Short term disability (first 2 years) is payable by the employer to the employee.
Short term disability (first 2 years) is payable by the employer to the employee. A minimum of 70% of last salary is obligated, where the first year, the annual salary cannot be lower than social minimum. The costs for this legal requirement can be insured with a sick leave insurance. This insurance pays the employer back the salary payable to the employee the first 2 years. Employers and employees are both obligated to work together to prevent illness and work for recovery when illness occurs.
Premium is calculated over the total insured salary and depends on chosen own risk period, the insured amount and the type of work the employees are in. Typically this insurance also covers employers assistance with reintegration obligations (arbo services)
Premium is 100% paid by employer, and is no employee benefit but a risk coverage for the employer
In the Sick Leave insurance often also ARBO (Health and safety) services are (partially) covered. The employer is responsible for the Legal requirement regarding employees.
In brief, the rules are as follows:
- if the company doctor or health and safety service anticipates that the employees illness is going to last for a long time, they will advise, no later than six weeks after the start of the illness, on the employees options for returning to work;
- no later than the eighth week, employer and employee need to draw up a recovery and reintegration plan together. Together, they select a case manager who will supervise the plan;
- The employer can invite a reintegration company to help with the implementation of the plan. The employer will keep a reintegration file for the purpose of recording what has been agreed and done. Examine the file on a regular basis to see how everything is going and to determine whether any alterations need to be made to the plan;
- After the employee is ill for a year, there is an evaluation moment with the employee, at which both parties look at how the past year has gone. Together, they set out the reintegration outcome they wish to achieve during the second year;
- if the employee is not fully back at work after twenty months, the employer will draw up a reintegration report in consultation with the employee that will list everything that has been agreed upon as well as the concrete results of the planned resumption of work;
- after the sickness has lasted around twenty months, the employee will receive information from the Institute for Employee Benefit Schemes (UWV) about applying for occupational disability benefit. On the basis of the reintegration report the UWV will determine whether you and your employee have done enough to try to get the employee back to work. If the employer has not done enough, the UWV may decide that he must continue to pay the employee 70 percent of the wages for another year (the maximum). On the other hand, the employer may decide to stop paying the employees’ wages temporarily during the first two years of your illness if the employee does not sufficiently cooperate in efforts aimed at getting the employee back to work. Ultimately, failure to cooperate sufficiently can result in the employee being dismissed.