When an employer terminates an employment agreement on or after 1 July 2015 due to long-term illness and the employee receives a transition allowance, there is a chance the UWV will reimburse the transition allowance.
Since 1 July 2015, in case of a dismissal due to long-term illness, employers must pay the statutory severance payment called ‘transition allowance’: Even more expenses for the employer on top of the high costs during his employee’s long-term illness. To alleviate these costs, employers can apply for governmental reimbursement of the transition allowance from 1 April 2020, even if the transition allowance has already been paid in full.
Good to know
- Severance payments agreed upon in a termination agreement are also eligible for reimbursement.
- This also applies in case the transition allowance is paid upon dismissal of an employee with a ‘sleeping employment agreement’ (‘slapend dienstverband’).
Do not wait too long
- Transition allowance paid in full before 1 April 2020: file a request for reimburement with the UWV ultimately on 1 October 2020.
- All other cases: request reimbursement from the UWV ultimately within 6 months after having paid the transition allowance in full.
Requests can be submitted through an online form which has been made available on the
Flowchart
We have developed a flowchartso you can check if you are eligible for reimbursement of the transition allowance, how the allowance is calculated and when the request for reimbusement should be submitted.
