‘Incapacity for Work’ changes from 1 July 2023

In the area of Incapacity for Work, a number of provisions will be changed as of July 1st 2023.

Temporary employment clause in phase 1-2

Temporary workers working in phase 1-2 may be employed with a so-called “Agency clause” in their employment contract. Currently, the temporary employment clause means that a temporary employment contract automatically ends if the hirer/client terminates the temporary worker’s employment, or if the temporary worker reports in sick.

Temporary employment contract not automatically ended

As of July 1st 2023, if a temporary worker reports sick, the temporary employment contract with an Agency clause will no longer end automatically, but will continue until the agreed end date of the contract. So there is no transitional law. The new collective labor agreement provision has immediate effect.
One waiting day applies in that case, without waiting day compensation.

Right to supplementary wages

As of July 1st 2023, in case of incapacity for work of the temporary worker, the temporary worker is entitled to a wage supplement for the first 52 weeks. The amount of the supplement is 90% of the established wage, with the legal minimum wage as the minimum wage an employee should receive. From the 53rd  to the 104th  week, the temporary worker is entitled to 80% of the established wage.

Sickness benefit

In the event that the employment contract of the temporary worker ends while the worker is still incapacitated for work, and is entitled to sickness benefit, the temporary employment agency is obliged to supplement the sickness benefit.
In that case, 90% of the established benefit daily wage will be paid in the first 52 weeks, calculated from the first day of sickness. From the 53rd to the 104th  week, 80% of the established benefit daily wage will be paid.

Sick leave insurance

It is advisable for temporary employment agencies to make a provision for sick pay or otherwise make a provision to cover the risk for these costs through insurance. For our clients, we at AAme are already hard at work looking for a suitable sick leave insurance policy.

More information?

If you have any questions or would like more information on the changes to the ‘incapacity for work’ provisions, please contact AAme’s salary advisers.

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