Suppose an employee has been ill for two years and reintegration fails. You say goodbye and pay a transfer fee. Until now, you could have those costs compensated by the UWV. That is likely to change.
There is a bill in the House of Representatives which stipulates that the compensation of the transitional allowance in case of dismissal due to long-term disability only applies to small employers.
In case of dismissal after two years of illness, you are obliged to pay a transition compensation. This amounts to 1/3 gross monthly salary per year of service worked. If you will soon no longer be covered by the scheme, you will pay this compensation in full yourself.
So when are you a small employer according to the bill?
According to the bill, you are a small employer if you have fewer than 25 employees. This will be redefined every calendar year.
In practice, this matches the wage bill. In 2025, the limit is at a total wage bill of up to €990,000. Employers above that will not be considered small employers.
If you exceed that limit, you will no longer be compensated for the transitional allowance in case of dismissal due to long-term disability, according to the bill.
For employees, nothing will change: they will remain entitled to a transitional compensation in case of dismissal or expiry of their contract. For employers, this means that the costs of long-term illness will more often remain with them.
The bill is still being debated in the House and Senate. If passed, the intended effective date is 1 July 2026.