Partial dismissal for illness: when are you entitled to compensation?
Since 2020, employers can, under certain conditions, receive compensation from the UWV for transition compensation paid to long-term sick employees. But what if the employment is continued in modified form before the end of the waiting period, or is partially terminated? In a recent ruling, the Central Appeals Council (CRvB) provided more clarity on this issue.
The case study: change of employment in case of long-term disability
In the case before us, an employee had called in sick in November 2017. During her reintegration, she began performing suitable work. As of October 1, 2019, her position was formally changed, but she remained employed by the same employer. As of Nov. 19, 2019, exactly after the two-year period had expired, the employment was substantially reduced from full-time to 0.6 FTE, as the employee received WGA benefits of 42.45% as of that date. In that context, the employer paid a transition fee of over €26,000 and asked the UWV for compensation.
UWV denied application, judge ruled in favor of employer
The UWV refused the compensation because, in their view, it was a termination before the end of the waiting period. The court initially followed this, but on appeal the CRvB ruled otherwise. It stated that the employment had not been terminated on Oct. 1, 2019, but continued in modified form. Dismissal did not occur until November 19, 2019, when the employment was structurally and substantially reduced.
Partial dismissal and the 'Column Decision'
In its judgment, the CRvB refers to the so-called Column decision of the Supreme Court. From this it follows that a partial termination of the employment contract is possible when the working hours are reduced permanently and by at least 20%, for example due to partial disability or illness. In this case, the reduction was from 1.0 to 0.6 FTE. Thus, the conditions for partial termination of employment, and thus the conditions for compensation, were met.
Practical tips for employers
This ruling shows how important it is to be careful with dates and wording in settlement agreements for long-term sick employees. If employment is modified or terminated too early, compensation may be forfeited. So make sure that:
- any changes in employment do not occur until after the waiting period
- the magnitude of the change is substantial and structural
- it is clearly established that there is reassignment or adjustment, and not complete termination
Conclusion
The CRvB ruling provides clear guidance for situations where a long-term sick employee is partially reinstated or dismissed after two years. For employers, it is very important to keep the right order and timing when modifying employment and partial dismissal in case of illness. This is because a modification or termination before the expiration of the waiting period results in the loss of the right to compensation for the transition allowance. Only when there is a structural and substantial reduction in employment after that period can compensation be claimed. Therefore, make sure agreements are clearly recorded, with correct dating, and check whether the moment of change is legally correct. Legal and administrative diligence prevents unnecessary costs, lengthy procedures and missing out on the financial compensation from the UWV to which you are entitled.
This blog was written by mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and supports entrepreneurs and employees on a daily basis with a variety of employment law issues. From dismissal cases to drafting watertight contracts and regulations - with his practical and personal approach, he helps employers and employees move forward. Want to know more? Visit Stijn's page.
Arbeidsadvocaat.nl is happy to think with you if you have questions about partial sick leave dismissal. Please feel free to contact us .
April 2025
