Sick pay

If you own a company in the Netherlands and one of your employees becomes ill, you are required to pay at least 70% of the wage last earned by this employee for a maximum of two years (Note: this is linked to a maximum daily wage). You are obliged to supplement this amount to the minimum wage in the first year of illness. This statutory minimum wage guarantee does not apply to the second year of illness. This obligation to continue payment of wages in the event of illness is laid down by law in Article 629 of Book 7 of the Dutch Civil Code.

Resumption of work

You must consult with the employee to find ways to facilitate the resumption of work. Within the two-year period, you have the option of temporarily discontinuing payment of wages if the employee does not cooperate sufficiently as regards resuming work. Insufficient cooperation can even serve as grounds for dismissal.

Work and Income (Capacity for Work) Act (WIA)

After two years, the employee may be eligible for a benefit pursuant to the Work and Income (Capacity for Work) Act (Wet werk en inkomen naar arbeidsvermogen, WIA). You can then dissolve the employment contract. The Institute for Employee Benefit Schemes (UWV) assesses whether the employer and the employee have done enough to avoid a benefits claim. If that is not the case, UWV may reclaim the sick pay from the employer.