The Supreme Court has recently decided that the compensation for the transition allowance in the event of the dismissal of ‘sleeping’ employees also applies to ‘semi-sleeping’ employees.
Dormant employment contract
We are referring to what is known as a ‘dormant employment contract’. This applies to employees who are on long-term sick leave and, as a result, are no longer working for their employer. After two years, the employer’s obligation to continue paying the sick employee’s wages ceases (if the employer has not fulfilled all their reintegration obligations during the two-year period, the period of continued salary payment may be extended).
However, if the employer dismisses this employee, the employer is liable to pay the transition allowance. To avoid this, many employers kept these employees, who were unable to work, on their books; but as the employee is no longer working and the employer is no longer paying a salary, this is referred to as a ‘dormant employment relationship’.
Compensation scheme
The legislator considers the existence of these dormant employment contracts to be undesirable. That is why the legislator has introduced the compensation scheme, which we describe in our article Transition allowance for dormant employment contracts lower in 2020.
(Semi-)light sleepers
The Supreme Court has now ruled that this compensation scheme also applies in the event of the termination of employment of (semi-)deep-sleepers and that these employees are therefore also entitled to the transition payment.
‘Deep sleepers’ are employees whose employment contract had already become dormant before 1 July 2015 (the employer’s obligation to continue paying wages ended before 1 July 2015). Semi-inactive employees are those who became unfit for work before 1 July 2015, but whose employment relationship became inactive after 30 June 2015.