I – Clarity about the transition compensation in the event of long-term disability

If an employee has been sick for more than 2 years and there is no prospect of recovery within six months, the employer can request a dismissal permit from the UWV. The sick employee is then entitled to a transition payment. On the 1st ofApril 2020 de Regeling Compensatieregeling transitievergoeding becomes effective. With this arrangement, the employer can reclaim the paid transition compensation.

Minister Koolmees has recently given clarity on the points below, Also see: Kamerbrief compensatieregeling transitievergoeding and Factsheet compensatieregeling transitievergoeding.

  1. The maximum of the compensation by the UWV, cannot be higher than the (legally due) transition amount, paid by the employer. The law also maximizes the compensation in a number of other ways. See: Kamerbrief and the Factsheet.
  2. The consequences of the Supreme Court’s ruling on dormant employments
    The Supreme Courthas ruled that the employer must agree to a proposal from the employee to end a dormant employment contract. The employer must therefore agree to pay a transition payment, as it would have been if the employment contract had been terminated after two years of illness. Compensation is also possible for this transition payment.
  3. Transitional provisions in the law will not be adjusted
    This means that if the end of the 104th week of being sick is before the 1st of January 2020, but the procedure for terminating the employment contract starts after the 1st of January 2020, the compensation follows the new calculation.
  4. The UWV’s decision period
    The UWV has a decision period of six months for so-called ‘old cases’. This decision period will apply to all cases of which the waiting period of 104 weeks lies before the 1st of April 2020. Because the waiting time is decisive, the actual payment of the transition compensationon or after the 1st of April 2020, won’t make such a case a ‘new application’. It still will be considered an old case.

II – Social security: what’s about to change in 2020?

  1. Birth leave
    From the 1st of July 2020, partners have a right to an additional five weeks of birth leave. This applies to the first half year following the birth of their new-born. They are then entitled to a benefit of up to 70% of the daily wage paid by the UWV.
  2. Lifelong development
    The SLIM arrangement (=Stimulation arrangement to stimulate Learning and Development in SMEs) starts in March 2020. SME’s can then apply for a subsidy to set up a business school, receive career advice for their employees or to keep the skills of their employees up-to-date. The government has made € 48 million available annually to reach these objectives.
  3. Wet arbeidsmarkt in balans(Wab)
    The Wet arbeidsmarkt in balans (Wab) became effective on the 1st of January 2020. The package of measures that comes with it, reduces the differences between having a regular job and flexible employment. As a result, offering flexible employees a fixed contract will be more attractive to employers. However, the introduction of the Wab entails a lot more changes within the field of flexible employment; rights of dismissal and the unemployment premiums. Also see: Factsheet over de Wab op de Cohesie-website.
  4. Arrangement ‘Regeling onwerkbaar weer (=impossible weather working conditions)’
    On the 1st of January 2020 de Regeling onwerkbaar weer went into operation. The arrangement applies to exceptional natural circumstances (e.g.frost, snow and excessive rainfall) and whenever the other Conditions of the arrangement are also met. After the expiry of a number of waiting days, an employer can then be exempted from the continued payment of wages. The UWV takes up the obligated continued payment of wages.
  5. Job-training coming from practical training and special secondary education
    There will be a follow-up in 2020 to the regulation of guiding young people, coming from practical education or special secondary education (VSO), to their first job. In 2020, € 8.5 million will be made available for this purpose within the budget of Social Affairs and Employment.
  6. Extension of support for the elderly who become unemployed
    De Wet inkomensvoorziening oudere werklozen (IOW) will be extended as of the 1st of January 2020 with an additional four years. Employees from the age of 60 and 4 months who become unemployed or partially disabled for work, will be entitled to the IOW benefit the coming years.
  7. Attachment of part of young adult’s earnings (age 18-20 years)
    The attachment of part of a young adult’s earning (beslagvrije voet); meaning the part a bailiff cannot take possession of, will follow the social security norm of the age group of 21 years and above. This terminates the lower norm early held for this group of young adults.
  8. Assistance to entrepreneurs
    The regulations regarding entrepreneurs with financial problems, who make an appeal to het Besluit bijstandverlening zelfstandigen (Bbz) have been amended on a number of items as from the 1stof January 2020. The regulationshave become simpler, both for recipients and municipalities, responsible for implementing them.