As an employer you are responsible for a healthy and safe workplace. And you are liable if they accidentally cause damage. Are you already familiar with the important employer risks? And do you know how to protect yourself against these risks?
- Your employee becomes (temporarily) incapacitated for work
You like to take good care of your employees and therefore invest a lot in their vitality and in preventing absenteeism. Yet someone can become ill or become incapacitated for work. You can feel that in your wallet. As an employer, you are obliged to continue to pay your sick employees (with an indefinite contract) a large part of their wages for 2 years. Even if the absence has nothing to do with the work. Does your employee have a temporary contract? Then you pay as long as this contract is valid. In addition, you incur even more costs in the event of illness of your employee (s). You also pay for (former) employees who leave employment during the first 2 years and who end up under the Sickness Benefits Act. And also for (former) employees who are still sick after 2 years and who receive a WGA benefit for a maximum of 10 years. You pay this in the form of a differentiated work resumption fund contribution. You pay this premium automatically and can be found on the decision of the tax authorities.
Tip 1: Insure yourself against absenteeism and WGA
As an employer you are obliged to continue to pay your sick employees (with a contract for an indefinite period) at least 70% of their wages for 2 years. Does your employee have a temporary contract? Then you pay as long as this contract is valid. According to some collective labor agreements, you even pay 100% in the 1st year. But in the first year it is never less than the minimum wage. You are also obliged under the Gatekeeper Improvement Act to help reintegrate so that he can get back to work quickly. But does the UWV think that you did not do enough with your reintegration obligations? Then you must pay your employee an extra wage for a maximum of 1 year. This is called a wage penalty.
- Your employee is injured during working hours
An accident is in a small corner. Also during working hours. The consequences of an occupational accident can be major. Not only for your employee, but also for you as an employer. Does anything happen to 1 of your employees during work? Then you are almost always liable for the damage suffered by law. Even if you adhere to the legally required risk inventory and evaluation (RI&E). Sometimes you are even liable if the accident occurs during a fun weekend with colleagues. Always make sure that you know what your risks are as an employer.
Tip 2: Consider business liability insurance
Prevention is always better than cure. Therefore, reduce the risk of industrial accidents by ensuring a safe working environment. The Ministry of Social Affairs and Employment gives 10 valuable tips for this . Nevertheless, an accident can happen just like that. Business liability insurance not only insures damage to items or goods, but also damage to persons.
- Your employee gets into financial difficulties
Perhaps you do not immediately think of your employee’s financial situation when it comes to employer risks. Yet it does sometimes affect you. For example, because money worries are standing in the way of his recovery. If your employee becomes temporarily incapacitated for work and therefore cannot work, he runs the risk of a lower income. This is due to the Work and Income (Capacity for Work) Act (WIA). This act assumes that your employee still earns money for the part that he can still work. For example, an employee must use at least 50% of his residual earning capacity. That is the part that he can still work. Is that not possible? In that case, the benefit that remains is a percentage of the minimum wage.
Tip 3: Protect your employees with WIA insurance
As an employer, you usually decide for yourself whether you offer WIA insurance (AOV for your Personnel). This is not required by law. However, some collective labor agreements oblige you to conclude them. Doesn’t this apply to you? Then there are many good reasons to do it. WIA insurance is a supplement to the statutory WIA benefits. In this way, in most cases your employee retains at least 70% of his last-earned wages. For your employee, this means that he can focus on his recovery without having to worry about his financial situation. For you as an employer, your employee will hopefully be able to return to work faster. In addition, with a WIA insurance you demonstrate good employment practices.