Fixed-term contract and sick leave

Your fixed-term contract is expiring and you are ill. Your employer is not renewing. What happens to your income, your reintegration and your rights?

What happens legally when your contract expires

A fixed-term contract ends by operation of law on the agreed end date (art. 7:667 Dutch Civil Code). This also applies if you are ill. The dismissal prohibition during illness does not protect you when a fixed-term contract expires — because that is not a dismissal, but an expiry of the agreed duration.

Until the end date, you are entitled to continued salary payment (art. 7:629 Dutch Civil Code) and your employer must make reintegration efforts. After the end date, your situation shifts to social security: if you are still ill, you will usually qualify for safety-net Sickness Benefits Act (Ziektewet) benefits via UWV.

What you run into

  • No renewal while you are ill
  • Confusion about Sickness Benefits or unemployment benefits
  • Notification too late or not received
  • Employer stops reintegration prematurely
  • Income gap between contract and benefits
  • Unclear which authority is responsible

Your rights when a fixed-term contract expires

1

Salary until the end date

As long as your contract runs, you are entitled to at least 70% of your salary during illness (art. 7:629 Dutch Civil Code), with a minimum of the statutory minimum wage in the first year of illness. Your employer may not stop salary payment before the contract end date.

2

Notification obligation

For a contract of 6 months or longer, the employer must notify you in writing at least 1 month before the end whether they will renew. If they fail to do so, they owe you a notification compensation of up to 1 month's salary — even if you are ill.

3

Safety-net Sickness Benefits

If you are still ill on the end date, you can apply for a Sickness Benefits Act (Ziektewet) payment from UWV. The benefit is 70% of your daily wage. Your employer must report you as ill to UWV no later than the last working day. Check that this has been done.

4

Transition payment

When a fixed-term contract is not renewed, you are entitled to a transition payment: 1/3 monthly salary per year of service. This also applies during illness. Many employees are unaware of this and miss out on their payment.

After your contract: Sickness Benefits, WW or something else?

Still ill on end date → Sickness Benefits Act: you receive 70% of your daily wage via UWV. The Sickness Benefits Act runs for a maximum of 104 weeks (same as with a permanent contract). After that, the WIA assessment follows.

Recovered on end date → unemployment benefits (WW): if you are no longer ill on the end date, you can apply for WW. You must then be available for the labour market and meet the weeks requirement.

Recovered shortly after end date: if you recover shortly after the end date, the Sickness Benefits stop and you can switch to WW. Report your recovery to UWV promptly to avoid delays.

Ill again after recovery: if you become ill again within 4 weeks of recovery, your Sickness Benefits entitlement is in principle revived. This is called the aggregation rule.

Reintegration obligations after contract: even under the Sickness Benefits Act, you have reintegration obligations. UWV takes over the management from your employer. If you do not cooperate, UWV can reduce your benefit.

Where things commonly go wrong

Common mistakes

  • Assuming that illness automatically extends the contract — it does not.
  • Late illness report to UWV after end of contract (employer must do this, but check it).
  • No documents collected before the end date — requesting them afterwards is difficult.
  • Accepting non-renewal due to illness without checking whether it constitutes discrimination.
  • Not claiming the notification compensation when it is owed.
  • Not claiming the transition payment upon non-renewal.

What you can do

  • Request written confirmation of the end date and the reason for non-renewal.
  • Check the notification obligation: was it fulfilled on time and in writing?
  • Collect all relevant documents before the end date.
  • Report yourself to UWV if your employer fails to do so.
  • Claim the transition payment within 3 months of the end of contract.
  • Have the reason for non-renewal legally assessed if you suspect illness is the real reason.

Chain rule and discrimination

Chain rule: the chain rule (art. 7:668a Dutch Civil Code) stipulates that after three consecutive fixed-term contracts, or after 36 months, the next contract automatically becomes a permanent contract. Check whether your situation falls within this rule — you may already have a permanent contract without knowing it. In that case, your employer cannot simply "not renew".

Successive employer rule: did you previously work for the same employer through a temp agency? Those contracts may count towards the chain rule. This too may mean you already have a permanent contract.

Discrimination: non-renewal because of illness may violate the Equal Treatment (Disability or Chronic Illness) Act. The burden of proof is difficult but not impossible. If the employer previously did renew and now suddenly does not — while the only difference is your illness — that is an indication that warrants further investigation.

Financial check

  • Transition payment calculated and claimed
  • Notification compensation checked
  • Final settlement verified (holiday days, holiday pay)
  • Correct benefits route started immediately
  • Appeal deadlines noted

FAQ

Can a fixed-term contract expire during illness?

Yes. A fixed-term contract ends by operation of law on the end date, even if you are ill. The dismissal prohibition during illness does not apply to the expiry of a fixed-term contract — that is not a dismissal but an automatic end.

Do I automatically receive Sickness Benefits?

Not automatically. Your employer must report you as ill to UWV before the end date. UWV then assesses whether you are entitled to a safety-net Sickness Benefits Act payment. Check whether your employer has actually submitted the report and contact UWV yourself if necessary.

Am I entitled to a transition payment?

Yes, if the initiative for non-renewal lies with the employer — and with non-renewal that is virtually always the case. The payment is 1/3 monthly salary per year of service. Claim this within 3 months of the end of your contract.

Can I object to non-renewal?

Against non-renewal itself you cannot in principle object — the employer is not obligated to renew. But if the reason is discriminatory (non-renewal because of illness), you can start proceedings. And if the chain rule has been exceeded, you may already have a permanent contract.

Legal guidance for employees on sick leave

MediRights helps employees who are stuck in an employment conflict due to illness. We guide cases with concrete legal steps.

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