The no-risk policy has (financial) advantages for employer and employee, but how does it work again?
Under certain conditions, a sick employee falls under the no-risk policy and is entitled to a sickness benefit from the UWV. Although the benefit accrues to the employee, the employer may offset it against the employee's salary. The no-risk policy compensates the employer for the financial burden of a sick employee and aims to promote the employment of people with a history of illness or disability.
Who is covered by the no-risk policy?
The no-risk policy applies if the following cumulative conditions apply:
- the employee has completed the waiting period (104 weeks of incapacity for work);
- the employee has had a WIA examination and an occupational disability percentage has been established (the level of the percentage is not important);
- the employee falls ill again;
- at the old or a new employer;
- within five years.
There is one exception to the above enumeration. If the employee has completed the waiting period and continues to work for the same employer after the WIA examination, the occupational disability percentage must be 35% or higher in order to fall under the no-risk policy in the event of a new failure.
How high is the sickness benefit?
During the first year, the amount of ZW benefits is equal to the wages to which the employee is entitled. If an employee is entitled to 100% wage continuation on the basis of his employment contract or CAO, the UWV will also reimburse 100% (up to the maximum daily wage).
In the second year, the amount is 70% of the agreed (maximum) daily wage. The agreements between employer and employee are then no longer important.
How does an employer know if the no-risk policy applies?
An employer may ask the employee whether the no-risk policy applies, after the employment has lasted two months and the maximum probationary period has expired. The employee is then obliged to provide this information.
However, many employees do not know what the no-risk policy means and/or do not know whether they are covered by it. The employer is therefore advised to be careful when requesting this information and to inform the employee properly.
How can the ZW benefit be claimed?
If the employee covered by the no-risk policy is sick, the employer may apply for ZW benefits. On the application form, the employer can indicate that the employee falls under the No-risk policy of the Sickness Benefits Act.
Please note!
The above explanation of the no-risk policy is only a brief description of a complex scheme. It has been written to make employers and employees aware of the possibilities, so that they do not miss out on any money. If you would like specific advice on your situation, for instance on the question whether your employee is entitled to ZW benefits or how you can properly request data from your employees, please contact one of our employment lawyers.
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