Requesting compensation for transition compensation from UWV can be done before April 1, 2020

With all the developments surrounding the coronavirus, we would almost forget that previously announced measures are also making their appearance. For example, since April 1, 2020, employers can apply to the UWV for compensation in the event of dismissal due to long-term illness. Resolu will be happy to tell you how it's done!

The Compensation Scheme for Transition Compensation in a nutshell

If your employee has been sick for more than 2 years and the RIV test (review of the reintegration report) shows that the reintegration obligations have been sufficient, you as an employer may terminate the employment contract. The sick employee is then entitled to a transition payment. Many employers find this an unjust situation: for two years they are obliged to continue to pay wages and incur costs for the reintegration of the employee, and then the transition fee is added to that.

Since April 1, 2020, an employer, who has paid a (transition) compensation after termination of the employment contract in connection with long-term disability of the employee, can submit a request for compensation to the UWV. The Transition Compensation Scheme allows the employer to recover the transition compensation paid. In this way, the central government prevents employers from being faced with an accumulation of costs after 2 years of continuing to pay wages to sick employees. In addition, the regulation prevents employees from remaining in uncertainty for a long time. Because of the costs of the transition compensation, employers often do not terminate employment after 2 years of illness.

Employers who paid the compensation on or after July 1, 2015, but before April 1, 2020, must have applied for the compensation by September 30, 2020. After that application, UWV will decide within six months whether the employer will actually receive the compensation. To qualify for the compensation, the following conditions apply:

The employee was fired for long-term illness;
Under the law, the employee was entitled to transition pay;
The employee paid the transition fee to the employee.

Incidentally, these conditions also apply to the employee who receives an early IVA benefit and meets the above 3 conditions. In that case, too, the employer can receive compensation for the transition allowance paid.

How high is the compensation?

The compensation is usually less than the severance pay paid.
Employer and employee may agree on a lower severance pay than stated by law. In that case, the compensation is not higher than the transition compensation agreed upon by employee and employer.
Each year, a statutory maximum amount is set for transition compensation. 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 (wage sanction) will not be reimbursed.
When compensating for the transition compensation paid, Statutory Interest and Employer Premiums are not reimbursed.

What documents are needed to apply for compensation?

The employment contract.
Proof of end of employment contract.
Calculation of the amount of severance pay and paychecks.
Proof that the full severance pay was paid and on what date.
The form "Application for compensation transitievergoeding" via UWV employer portal.

What happens after the application?

Employer receives confirmation of application.
Sometimes the employer receives a letter requesting more information.
Ultimately, the employer receives the decision on the application.
This letter states the amount of compensation and how the amount is calculated. The employer will then receive the amount within 5 business days to the account number the employer entered in the application.

Can the decision be appealed?

Yes, this can be done digitally by filling out an objection form or by letter.