Dormant employments kissed awake?

Last week, the Attorney-at-law-General of the Supreme Court advised our highest court to force employers to terminate dormant employment contracts (after two years of an employee's illness), if the employee requests it (see last Wednesday's blog by Nieske Nijkamp). As a result, the transition compensation must also be paid to those employees.

One of the A-G's arguments for issuing this opinion is that, as of April 1 next year, employers can receive compensation from the UWV for the transitional compensation paid. However, this compensation is subject to rules and also has certain limits. For example, the UWV will never pay more compensation than the amount of the transition compensation at the time the employee has been sick for two years. In many cases the termination takes place much later, as a result of which the transitional compensation is higher. The employer then misses out on a piece of compensation.

Separately, the agreements surrounding the termination must be properly recorded so that it is clear that the conditions for compensation are met. Specific requirements apply to a settlement agreement in particular. It is important to check now whether settlement agreements already concluded or yet to be concluded are 'compensation proof', so that after April 1 you are not confronted with a rejection of the application for compensation! There is still the opportunity to rectify any omissions. We would be happy to advise you on this.

Also read our Nov. 8 update: Supreme Court puts an end to 'dormant employment contracts'