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In the event of an employee's incapacity for work, the employer is liable for continued payment of wages and reintegration for 104 weeks. After 104 weeks, the employee applies for WIA with the UWV. The outcome of that assessment—WGA (partially incapacitated for work) or IVA (fully and permanently incapacitated for work)—determines the subsequent costs. Employers with WGA self-insurance remain responsible for 10 years. A good absenteeism protocol and potential insurance mitigate the financial impact.
The short answer
- 104 weeks of continued wage payment: employer's obligation.
- Reintegration obligations under the Gatekeeper Improvement Act.
- After 104 weeks: WIA application at UWV.
- WIA results: WGA (partial), IVA (fully permanent) or no entitlement.
- WGA self-insurer: 10 years of employer responsibility in exchange for a lower premium.
The WIA process
After 104 weeks of illness:
- Employee applies for WIA: usually week 87 to ensure the decision is ready by the end of continued salary payment.
- UWV assesses: work capacity assessment by an insurance physician and an occupational expert.
- Outcome: WGA, IVA or no entitlement (< 35% incapacitated).
The assessment is based on remaining earning capacity. An employee with a loss of less than 35% cannot receive WIA benefits — he remains an employee with modified duties.
WGA versus IVA
WGA (Work Resumption for Partially Disabled Persons): partially and/or temporarily disabled (35–80% or fully but not permanently). UWV assesses recovery periodically.
IVA (Income Provision for the Fully Disabled): fully and permanently disabled (≥ 80%, no recovery expected within 5 years). Higher benefit, no pressure for reassessment.
It makes a difference for the employer: with WGA self-insurance, the employer remains responsible for 10 years; IVA is handled directly by the UWV.
WGA self-insurer status
Employers can opt for:
- Public insurance: WGA premium via the Tax and Customs Administration to the UWV. The employer pays the premium, the UWV pays the benefit.
- Self-insurance (ERD): the employer bears the WGA risk themselves for 10 years; lower public premium in return. Often combined with private WGA insurance.
ERD suits larger employers with good absence management. Small employers usually opt for a public approach.
Financial impact
For an employee with a monthly salary of €4,000 who becomes completely incapacitated for work:
- 104 weeks of continued salary payment: ~€105,000 including employer contributions.
- Reintegration costs: €2,500 – €7,500 track 2.
- WGA payment continuation obligation: partially for another 10 years for ERD.
Hence the importance of absenteeism insurance and a good reintegration policy — discuss with your insurance advisor and accountant.
What does the employer do during the process?
- Follow Gatekeeper — see employee reintegration.
- Document all conversations and steps.
- Collaborate with the company doctor and occupational health service.
- Investigation into reassignment to suitable work.
- Engage a reintegration agency for track 2.
- In case of disagreement: expert opinion from UWV (~€100).
After 104 weeks: discharge due to long-term disability
The employer may apply to the UWV for dismissal after 104 weeks of illness (ground b, Art. 7:669 paragraph 3 sub b BW). Conditions:
- Employee sick for at least 104 weeks.
- No recovery expected within 26 weeks.
- No suitable work (reassignment) possible within the organization.
If granted: dismissal with observance of the notice period and transition payment. Under certain conditions, the employer may receive compensation for the transition payment from the UWV (Scheme for compensation of transition payment in case of long-term disability).
Honest recommendation
Incapacity for work is one of the most expensive employer risks. Establish good prevention (RI&E, occupational health and safety), a sound reintegration policy (strictly follow the Gatekeeper regulations), and appropriate insurance. In the event of long-term illness, engage an employment lawyer or attorney for financial optimization — particularly regarding compensation for transition payments and potential WGA self-insurance.
Related topics: continued payment of wages during illness and absence protocol.
Frequently Asked Questions
The situation in which an employee is wholly or partially unable to work due to illness or disability. During the first 104 weeks: continued payment of wages by the employer. Thereafter: WIA application to the UWV with an assessment as WGA, IVA, or no entitlement.
WGA = partially and/or temporarily incapacitated for work (35–80%, or fully but not permanently). IVA = fully and permanently incapacitated for work (≥ 80%, no recovery expected within 5 years). The IVA benefit is higher and without the pressure of reassessment.
The employer bears the risk of the WGA benefit for 10 years themselves in exchange for a lower public premium. Often combined with private WGA insurance. Suitable for larger employers with good absence management.
Yes, via the UWV on grounds b (long-term incapacity for work). Required: at least 104 weeks of illness, no recovery expected within 26 weeks, and no suitable work possible within the organization. If granted: dismissal plus transition payment, sometimes compensation from the UWV.
In the event of dismissal due to long-term incapacity for work, the employer can apply for compensation from the UWV (Transition Payment Compensation Scheme). Conditions: dismissal after 104 weeks of illness, transition payment actually paid. Application within 6 months after payment.
No entitlement to WIA benefits. The employee remains employed, and the employer adapts the work to the remaining capabilities. In the event of a persistent mismatch between work and capabilities: a different route is required (suitable work, or ultimately a different dismissal process).
For 2 years of continued salary payment at a €4,000 monthly salary: ~€105,000 including employer contributions. Plus reintegration costs €2,500 – €7,500. With WGA self-insurance: follow-up costs for 10 years. Significant — hence the importance of absenteeism insurance.
