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Pay Continuation After Illness

What are your obligations after 104 weeks?

Pay Continuation After 104 Weeks of Illness: Your Employer Duties

3 minuten mr. Jeroen Kaspers Employment Law for Employers Monday 26 May 2025 2025

Under Dutch labor law (Article 7:629 BW), your obligation to continue paying an employee’s salary during illness ceases after 104 weeks. The employee may qualify for a WIA benefit, subject to UWV assessment. If an employee continues working partially, for example, after a settlement agreement reducing their hours from 40 to 32 per week, and subsequently faces a new absence, you must determine whether renewed salary continuation is required. This depends on the *agreed work*—the duties outlined in the employment contract. For insights on settlement agreements during illness, consult our resources.

If the employee works in *suitable work* after 104 weeks, the original role typically remains the agreed work. However, if a settlement agreement establishes 32 hours as the new standard, this may become the new agreed work, obligating you to provide salary continuation for up to 104 weeks during a new absence (at least 70% of the salary, or the minimum wage in the first year, unless otherwise specified in the contract or collective labor agreement).

Mitigate Unforeseen Liabilities

Uncertain about your obligations under a settlement agreement? Contact Wolderwijd Juristen: call +31 365227007 or email kaspers@wolderwijd-juristen.nl.

Modifying Agreed Work: To Change or Not?

You face two options after 104 weeks of illness: modify the agreed work or maintain the status quo. Each choice carries distinct implications.

Option 1: Modify Agreed Work

By modifying the agreed work through a settlement agreement, you establish 32 hours or a new role as the standard. This provides clarity and allows the employee to be declared recovered, reducing pressure to return to the original role. However, a new absence triggers a 104-week salary continuation period, posing a risk if the employee’s health is unstable. Additionally, a reduction in hours of 20% or more requires a partial severance payment (Article 7:673 BW), unless waived.

Option 2: Maintain the Status Quo

Retaining the original 40-hour contract means the employee remains partially disabled for their original role. You pay only for hours worked in suitable work, potentially at a lower wage value. No new salary continuation applies during a new absence, saving costs. However, prolonged suitable work without clear reintegration terms risks an *implied modification*, potentially obligating you to resume salary payments.

Make Informed Legal Decisions

Ensure your settlement agreement minimizes risks. Contact Wolderwijd Juristen: call +31 365227007 or email kaspers@wolderwijd-juristen.nl.

Your Duties and Practical Steps

Your reintegration duties persist, requiring you to offer suitable work and involve a company doctor. A well-crafted settlement agreement must clarify whether 32 hours constitute reintegration or new agreed work. Include provisions for return of company property and confidentiality clauses. Key considerations include:

  • Pay Sanctions: Inadequate reintegration efforts may lead to UWV-imposed sanctions, extending your obligations.
  • Implied Modification: Prolonged suitable work without agreements may result in new salary obligations.
  • Collective Labor Agreements: Check our collective labor agreement resource for additional duties.

Practical Steps:

  • Specify in the settlement agreement whether 32 hours are reintegration or new agreed work.
  • Document reintegration goals in writing and involve the company doctor.
  • Reassess the situation after six or twelve months if health remains uncertain.
  • Use our settlement agreement checklist to avoid oversights.

Minimize Legal Risks

For advice on settlement agreements or reintegration, contact Wolderwijd Juristen: call +31 365227007 or email kaspers@wolderwijd-juristen.nl.

mr. J.A. Kaspers

mr. J.A. (Jeroen) Kaspers


Dutch Lawyer and Mediator

Jeroen advices (Dutch and Englisch) clients in the areas Employment Law, Contract Law and Tenancy Law. Please follow Jeroen on LinkedIn or contact him via kaspers@wolderwijd-juristen.nl and +31 36 522 7007.

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