A topic that regularly leads to heated discussions amongst employers is the issue of continued pay in the event of sickness. The coalition agreement stipulates that the possibilities for adjusting this obligation on employers to continue paying wages are to be investigated. A letter from Minister Aartsen of Work and Participation to the House of Representatives reveals that the minister has commissioned the drafting of six scenarios. Read more here:

What does the current scheme entail?

By law, an employer must continue to pay a sick employee at least 70 per cent of their wages for up to two years, provided the employment contract remains in force. A cap on the maximum daily wage applies. In the first year of sickness, continued pay must be at least 100 per cent of the statutory minimum wage. A collective labour agreement or employment contract may contain more favourable terms, for example that pay is topped up to 100 per cent during the first year of sickness. The employer and employee are jointly responsible for the employee’s return to work.

In practice, it is mainly smaller employers who often face difficulties as a result of this scheme. This could lead to these employers taking on fewer staff and/or offering permanent contracts less frequently.

What are the possible scenarios for the future?

In the annex to the letter to Parliament, Minister Aartsen outlines six possible scenarios:

1. Adjusting the level of continued pay: leaving less scope for supplementary payments in excess of statutory requirements for continued pay during sickness. This should provide a stronger incentive for employees to return to work.
2. Shortening the period of continued pay to one year or one and a half years. However, this would lead to a higher inflow into the WIA, resulting in an increase in collective costs.
3. Collectivising the second year of sickness: establishing a collective scheme for small employers to cover the second year of sickness.
4. Reducing the UWV’s wage penalty for employers from a maximum of 52 to 26 weeks. This ‘rewards’ employers who have not done enough to reintegrate their sick employees.
5. Simplifying the tax assessment application following long-term incapacity for work: no longer requiring a preventive dismissal assessment. The administrative burden on employers and the UWV is reduced, but this comes at the expense of employee protection.
6. Extending the ‘No-risk’ policy to include the ‘second track’ reintegration target group: employers are encouraged to take on employees in the second track immediately.
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You can read the minister’s full letter here: Brief – Scenario’s loondoorbetaling bij ziekte

What next?

We do not expect this to be the final word on the matter for the time being. Employment law is certainly set to continue evolving in the coming years. As soon as there are further developments, we will of course keep you informed. In the meantime, both employers and employees are welcome to contact us with any questions regarding sickness, reintegration and other employment law issues.

mr.dr. Martine van Krieken – Boersma, lawyer