Sick pay laws in the spotlight, employers hit by high costs

MPs want to encourage more employers to take on permanent staff and are looking at relaxing sick pay rules for small firms, website Nu.nl reports on Thursday.

At the moment, companies are required by law to pay a sick worker’s salary for two years after they become ill. But this is a particular problem for small firms, who also have to pay for a replacement, MPs say.

The government’s macro-economic think-tank CPB says reducing this to one year would cost the state €800m because sick workers would then be referred to official safety nets.

VVD parliamentarian Anouskha Schut-Welkzijn suggests employers should only be responsible if the absence has a work-related cause. In addition, employers should be given more options to insure themselves against the extra expense.

Labour MPs want social affairs minister Lodewijk Asscher to develop a support system for small firms ‘without implications for income guarantees and re-integration programmes’.

D66 MP Steven van Weyenberg points out that many employers have agreed to higher sick pay rates in nationally agreed pay and conditions deals. ‘In 80% of agreements, sick pay is above the 70% maximum decided on by unions, employers and ministers,’ he said.

MPs are due to debate the sick pay scheme with Asscher on Thursday.