The position of the old-age pensioner has changed with the introduction of the WWZ (Wet Werk en Zekerheid – Work and Security Act) on 1 July 2015, which means there is little to no employment protection for this employee. Subsequently, on 1 January 2016, the Wet Werken na de AOW-gerechtigde leeftijd (Working beyond AOW entitlement Act) came into effect. This act limits the obligations of the employer in the case of illness of an old-age pensioner.
Right to terminate employment and chain regulation
When an employee reaches retirement age, the employment contract, which was entered into prior to the AOW entitlement age, may be terminated without the intervention of UWV (Employee Insurance Schemes Implementing Body) or the subdistrict court. The chain regulation has also been expanded for employees entitled to old age pension. You may enter into 6 fixed-term employment contracts up to a maximum of 48 months, before an employment contract for an indefinite period of time arises. Normally, it is possible to enter into 3 fixed-term employee contracts for a period of 24 months at the most.
Transition compensation
If the employment contract ends due to reaching the AOW entitlement age or after reaching the AOW entitlement age, the employee will have no right to transition compensation.
Obligation to continue the payment of wages in case of illness and prohibition of termination
The introduction of the Wet Werken na de AOW-gerechtigde (Working beyond AOW entitlement Act) has considerably shortened the obligation to continue the payment of wages in case of the illness of an old-age pensioner. Instead of 104 weeks, an employer merely has to continue paying wages for 13 weeks. The act will be evaluated after 2 years, after which the objective is to further cut back the obligation to continue the payment of wages in case of the illness of an old-age pensioner to 6 weeks. In anticipation, the period of 6 weeks has been incorporated in the act. However, the transitory law stipulates that this will be 13 weeks for the time being. The prohibition of termination in case of illness has also been shortened from 104 to 13 weeks for old-age pensioners. The objective is that the prohibition of termination will also be applicable for the duration of 6 weeks in the future. This means that the employer may terminate the employee contract with an old-age pensioner after 13 (in future 6) weeks.
Obligation of vocational rehabilitation
The obligations for the vocational rehabilitation of an employer in case of illness of an old-age pensioner have been limited too. The employer is not obligated to draw up an action plan. Furthermore, the employer is not bound to vocational rehabilitation in the second track, namely external reintegration at a different employer. The obligation for internal vocational rehabilitation will remain in effect.
Regarding the above-mentioned, it has been made more attractive for an employer to hire an employee who is entitled to old-age pension or to let them work for an extended period of time.
If you have a question about this subject, you can contact our office 0031 10 209 2777 or by e-mail info@lvh-advocaten.nl
