Entering the Dutch Labor market can be both exciting and complex, especially when it comes to understanding employee rights and employer obligations. One crucial aspect that every company should be aware of is the regulations surrounding employee illness. Here’s a breakdown of what you need to know, particularly if you are hiring in the Netherlands for the first time or expanding your operations.
Employer Obligations During Employee Illness
In the Netherlands, employers are legally obliged to provide financial support to employees who fall ill. This includes:
1.Wage Compensation:
- During the first year of illness, you must pay at least 70% of the employee’s regular wages. If this amount falls below the Dutch minimum wage, you are required to supplement it to reach that minimum. It is even common practice to pay a higher percentage of wage in the employee’s first year of illness (normal in the Netherlands is first year 100%).
- In the second year of illness, the obligation remains at 70%, but you do not need to supplement it if it is below the minimum wage.
- For employees unable to work due to organ donation, pregnancy, or giving birth, you must pay 100% of their normal wages.
2.Overtime and Other Benefits:
- You are also required to pay the same percentage of any additional wage components, including overtime, personal allowances, and benefits, that the employee would have normally received.
3.Employee Types Covered:
- These obligations apply to all employees, whether they are on a permanent or fixed-term contract, as well as to on-call workers (both fixed-hour and zero-hour contracts). This inclusivity ensures that all employees receive fair treatment during their illness.
Special Circumstances:
- On-call Employees: If an on-call worker becomes ill while contracted, you must pay them at least 70% of their wages, with a supplement to meet the minimum wage.
- Contract Termination: If an employee’s contract ends while they are on sick leave, your obligation to pay lapses. They can then apply for sickness benefits (Ziektewetuitkering).
- Older Employees: If an employee entitled to an old-age pension (AOW) becomes ill, you must pay at least 70% of their wages for 6 weeks, with supplementation if needed.
- Disabled Employees: For disabled workers, there’s a provision called the no-risk policy. As their employer, you pay their salary while they are sick, and you can apply for sickness benefits through the Employee Insurance Agency (UWV).
Reintegration Efforts:
An essential part of managing employee illness involves reintegration—helping employees return to work. This collaboration entails:
- Consultation: Engage with the employee regarding potential return-to-work options.
- Cooperation: Employees are required to cooperate with reintegration efforts. If they do not, you may suspend wage payments during their illness, and insufficient cooperation could even provide grounds for dismissal.
Transition to WIA Benefits:
After two years of illness, if an employee is still unable to return to work, they may be eligible for benefits under the Work and Income (Capacity for Work) Act (WIA). They can apply for this benefit after 1.5 years, with the possibility of applying earlier if it’s clear they cannot return to work. In such cases, you can deduct the WIA benefit from their wages, as your responsibility for reintegration ceases.
Third parties:
Under the Working Conditions Act in the Netherlands, it is a legal requirement for all employers to have a contract with a health and safety service or a company doctor, commonly known as a basic contract. This ensures that employers are accountable for maintaining a safe and healthy work environment for their staff. When an employee faces a long-term illness, it is the company doctor’s role to assess their condition.
Absenteeism insurance:
Absenteeism insurance (verzuimverzekering) provides coverage for expenses incurred when an employee falls ill. This insurance typically includes payment for the employee’s wages as well as expenses related to reintegration and counseling services.
Changes for 2025:
The Dutch government has made several changes to the regulations surrounding employee illness, including:
- Amendments to the Sickness Benefits Act (Ziektewet): As of January 1, 2025, the Sickness Benefits Act has been amended to include new rules regarding the payment of sickness benefits to employees who are unable to work due to illness or disability.
- Updated Guidelines for Reintegration: The Dutch government has published updated guidelines for reintegration efforts, which include new templates and tools for employers to use when supporting employees in their return to work.
Conclusion:
Navigating the Dutch employee illness regulations can be challenging for international companies. It’s imperative to understand these obligations to ensure compliance and cultivate a supportive work environment. By being informed and prepared, your company can effectively manage employee wellbeing while fulfilling legal requirements.
At Go Ahead HiRe, we’re here to support you every step of the way in your recruitment and hiring efforts in the Netherlands. If you have any questions or need assistance navigating these regulations, don’t hesitate to reach out! http://www.goaheadhire.com/
Source: https://business.gov.nl/ , https://www.papayaglobal.com/
Addition: This information has been sourced and written in 2025
