilled Migrants

Employment termination can create both an employment-law problem and an immigration-law problem.

A highly skilled migrant permit generally depends on an employment relationship with an IND-recognised sponsor and compliance with the applicable conditions.

Recognised sponsors have an obligation to report relevant changes to the IND, generally within the applicable reporting period. IND states that changes affecting a residence permit must normally be reported within four weeks.

Employees should check:

• The official contractual termination date
• When the employer will report the termination
• How long the residence permit remains valid
• Which search period currently applies
• Whether a new employer must be an IND-recognised sponsor
• Whether another residence purpose is available
• Whether the agreement affects sponsorship before the end date

Do not assume that the signature date, last working day, garden-leave date and formal termination date have the same immigration effect.

For more detail, read about the highly skilled migrant search period after job loss and check the current IND highly skilled migrant rules.

Current IND time periods, income thresholds and sponsor rules must always be checked against the latest official information.

Practical Examples

Example 1: The WIA decision is delayed

An employee reaches week 104, but UWV has not yet issued the final WIA decision. The employer submits a dismissal application.

The employee cannot successfully oppose dismissal only by saying that the WIA decision is still pending. The employee should instead review the 26-week prognosis, adjusted work, suitable positions and reintegration record.

Example 2: A VSO is offered in week 96

The employer offers three months’ salary if the employee agrees to terminate immediately.

The proposal cannot be assessed solely by looking at the severance amount. The employee may still have salary protection until week 104 and may create WIA, WW or Ziektewet risks by agreeing to early termination.

Example 3: A suitable internal role was ignored

The employee cannot return to the original position but has the experience and medical capacity for another vacant role.

If the employer did not genuinely investigate that vacancy or reasonable training, the UWV redeployment condition may not have been satisfied.

Example 4: The employer leaves the contract dormant

The 104-week period has ended, the employee receives no ordinary salary and the employer refuses to terminate the contract.

The employee may be able to propose termination with payment corresponding to the transition payment. The employer must have a legitimate reason if it refuses, such as a genuine prospect of reintegration.

Employee Checklist Before Agreeing to Dismissal

Collect the following before responding to UWV or signing a VSO:

Document or information	Why it matters
First official sickness date	Determines the expected end of the 104-week period
Employment contract	Shows notice period, salary and restrictive clauses
Applicable CAO	May provide better salary or termination rights
Recent payslips	Needed for compensation and final-payment calculations
Company-doctor reports	Relevant to functional capacity and recovery prognosis
Problem analysis	Part of the reintegration record
Plan of action	Shows agreed reintegration steps
Progress evaluations	Helps identify gaps or delays
First-track documentation	Shows attempts to return within the organisation
Second-track documentation	Shows attempts to find external work
Final reintegration evaluation	Used in the WIA process
WIA application and correspondence	Confirms dates and pending decisions
UWV dismissal application	Contains the employer’s legal and factual case
Proposed VSO	Must be reviewed clause by clause
Holiday balance	Should be addressed in the final settlement
Bonus and pension information	May create additional outstanding claims
Residence permit	Needed to assess immigration consequences
All stated deadlines	Determines when action must be taken

Do not rely only on the employer’s summary. Request the complete application and attachments.

Frequently Asked Questions (FAQs)

DYC Legal Consultancy can assist with:

• Reviewing the employer’s UWV application
• Preparing or assessing the employee’s defence
• Reviewing first-track and second-track reintegration
• Identifying possible gaps in the reintegration file
• Assessing the 26-week prognosis and suitable-work investigation
• Reviewing and negotiating a vaststellingsovereenkomst
• Checking the transition-payment calculation
• Reviewing the notice period and formal termination date
• Checking holiday, bonus, pension and other outstanding payments
• Assessing highly skilled migrant and other residence-permit consequences

For a useful initial assessment, provide:

• Your employment contract and applicable CAO
• Your first sickness date
• The UWV dismissal application or proposed VSO
• WIA correspondence
• Relevant reintegration documents
• Your latest payslip
• Your current residence permit, where applicable
• Every stated response or signature deadline

Contact DYC Legal Consultancy before signing the agreement or allowing an UWV, court or reflection deadline to expire.

Related Articles and Official Sources

Related DYC Legal articles

• Dutch sick leave law, salary and reintegration obligations
• Settlement agreements in the Netherlands
• How the Dutch transition payment is calculated
• Burnout and employee rights in the Netherlands
• Highly skilled migrant search period after job loss
• Garden leave, release from work and non-compete clauses

Official sources

• UWV conditions for dismissal after two years of sickness
• Official WIA application guidance
• Official Dutch sick-pay rules
• Employer reintegration obligations
• Official guidance on settlement agreements
• Official transition-payment calculation
• Current highly skilled migrant rules

Legal notice: This article provides general information about Dutch employment law as reviewed on 16 July 2026. It is not a substitute for advice based on your employment contract, CAO, medical and reintegration file, WIA position, immigration status and individual circumstances. Legal deadlines, annual transition-payment limits, UWV policies and IND rules may change and should always be checked against the latest official information.