NederlandsHave you fired an employee because of a long-term illness? Then your sick employee is entitled to a transition payment. But from 1 April 2020, you as an employer can request compensation for this compensation from the UWV.
Transition compensation compensation scheme
Because of the costs of the transition payment, employers often do not terminate employment after two years of illness. With the transition compensation compensation scheme, you as an employer can get your paid transition compensation back. That is nice, especially if you have already had an accumulation of costs due to continued salary payment prior to the dismissal.
How do you arrange your financial windfall?
From 1 April 2020, you can submit an application to the UWV for compensation in the event of dismissal due to long-term illness. This applies retroactively to all transition payments that you paid on or after 1 July 2015.
Of course there are a number of conditions that you as an employer should take into account:
- Employee was fired due to long-term illness.
- The employee was still ill when the contract was terminated.
- The employee was legally entitled to a transition payment.
- You have paid the transition payment to the employee and you have proof of this.
How high is the compensation?
Naturally, the compensation is not higher than the transition payment that you have paid. The amount of the transition payment depends, among other things, on the length of time that the employee has been employed. The wage paid during the 2 years of illness of your employee does not affect the amount of the compensation.
Dormant employments
However, it is possible that an employee who has been ill for more than 2 years is not fired. For example, because you expect the employee to be better in the short term. Or because another suitable function becomes available. The employee will then remain in service, but will no longer receive a salary. In that case, there is no dismissal and the employee does not receive a transition payment.
As an employer, you are obliged to ensure that the employee can return to work by means of reintegration. If suitable work becomes available, you are obliged to make an offer to the sick employee.
Questions about the compensation of the transition payment?
Do you have any questions about the transition compensation compensation scheme? Contact one of our branches in your area.