Employer continued pay during sickness

“Loondoorbetaling bij ziekte werkgever” means an employer must continue paying wages when an employee is ill, typically for up to 104 weeks in the Netherlands. The exact amount and conditions depend on Dutch law, collective labour agreements, and how both parties cooperate in reintegration. In track 2 (spoor 2), wage continuation remains in place while reintegration focuses on suitable work with a different employer. This article explains how wage continuation and track 2 interact, with practical examples and key UWV risks.

How does wage continuation during sickness work in the Netherlands?

Loondoorbetaling bij ziekte werkgever is anchored in Dutch employment law: the employer continues wage payments during sickness, generally up to a maximum of 104 weeks. A common legal minimum is 70% of salary, while many collective agreements include supplements, especially in the first year. In practice, this can mean a higher payment than “just 70%”.

Wage continuation is closely tied to reintegration duties. Under the Gatekeeper Improvement Act, both employer and employee must take structured steps to enable a return to work. If those steps are not taken seriously, the employer’s financial exposure increases because UWV may extend the wage-payment period.

In track 2, it also matters which salary components are included. Fixed allowances may count, while incidental payments may not, depending on the employment contract and payroll rules. Aligning HR, payroll and case management early prevents disputes later.

• Legal framework: wage continuation during sickness up to 104 weeks.
• Amount: often at least 70%, with possible collective agreement top-ups.
• Minimum threshold: minimum wage can act as a floor, especially in year one.
• Condition: active cooperation under the Gatekeeper Improvement Act.

What changes when track 2 (spoor 2) starts?

Loondoorbetaling bij ziekte werkgever does not end when track 2 starts. Track 2 means return to suitable work within the employer’s organisation (track 1) is unlikely, so reintegration also focuses on suitable work with another employer. The employment contract usually remains in place, and wage continuation continues within the 104-week period.

Wage continuation can become a larger risk if reintegration efforts are judged insufficient. At the end of the waiting period, UWV assesses the reintegration report. If UWV concludes track 2 started too late, was poorly substantiated, or activities were too limited, a wage sanction may follow. That can force the employer to continue paying wages beyond the original period.

Example: an office worker cannot sit for long due to chronic back issues. Track 1 explores workplace adjustments and task redesign. If sustainable work within the organisation is not realistic, track 2 begins with labour-market orientation and placement support toward roles that match the medical capacity. Throughout, wage continuation remains, while every step is documented for UWV.

• Track 2 does not stop wage continuation; it runs alongside the employment relationship.
• UWV reviews the reintegration report; weak substantiation increases risk.
• Insufficient effort can result in a UWV wage sanction.
• A clear reintegration action plan helps justify decisions.

When can an employer suspend or stop wage payments?

Loondoorbetaling bij ziekte werkgever is not unconditional. An employer may suspend wages if the employee fails to provide required information or does not attend occupational health appointments without valid reason. Suspension means payment resumes once cooperation is restored. Stopping wages is more severe and may apply if the employee refuses suitable work or unreasonably refuses reintegration measures.

In track 2, disputes often revolve around “suitable work” (passende arbeid): work that fits medical capacity, skills and what can reasonably be expected. The occupational physician advises on capacity; the employer translates this into work options. Refusal without good reason can affect wage continuation, while inadequate employer support can later be penalised by UWV.

Example: an employee is offered a structured work-experience placement with another employer as part of track 2. If the occupational physician confirms it is medically feasible and the employee refuses purely because it is not appealing, that may be seen as non-cooperation. Documentation of offers, reasons and medical advice is essential.

• Suspend wages: missing information or skipping mandatory appointments.
• Stop wages: refusing suitable work or reasonable reintegration without valid grounds.
• “Suitable work” is tied to medical capacity and reasonableness.
• Use clear agreements aligned with reintegration rights and obligations.

Which duties come with wage continuation and track 2?

Loondoorbetaling bij ziekte werkgever is linked to shared reintegration duties. The employer must organise guidance, investigate suitable work, and keep a complete file. The employee must remain reachable, cooperate with medical assessments, try suitable work, and follow agreements. In track 2, labour-market actions outside the organisation become a core element.

Timing and evidence matter. Regular evaluations, adjustments to the action plan, and concrete activities such as targeted applications, networking, and trial placements should be recorded. UWV primarily checks whether the story is consistent: medical limitations, chosen route, and actions taken should align.

For employers, it helps to translate duties into practical routines: who owns the timeline, who documents what, and how decisions are substantiated. That is especially relevant for employer obligations in track 2, where insufficient documentation is a common pitfall.

• Employer: lead the process, explore suitable work, keep the file complete.
• Employee: cooperate, keep appointments, seriously attempt suitable work.
• Track 2: structured labour-market activity with evidence of effort.
• Translate obligations into concrete steps and documentation routines.

Practical calculations and common misconceptions

Loondoorbetaling bij ziekte werkgever often raises calculation questions, especially with variable pay. Example: an employee earns €3,000 gross plus a structural shift allowance of €300. If the allowance is considered fixed and structural, it may be included in the wage base; at 70%, the payment could be €2,310 gross. If the allowance is incidental, it may be excluded. Clarifying this early prevents conflict.

A frequent misconception is that “track 2 equals dismissal.” Track 2 is a reintegration route, not a dismissal route. Its aim is sustainable return to suitable work, but with a different employer. During the sickness period, dismissal protection generally applies, and track 2 does not remove that protection.

Another misconception is that track 2 is “only applying for jobs.” In reality, suitable work is often found through broader activities: labour-market orientation, networking, testing capacity in a work-experience placement, and refining a realistic target profile. These elements are typically part of a track 2 reintegration programme.

• Check which pay components count: base pay, fixed allowances, variable elements.
• Track 2 is reintegration, not automatic dismissal.
• Activities go beyond applications: networking, orientation, trial placement.
• Make agreements measurable: weekly actions, evaluation points, reporting.

How to avoid financial risks such as a UWV wage sanction

Loondoorbetaling bij ziekte werkgever becomes a major risk if UWV concludes the employer’s reintegration efforts were insufficient. A wage sanction can extend wage continuation and postpone the WIA assessment. Common causes include starting track 2 too late, vague activities, or a file that does not show why decisions were reasonable.

Risk reduces when you build a rhythm of reviews and adjustments. Schedule periodic evaluations with the employee, case manager and any external support. If medical capacity changes, the track 2 target profile and actions must change too. UWV expects that dynamic approach in the documentation.

It also helps to define when track 2 should be scaled down or stopped: for example after successful placement, when track 1 becomes realistic again, or when medical developments require a different approach. That relates to when a reintegration trajectory ends, where clear criteria prevent drift and later disputes.

• Start track 2 in time and substantiate why track 1 is insufficient.
• Use concrete activities, fixed evaluations, and consistent reporting.
• Keep the action plan aligned with occupational health advice.
• Define stop and adjustment criteria to keep the trajectory goal-driven.