You have probably already heard something about the coalition agreement that is now on the table. Regarding the labor market plans, I want to highlight one in particular. Because if it goes through, things could suddenly move fast, and before you know it, you’ll be too late. It concerns the “Compensation scheme for the transition payment in the case of a long-term sick employee”. That scheme currently exists for all employers. PVV, NSC, VVD, and BBB intend to limit the scheme to “small employers”, i.e. employers with up to 25 employees.

Do you have more than 25 employees?

Then check the files of all your employees who have been ill for 104 weeks or longer, whose employment has not yet ended.

Because if an employee has been ill for more than 2 years, you as an employer can end the employment with the sick employee through a settlement agreement, or apply for dismissal at the UWV. The sick employee is then entitled to a transition payment. Under the Transition Payment Compensation Scheme, you as an employer can currently still get the transition payment you paid back from the UWV.

Conditions for compensation for long-term sick employees

To qualify for the compensation, the following conditions apply:

• the employee was dismissed due to long-term illness;
• the employee was legally entitled to a transition payment;
• you paid the transition payment to the employee.

Employers must be able to demonstrate these conditions. Think, for example, of:

• the UWV dismissal permit or the court’s dissolution decision;
• the termination or settlement agreement, if it was a dismissal by mutual consent. The termination agreement must show that the employee was dismissed due to long-term illness;
• data used to calculate the amount of the transition payment. For example, documents showing the gross monthly salary and the duration of the employment;
• proof that the (full) transition payment has been paid, for example a bank statement.

You can currently still submit the application for compensation for a long-term sick employee up to 6 months after payment of the transition payment, via the UWV employer portal. The UWV will assess, based on the application, whether you qualify for the compensation, and how much this compensation will be. To calculate the amount of the compensation, the UWV looks at the following:

• the transition payment the employee was entitled to on the day after 104 weeks of illness;
• the period of any extension of the continued-pay period because you received a wage sanction from the UWV does not count toward the calculation;
• the transition payment you paid to the employee.

So make sure you end the employment with the sick employee if this has not already happened. And apply for the compensation from the UWV in good time, before it might be too late. There is a chance that, as a “large” employer, you will no longer get anything back later on, and that would be a shame.

Do you have questions about sick-leave files, or do you have questions or need help regarding how the employment contract with sick employees can be ended? Let us know via info@thelegalcompany.nl or call 020 345 0152. The business lawyers of The Legal Company are happy to help you further!

Nothing changes as constantly as laws and regulations. Please note that our blogs may no longer align with current laws and regulations and may therefore be outdated. If you have questions or an issue relating to this blog, or would like legal assistance, please contact us.