WWZ update: bill on transition compensation and sickness

Already shortly after the WWZ came into force, discussion arose about the payment of the transition compensation upon termination of employment after two years of illness.

Meanwhile, a bill is ready under which employees who are long-term sick will remain entitled to a transition allowance, but for which the employer will be compensated.

Now more has become known about this. Thus, we know that under this proposal the employer will be compensated for the (in principle full) cost of the transition fee as of Jan. 1, 2019 . However, the law will also apply retroactively to July 1, 2015 . Thus, employers will still be compensated for transition fees already paid during illness.

The compensation will be financed from the general unemployment fund, for which the employer does face an increase in the uniform premium. How the employment ended is irrelevant according to the bill. Thus, it may also have occurred by mutual agreement. However, the reason must always be the termination or non-continuation of the employment contract due to illness as a result of which the employee is no longer able to perform the stipulated work.

The proposal is now before the House of Representatives. We will of course inform you again when the law is passed (by both the Senate and the House of Representatives).