Agreements on continued payment of wages in the event of illness are an important step forward

New agreements ensure that small and medium-sized enterprises no longer have to pay the full payment for two years in the event of long-term illness of an employee. They are relieved through insurance.

These agreements were made between the government, MKB-Nederland, VNO/NCW, LTO Nederland and the Dutch Association of Insurers. This should put an end to the problems that small businesses in particular experience when an employee becomes ill for a long period of time.

Employers will receive a premium discount on social security contributions from the government worth 450 million euros. Insurers will also offer a standard package from 2020. In this so-called SME Care Insurance, insurers will continue to guarantee continued payment of wages in the second year. With such insurance, employers will not be faced with surprises.

The new policy will be offered by various insurers. This should promote market forces. Policies must also meet a minimum standard, be transparent and mutually comparable.

Company doctor leading

From 2021, the advice of the company doctor will be leading in the question of what efforts are needed to get sick employees back to work. Until now, the insurance doctor had the final say.

If the assessment for incapacity for work shows that the employer has not done enough to reintegrate a sick employee, he may receive a wage sanction. This may mean that the employer must continue to pay a third year's salary.

Comments

Jacco Vonhof, chairman of MKB-Nederland, is pleased with the agreements that have now been made, he said. know on the employers' organization's website: "We have always said: it has to be more efficient, with lower costs and fewer risks for small businesses. The measures announced last year in the coalition agreement did not meet that requirement. This package goes a long way in the right direction and offers entrepreneurs choices. You can take out the new insurance, but you don't have to. If you don't, you will still benefit from the legal measures."

Minister Koolmees of Social Affairs and Employment (SZW) is also satisfied: “Together we are taking a big step to tackle a long-standing problem. At the same time, all rights of sick employees remain the same.”

Current arrangement disadvantageous

During the first two years, employers are required to continue paying the salary of a sick employee for the most part. In addition, during this period, the employer must work together with the sick employee to ensure that they return to the workplace as quickly as possible. According to the government, this arrangement ensures that many people return to the work process and do not become incapacitated for work. Smaller employers in particular see this differently and find the obligations regarding continued payment of wages disproportionate. As a result, they say they are handing out fewer permanent contracts.