Compensation transition allowance for long-term disabled employee

Ever since the introduction of the WWZ, there has been discussion about the fact that long-term sick employees are also entitled to the payment of a transition allowance upon termination of employment. This feels unfair to many employers. After continuing to pay the employee's salary for at least two years during illness as well as an often (intensive) reintegration process, the employer must pay the transition fee as well. In practice, this led to such employment contracts often being kept 'dormant'.

Date: July 17, 2018

Modified November 14, 2023

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Last week, the Senate passed an important law. Ever since the introduction of the WWZ, there has been discussion about the fact that long-term sick employees are also entitled to the payment of a transition allowance upon termination of employment. This feels unfair to many employers. After continuing to pay the employee's salary for at least two years during illness as well as an often (intensive) reintegration process, the employer must pay the transition fee as well. In practice, this led to such employment contracts being kept "dormant" most of the time. Not a desirable situation, of course: not for the employee and not for the employer.

Compensation Transition Compensation Scheme

The legislature has also taken this to heart, resulting in the Transition Compensation Scheme. Under this regulation, employers can request compensation from the UWV in the event of termination of employment due to long-term disability. This compensation is equal to the statutory transition compensation. The employment contract must also have ended by means of a settlement agreement, termination or dissolution. Even if a fixed-term employment contract ends, is not continued due to the employee's illness and the employer owes the employee the transition fee, a request can be made to the UWV.

The application

The application will likely be submitted electronically, with the employer having to provide various data, such as the employment contract, pay slips and a copy of the settlement agreement, UWV's permission to terminate the employment contract or dissolution order from the subdistrict court.

When

The regulation takes effect April 1, 2020, and applies retroactively to July 1, 2015. So keep good records of which employees you paid compensation to in the aforementioned situations. Then you can request compensation for these employees in April 2020!


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