The American completely damaged the rear and front wing of his Williams, as it burst into flames after colliding with the barrier and careering back onto the track.
Whilst Sargeant was thankfully unhurt, he was unable to compete in qualifying with the team unable to repair the damage in time.
Williams introduced a significant aero upgrade to the Dutch GP, but their new floor was deemed to be illegal, meaning Albon will face a start from the back of the grid.
Lewis Hamilton has also been penalised and will take a three-place grid drop after impeding Sergio Perez in qualifying.
The FIA have now also announced that Haas star Kevin Magnussen will start the Dutch GP from the pit-lane.
Magnussen is on his third Energy Store (ES) and Control Electronics (CE), exceeding the allotted allowance for these Power Unit components.
These parts were also replaced without the approval of the Technical Delegate, a breach of Article 40.3, and therefore he will be required to start from the pit-lane.