With effect from 1 April 2020, employers may apply with the UWV for compensation for the transition allowances they have paid to employees who have been incapacitated for work for more than two years and whose employment contract has been terminated after these two years. This application may also be submitted for employment contracts terminated after two years of incapacity for work on or after 1 July 2015.

The maximum compensation amount is equal to the transition compensation accrued from the start of the employment until the employee has been sick for two years. However, the employee has accrued transition allowance over the period that the employment contract has been/was dormant. That part of the transition allowance is indeed owed by the employer, but is not compensated by the UWV.

The employer may submit the application through the employer portal of the UWV (in Dutch) with effect from 1 April 2020.

More information?

If you would like to know whether you are eligible for this compensation scheme, please contact one of RSM's payroll tax specialists.