Minister Asscher announces measures that pertain to the obligation to continue to pay salary in the event of illness
For the first 2 years of an employee’s illness, his employer is obliged to continue paying the employee’s salary. In a letter to Parliament of 21 April 2016, Minister Asscher announced a number of measures that aim to ease a few bottlenecks employers experience with regard to the obligation to continue to pay salary. Two of these measures are discussed below:
Measure 1: second-track reintegration a decision of the employer and employee
If, in the first two years of illness, an employer makes insufficient effort to reintegrate the employee, the Employee Insurance Agency (UWV) will impose a salary penalty. This means that the employer’s obligation to continue to pay salary is extended by 1 year. If an employer fails to initiate the process of reintegrating an employee with another employer – the so-called “second track” – or initiate this process too late, this may be cause for such a salary penalty. In practice, employers only initiate a second-track reintegration process in order to prevent a salary penalty. The announced measure makes the decision on whether or not to initiate a second-track reintegration process, and the timing thereof, a decision of the employer and the employee, based on the advice of the company physician. This is then included in the plan of action. UWV only checks whether the reintegration took place in accordance with the plan of action. Failing to initiate the second-track reintegration process, or doing so too early or too late, will no longer lead to a salary penalty being imposed.
Measure 2: Full invalidity benefit paid out earlier
After two years of illness, an employee can apply for a benefit under the Dutch Work and Income (Capacity for Work) Act (WIA). In the event of partial occupational disability, an employee is entitled to a benefit under the Dutch Return to Work (Partially Disabled) Regulations (WGA). If an employee is fully and permanently occupationally disabled, the employee is eligible for a benefit pursuant to the Full Invalidity Benefit Regulations (IVA). If, during the employment, it is already clear that an employee is fully and permanently occupationally disabled, the relevant employee can apply for such a benefit at an earlier stage. Such an early benefit under the Full Invalidity Benefit Regulations can be applied for after 3 weeks of illness, while the payments will start 13 weeks after the first day of illness at the earliest.
Employers cannot submit such an early application and are therefore dependent on the employee. The announced measure means that, in certain circumstances, the employer can apply for such an early IVA benefit as well.
The legal feasibility and the consequences of the announced measures are currently being explored. The legislative proposal is expected to be submitted sometime around the summer. Actually implementing these measures would be a good first step in easing the administrative burden put on employers when an employee becomes ill.
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