Flowchart compensation transition allowance

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 website of the UWV.

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.

 

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