Illness after termination of employment
You might think that once an employee’s contract has ended, you as an employer no longer have any further responsibilities. However, that is not entirely true. When a former employee becomes ill shortly after dismissal, you still play a significant role.
It is vital to handle this correctly to avoid legal issues. By following the proper procedures, you protect both the interests of your former staff member and those of your company. A meticulous approach is essential in these situations. Read more here about this situation and the steps you must take.
What happens if an employee becomes ill after the end of their employment?
It seems like a difficult situation: an employee is no longer employed, but subsequently becomes ill. Nevertheless, as the former employer, you continue to play an important role. This is related to the premium differentiation of the Sickness Benefits Act (Ziektewet). As a former employer, you are obliged to ensure proper reintegration, even if someone has already left. Failure to do so can have financial consequences.
Whether you are responsible for the reintegration of the ill former employee depends on whether you are publicly insured with the UWV or if you are a self-insurer (eigenrisicodrager) for the Sickness Benefits Act. If you are publicly insured, the UWV is responsible for the former employee’s reintegration. They will appoint an insurance physician and bear the costs of reintegration. However, these costs are passed on through the differentiated Return to Work Fund (Werkhervattingskas) premium.
If you are a self-insurer for the Sickness Benefits Act, the UWV does not take over the reintegration. In that case, you are personally responsible for managing the reintegration during the former employee’s (long-term) absence and for meeting the reintegration efforts arising from the Gatekeeper Improvement Act (Wet verbetering poortwachter).
What is premium differentiation?
It returns every year, and as an employer, you cannot seem to escape it: the differentiated Return to Work Fund premium. Also abbreviated as the Whk premium. The Whk is a premium that employers pay to fund a portion of the benefits for (former) employees who left employment while ill or who have entered the WGA (Return to Work Scheme for the Partially Disabled).
The higher the risk and absenteeism, the more expensive the premium your company must pay becomes. By actively addressing reintegration, you prevent absenteeism costs and premium increases.
For an employer, it can therefore be advantageous if the employee does not leave employment while ill. However, an ill employee cannot simply be reported as recovered. After all, the employee is not available for the labour market, and there is a risk that the former employee will still report as ill after leaving employment, with all the associated consequences.
If recovery is expected in the short term, it may be beneficial to keep the employee in service until this recovery. This prevents the employee from leaving employment while ill. In the latter case, a settlement agreement can potentially be agreed upon in advance. After recovery and termination of employment, the employee can apply for unemployment benefit (WW-uitkering), and the employer will not be affected by premium differentiation.
Conditions for Sickness Benefit if an employee has recently left employment
As soon as an employee leaves employment, they lose their coverage under the Sickness Benefits Act. However, thanks to the after-effects regulation of the Sickness Benefits Act, they can sometimes still receive a benefit.
A former employee is entitled to a Sickness Benefit if they become ill within 4 weeks after the end of the employment, provided they do not have another job or benefit. If someone becomes ill during unpaid leave, they are, by contrast, not entitled to the Sickness Benefit.
Reintegration of employees after illness
Given all the obligations and risks, it is essential to handle illness after the end of employment carefully. GJ GROEP, provides HR advice on the best reintegration approach and the steps you need to take.
In this way, you avoid fines and premium increases and maintain control over absenteeism and costs. As a professional HR partner, we understand that the optimal deployment and vitality of both employees and former employees are essential for your business performance. Curious about what we can do for you? Then please contact our absenteeism specialists.
