A well-crafted Sick Leave Policy Netherlands is not just a legal necessity; it is a strategic guide to navigate the complexities of sick leave management in accordance with the Permanent Incapacity Benefit (Restrictions) Act.

The law sets all sorts of obligations for both the employee and the employer to facilitate as much as possible the speedy recovery of the employee including engaging the services of an Occupational Health & Safety Service provider [Arbodienst].

This article provides an in-depth look at the Dutch Sick Leave Policy, its necessity, the associated risks and issues, legal requirements, and practical steps to implement a Sick Leave Policy.

Terminology Sick leave Netherlands

• Arbo in Dutch is the abbreviated term for the working conditions in the Netherlands.
• Sickness in the Netherlands means as a result of a physical or mental condition an employee is not able to perform or fully perform the work agreed to during the term of employment agreed. (Article 7:629 of the Dutch Civil Code [Burgerlijk Wetboek, BW]).
• Reintegration [reintegratie] in the Netherlands is working towards full recovery (if possible) and is the main objective during the sick leave process.
• The Employee Insurance Agency UWV is an autonomous administrative authority and is commissioned by the Ministry of Social Affairs and Employment. The UWV oversees compliance, and failure to adhere to these steps can result in fines for employers.
• The Occupational Health and Safety Service (OHSS) is an independent organisation which offers services regarding Working Conditions, mandatory Risk Inventory & Evaluation (RI&E) and Sick Leave in the Netherlands. By Dutch employment law, some parts of Sick Leave Netherlands process have to be outsourced and executed by the Occupational Health & Safety Service provider.
• The Company Doctor gives advice in the area of employment and health and is usually working at the Occupational Health & Safety Service provider.
• The Case Manager is responsible to coordinate and manage the full end-to-end Absenteeism process. By law, the employer must appoint a Case Manager (either internal, such as the employee’s manager, or external) to ensure the accurate execution of the process.

Legal Requirements Sick Leave Policy Netherlands

Working Conditions Act [Arbeidsomstandighedenwet/Arbowet]

Working Conditions Act [Arbeidsomstandighedenwet/Arbowet] requires every employer to conduct a Health and Safety Policy aimed to provide optimal working conditions for employees.

The mandatory Health & Safety Policy includes essential information on the Risk Inventory & Evaluation (RI&E), Emergency Response Officers, and Confidential Counsellor.  Additionally, the Prevention Officer (Health & Safety Officer) tasks are included on all necessary preventive measures (also sickness) to ensure safe working conditions.

The Sick Leave policy is a separate policy outlining all mandatory steps required by law during the short-and long-term illness of an employee.

Permanent Incapacity Benefit (Restrictions) Act [Wet verbetering poortwachter, WvP]

Permanent Incapacity Benefit (Restrictions) Act [Wet verbetering poortwachter, WvP] also known as the Gate Keeper Act, which obliges the employers to take a number of steps within the sickness process to make sure the employee is able to return to work as soon as reasonably possible.

Sickness Benefit Netherlands

The employer is obliged by Dutch employment law (Dutch Civil Code article 7:629) to continue the sickness benefit payment during the first year and second year of the sick leave of the employee. The sickness benefit payment by Dutch employment law is for two years a minimum of 70% of the employee’s wages.

Implementing a Sick Leave Policy

The Sick Leave Policy Netherlands also known as the Sick Leave Regulation Protocol is a policy describing the sick leave process,  and the mandatory steps to take by employee and employer for short-and long-term illness in accordance with the Permanent Incapacity Benefit (Restrictions) Act.

Compliance

For HR professionals and entrepreneurs understanding and implementing a compliant and effective sick leave policy is essential. By doing so, you not only adhere to legal obligations but also contribute to a supportive and productive work environment.

The Sick Leave Policy in the Netherlands is essential as it outlines all mandatory steps required by law during the two years of an employee’s illness. This includes specific actions by the employee, employer, company doctor, and the Employee Insurance Agency (UWV).

Responsibilities

Employees must cooperate in their recovery process by law. The UWV oversees compliance, and failure to adhere to these steps can result in fines for employers for non-compliance or a temporary salary stop for employees. This complexity often catches international organisations off guard, making knowledge of these requirements crucial.

The policy ensures that the business can plan and manage workloads during employee absences effectively and it is demonstrating a commitment to employee health and well-being enhances the company’s reputation as a caring and responsible employer.

Key Features Sick Leave Policy Netherlands

Salary Continuation

Employers must pay at least 70% of the employee’s salary for up to two years of illness. However, it is common practice for most companies to pay 100% of the employee’s salary during the first year of illness, or a different percentage as specified by the Collective Labour Agreement. The percentage for the second year of illness may vary depending on the company and industry.

Mandatory Steps by Employer and Employee

Both employers and employees are required to actively work towards the employee’s return to work. This often involves working with occupational health services and developing a return-to-work plan. The policy will provide the essential legal steps and actions to be taken by both the employee and employer.

Involvement Occupational Health & Safety Service provider [Arbodienst]

Employers must engage with the Occupational Health & Safety Service provider and Company Doctor to assess and support the employee’s recovery.

Reporting and Documentation

Employers must document and report the sick leave and reintegration efforts to the Employee Insurance Agency (UWV).

Long-Term Illness WIA Benefit Netherlands

If the illness continues beyond two years, employees may apply for a WIA benefit (Work and Income according to Labor Capacity Act) and the process of termination of the employment contract according to Dutch law can be followed accordingly.

Purchase a Legal Sick Leave Policy

The law sets all sorts of obligations in the weeks of illness for both the employee and the employer to facilitate as much as possible the speedy recovery of the employee.

A well-crafted Sick Leave policy in the Netherlands for a company is not just a legal necessity; it is a strategic guide to navigate the complexities of sick leave management in accordance with the Permanent Incapacity Benefit (Restrictions) Act.

The comprehensive Absence Netherlands Policy in English or in Dutch outlines the company’s code for employees who are ill and are unable to attend work and includes:

• The scope and explanatory of parties involved in the process.
• How to report sick leave, return and partly return from Sick Leave.
• The percentage of sick pay including the payroll process.
• Mandatory steps by law for employer and employee during the short-and long-term sick leave.
• Procedure of frequent absenteeism.
• Glossary of terms.

Protect your company and ensure compliance with Dutch regulations by drafting a mandatory policy. Connect with our seasoned employment lawyer to craft the sick leave policy for your business.

If you are in need for support in sick leave administration or need a company Sick Leave Policy, get in touch with us! 

Additional Considerations

• Insurance Options: Consider taking out insurance to cover the costs associated with long-term sick leave.
• Employee Support Programmes: Implement employee support programs such as Employee Assistance Programs (EAPs) to provide additional help during illness.
• Flexible Work Options: Offer flexible working arrangements to facilitate gradual reintegration for employees recovering from illness.
• Data Protection: Ensure that all health-related data is handled in accordance with GDPR regulations to protect employee privacy.

More Information

• Sick Leave Netherlands: Mandatory Regulations & Rules.
• Occupational Health & Safety Service Provider Netherlands: What is an Arbodienst?
• Top 10 Underlying Causes of Absenteeism in the Workplace.