Compensation for transition fee Act for long-term incapacitated employees, effective from April 1, 2020.

Since April 1, 2020, employers can submit the long-awaited application for compensation for the transition fee (compensation) paid to employees in connection with long-term disability at the UWV. The scheme compensates the transition fees paid by employers in the aforementioned situation from 1 July 2015.

Conditions for the application
The following conditions apply to the application for compensation:

• The employment contract has been (partially) terminated due to long-term disability, and
• The employee was still ill at the end of the employment, and
• A transition fee (compensation) has been paid to the employee.

Request term

New cases

For new cases from April 1, 2020, the compensation must be requested within 6 months after payment of the full transition payment. The date on which the reimbursement is debited from the employer's account is decisive. If payment has been paid in terms, the application period starts from the date of the last payment.

Old cases

The application for compensation in old cases (these are cases where the employment contract has been terminated and the transition payment has been paid between 1 July 2015 and 1 April 2020) must be submitted to the UWV by 30 September 2020 at the latest. If you do not do this on time, the UWV will reject the request for compensation.

Decision period

New cases

For new cases from 1 April 2020, a decision period of 8 weeks applies after UVW has received the (full) application. That period can be extended, but the UWV must decide within a reasonable period.

Old cases

For old cases, a decision period of 6 months applies after UWV has received the (full) application. This period is longer because there must be made a catch-up.  More time must devoted to assessing old cases for that reason.

How much compensation will be received?
Usually, the compensation to be received will be less than the transition compensation paid to the employee. The following conditions apply:

• The compensation will not exceed the transition compensation agreed by the employee and the employer.
• A statutory maximum amount is set for the transition payment each year. The compensation cannot exceed this maximum amount. Unless the employee's annual salary was higher than this amount.
• Accrued transition compensation over the period of insufficient reintegration efforts (salary penalty) is not reimbursed.
• Statutory interest is not compensated, not even for payments in installments.
• Employer's premiums are not reimbursed.

Need help?

Dutch Legal Experts can assist you in applying for compensation at the UWV. If you need help, please contact us by e-mail at info@dutchlegalexperts.com or by phone on +0031 (0) 6 414 56 113.

April 1, 2020