Since April 1, employers can reclaim the transition payment they pay to sick employees from the UWV. The scheme also applies to transition payments that were paid before April 1, 2020. So do it, because this is a good way to obtain some additional financial resources during these difficult times.
The four most important questions about this scheme are answered for you below.
1. Who is eligible for compensation?
To be eligible for the compensation, the following conditions must be met:
- The employment contract of the sick employee was terminated due to long-term (longer than two years) incapacity for work on July 1, 2015 or later.
- The employee was still sick when the employment relationship ended.
- A transition payment was paid to the employee.
Notable about the scheme is that civil servants can also fall under the scheme if they have had an employment contract since January 1 and meet the rules mentioned above.
2. How high is the compensation?
For the amount of compensation, the following applies:
- If the transition payment that employee and employer have agreed upon is lower than the statutory transition payment, then the compensation is not higher than what the parties have agreed upon.
- The compensation cannot be higher than the statutory maximum that applies to the transition payment, currently an amount of €83,000 gross.
- The paid employer premiums are not reimbursed.
3. What do I need to apply for the compensation?
When applying for the compensation, the UWV always asks for the following documents:
- The employment contract of the employee to whom a transition payment was paid and the pay slips from which the amount of the paid salary can be derived.
- Proof showing that the employment contract was terminated due to long-term incapacity for work. This could include a settlement agreement, the court’s ruling, or a termination letter.
- The data used to calculate the amount of the transition payment.
- Proof that the full transition payment has been paid and on what date this was done. This can be proven, for example, by bank statements.
4. How long do I have to submit the application?
Employers who want to apply for compensation have limited time to do so. The date of payment of the transition payment determines until when the compensation can be applied for. If the transition payment was paid in full before April 1, 2020, then the compensation application can be made until September 30, 2020. If the transition payment was paid on or after April 1, 2020, then the application must be made within 6 months from the moment of payment.
