Sick pay to be reduced to one year

Entrepreneurs with small companies will only have to pay sick employees up to one annual wage instead of two years. This only applies to businesses with up to ten employees.

Last Friday, the Cabinet ruled on this wage/salary change, after which Minister of Finance Asscher made the change publicly known. 'Sick Pay is a huge problem, particularly for small businesses,' says Asscher. The former rulings on sick pay may deter employers to recruit staff.

The wage/salary would have to be paid for from the collective employer contributions as well as from Government contributions, which would amount to 20 million euros being earmarked. The intention of this is to ensure the employee does not go back on their decision.

It is not the first time that discussions on changes to the sick pay have taken place. Earlier this year a majority in the House of Representatives had already asked for Asscher to look towards this change. Asscher hopes that by November or December the 'knot will be tied,' after he has been talking with employers, trade unions and the government.

 Source: P&O Actueel