What is the procedure for dismissal due to incapacity for work?

Termination of employment during long-term sickness is in principle only possible after 104 weeks of incapacity for work, provided the employer can demonstrate sufficient efforts toward reintegration and that no suitable work is available within the organisation, even after reasonable adjustments.

For termination, a dismissal permit from the UWV is required.

What procedure must you follow for dismissal due to incapacity for work?

The dismissal procedure due to long-term incapacity for work starts with an application for a dismissal permit at the UWV. This is typically submitted around weeks 88 to 93 of the sickness period, allowing the assessment to run in parallel with the end of the statutory waiting period.

The application must include a complete reintegration report detailing all efforts undertaken and results achieved within both track 1 and track 2.

The UWV then assesses whether the employer has complied with the Gatekeeper Improvement Act and whether sufficient reintegration efforts have been made.

In general, the procedure follows these steps:

  • Submission of the dismissal application with a complete reintegration report
  • Assessment of reintegration efforts by the UWV
  • Possible request for additional information
  • Decision on dismissal permit and potential wage sanction
  • If approved: termination of employment subject to the notice period

What is the difference between a WIA assessment and dismissal?

A WIA assessment and dismissal are two separate procedures with different objectives, even though they often take place within the same timeframe.

The WIA assessment, carried out by the UWV, determines the degree of work incapacity and entitlement to a disability benefit. It assesses loss of earning capacity. If this loss is 35% or more, the employee may qualify for a WIA benefit.

This assessment is separate from the question of whether employment is terminated.

Dismissal relates solely to the termination of the employment contract. An employee may receive a WIA benefit while remaining employed, or may be dismissed without qualifying for WIA benefits below the 35% threshold.

What reintegration obligations does the employer have?

During the first 104 weeks of incapacity for work, the employer has extensive reintegration obligations. These include both track 1 (reintegration within the organisation) and track 2 (reintegration outside the organisation).

All efforts must be timely, appropriate, and demonstrable.

Within track 1, the employer must explore whether adjustments to duties, workplace, or working hours are possible, in consultation with the company doctor and, where necessary, an occupational expert.

If it becomes clear that return within the organisation is no longer realistic, track 2 must be initiated. In practice, this often occurs around weeks 46 to 52.

A properly executed track 2 programme typically includes a personal profile, job search profile, trajectory plan, and ongoing progress reports.

The quality and timing of these efforts are decisive in the assessment by the UWV.

What are the costs and risks of dismissal after long-term sickness?

Dismissal after long-term incapacity involves significant financial and legal risks.

Direct costs include salary continuation for 104 weeks and any reintegration or external support costs. If reintegration efforts are insufficient, the UWV may impose a wage sanction, extending salary payments by up to 52 additional weeks.

There are also long-term financial consequences. In the case of WGA benefit entry, employers may be financially liable for up to ten years through differentiated premium rates, depending on the insurance structure and benefit level.

Legal risks include potential court proceedings and disputes regarding the quality and diligence of the reintegration process.

What alternatives exist to dismissal?

Termination of employment is not always the only or most appropriate solution. In some cases, alternatives may lead to better outcomes for both employer and employee.

These include job adjustments, internal redeployment, or modifying duties and working hours. In many cases, this allows for partial return to work.

Another option is termination by mutual consent through a settlement agreement. This allows tailored arrangements and may help avoid formal dismissal procedures.

Depending on the situation, alternatives may also include part-time reintegration combined with a WIA benefit, temporary placement in adapted work, or retraining for a different role within the organisation.

How UFIND helps with reintegration and dismissal after illness

We support employers in navigating the complex laws and regulations surrounding long-term illness and dismissal. Our expertise helps you minimize legal risks and achieve the best outcome for both your organization and the employee.

Our approach focuses on preventing problems through:

  • Timely start of high-quality track 2 trajectories
  • Complete documentation according to UWV requirements
  • Customized guidance, tailored to the specific situation
  • Proactive communication with all involved parties
  • Preparation of watertight reintegration reports

Through our experience with both reintegration and employment law, we can advise you on the best strategy for your specific situation. Whether it involves setting up an effective reintegration trajectory or preparing a dismissal procedure, we ensure that you meet all legal obligations.

Contact us for a non-committal conversation about your situation. Together we will look at which approach best fits your organization and the employee involved.

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