31 March 2020

Transitional compensation fee to be requested from April 1, 2020

By Amber Willemsen

With all the COVID-19 news, it could almost escape attention.

Nonetheless, in other times there has been a lot of noise about this: compensation for the transitional allowance in the event of a dismissal after two years of illness.

The Transitional Compensation Fee Scheme will enter into force on 1 April 2020. From that day on, an employer can submit a request to the Employee Insurance Agency (UWV) for compensation of the transition fee paid to a long-term incapacitated employee.

What was that again?

  • The employee has been ill for more than two years;
  • The employment contract has ended by termination after permission from the UWV or by a termination agreement (settlement agreement “SA”) due to two years of illness;
  • Compensation can be requested for redundancies due to two years of illness that took place from 1 July 2015;
  • UWV’s compensation is capped at the amount of the transition fee calculated on the expiry date of the cancellation ban. If the transition payment is higher due to dormant employment, the excess will not be reimbursed.

What should you do?

  • Old cases (cancellation ban expired before April 1, 2020):
    • End dormant employment immediately;
    • Pay the full transition fee before 1 April;
    • Submit the application for reimbursement no later than 30 September 2020.
  • New cases (prohibition to terminate after 1 April 2020):
    • Conclude SA or submit dismissal request to UWV and terminate employment;
    • Engage the company doctor;
    • Pay the transition fee in full;
    • Submit the application for compensation within 6 months after the transition payment has been paid. When the transition payment has been paid in instalments, the application can be made after payment of the last instalment.
  • Both cases:
    • Make the application on time, but only after payment of the transition fee. A late but also an early application is rejected.
    • Pay attention to the e-Recognition!

The conditions for compensation

  • The employment contract is terminated after two years of illness;
  • The employee was incapacitated for work at the time of the dismissal;
  • The full transition fee has been paid to the employee.
  • Completed application form (available on the UWV website from 1 April 2020);
  • Evidence:
    • Employment contract.
      No employment contract (anymore)? Then a payslip or other document that states the date of commencement of employment is also good;
    • Proof of termination of employment contract;
      Think of the SA, the letter of termination, or the judgment of the judge.
    • Evidence that the employee has left sick.
      This applies to termination through a SA. Consider a statement from the company doctor.
    • Pay slips;
      The pay slip of the month preceding the month in which the employee was sick for one year and the pay slip of the month in which the prohibition of termination due to illness expires.
    • Calculation of the amount of the transition fee;
      Please note: this concerns the calculation of the transition fee on the end date of the prohibition of cancellation, not the amount that you have agreed with your employee.
    • Evidence that full transition fee has been paid with the date of payment.
      Think of a bank statement, or with a payment in instalments, all relevant statements.

In special situations, UWV needs additional information

  • Employability and / or transition costs:
    • When these costs have been deducted from the transition fee, UWV wants to receive proof of payment of these costs. UWV also wants to see the written agreement whereby the employee has agreed to this settlement;
  • Has a transition fee been paid before?
    • Regardless of the reason: UWV wants to receive proof of payment for this transition fee.
  • Regulations for home services:
    • Has the employee performed work for a private individual as a home service provider for a maximum of three days a week? Then UWV wants to see the payslip for the last month in which wages were paid.
  • Employee was under 18:
    • Then UWV would like to see an overview of the hours worked in the months in which the employee was a minor.
  • Shift and / or overtime allowance:
    • Did the employee receive these allowance(s) during incapacity for work? In that case, UWV wants to see all payslips on which these allowances are made, over the last 12 months of the prohibition of cancellation;
  • Profit distribution / bonuses:
    • Has the employee received such amounts during incapacity for work? In that case, UWV wants to see all that include these amounts, over a period of 36 months prior to the end of the cancellation ban.


In old cases, UWV will decide within six months after the application. Is the decision positive? Then the UWV will pay within six weeks. In principle, the UWV will decide on new cases within eight weeks. In the event of a positive decision, payment will be made within six weeks.

Do you disagree with the decision? Then you have six weeks to file an objection. Call us for assistance. Do you want to make sure that your application is going well? We are happy to help you with this too.

Amber Willemsen

Amber Willemsen


Amber Willemsen is a lawyer within the Employment law section.

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