Long-term sick employees reportedly strain Dutch businesses, small firms hit hardest
Dutch entrepreneurs are struggling with long-term employee absences, a situation that is putting financial and operational pressure on companies, especially smaller firms, according to a recent survey by RTL Nieuwspanel and RTL Z in collaboration with DeOndernemer, BusinessWise, BID, Stichting 155, and the Instituut voor het MKB.
More than half of businesses reported experiencing long-term sick employees in the past five years, with one in four currently dealing with such absences. Among firms with 50 or more employees, 71 percent have experienced prolonged absenteeism, while smaller businesses often face multiple simultaneous cases, which can destabilize operations.
“A ski accident, a breakup—why should I, as an employer, pay for all of this?” said one panel member. “If I, as an entrepreneur, get sick, I receive nothing from anyone.”
Entrepreneurs cite stress, additional workload, and complex regulations as major challenges. Employers are legally required to pay sick employees for up to two years, including at least 70 percent of gross salary, sometimes topped up to the minimum wage in the first year. They must coordinate with occupational health services or company doctors and create reintegration plans. After two years, the UWV assesses eligibility for disability benefits.
The survey also found that long-term absenteeism is increasingly common. More than half of companies reported at least one case in the past five years, 35 percent experience it annually, and 10 percent face it every quarter. Absenteeism has risen since 2020, coinciding with the start of the COVID-19 pandemic.
Eight in ten business owners said absenteeism personally affects them, citing stress, overtime, and missed vacations. Nearly 90 percent called the impact on operations significant, while 80 percent view wage continuation as a major financial risk. Only 1 percent believe the risk rests solely with the employer; most attribute part of it to the UWV or employees themselves.
Political leaders are reviewing the rules. The coalition agreement of D66, VVD, and CDA, released Friday, includes plans to revise wage continuation and other social benefits, particularly for small and medium-sized businesses.
Pierre Koning, labor market professor at VU Amsterdam, said reducing the wage continuation period could lessen pressure on small companies but might also decrease incentives for rapid reintegration. “Currently, insurers have a business model to reintegrate employees quickly. If the government steps in after one year, the incentive for insurers to facilitate a return to work diminishes, likely increasing costs,” Koning told RTL.
