Many changes are taking place in the social security legislation and regulations. As a result, you acquire an increasing amount of (financial) responsibility, as an employer, for your employees. For example, the new legislation for WGA (Partial Disability Benefits Programme) self-insurers will come into effect on 1 January 2017, whereby the ‘WGA-vast’ and ‘WGA-flex’ arrangements will be merged into a single financing arrangement.
To give organisations a good insight into the subject matter, seminars were held on 29 June and 7 July 2016 and this topic was discussed in detail.
At present there is still a distinction between employees who enter the WGA scheme from permanent employment (WGA-vast) and those who enter it from temporary employment or without recent employment (WGA-flex). The new legislation eliminates the distinction between the two arrangements, and as an employer you are responsible for the entry of all your employees and ex-employees. Of course, this can have financial consequences for you as an employer.
How does this work, exactly?
The example below shows the situation of an ex-employee who enters the WGA scheme after 1 January 2017.
Your employee has a temporary employment contract that is not extended. Within 28 days of the termination of this employment contract, the ex-employee becomes sick. You have to pay the benefit payment under the Occupational Disability Insurance Act (Ziektewet) for up to 2 years, but if your employees stays sick, you also have to pay the WGA benefit for up to 10 years.
This example shows that the financial risks for you, as an employer, can be serious. It is therefore important to carefully consider whether to bear and insure the risk oneself (self-insurance) or to cover it via the UWV (Employee Insurance Agency). The best choice for you will depend on a number of factors, such as the number of employees, the total wage bill, the nature of the business, your sickness absence statistics and, if applicable, your policy on sickness absence and rehabilitation.
You should make the choice between self-insurance and cover via the UWV before 1 October 2016. This means you do not have much time left to make a decision. It is therefore important to decide soon what the best choice is for you.