New Dutch Legislation Allows Small Businesses to Replace Long-Term Sick Employees After One Year
The Hague, Thursday 2 April 2026
Proposed Dutch legislation allows small businesses to exclusively seek external placement for staff sick for over a year, offering crucial operational certainty and enabling faster workforce replacement.
Legislative Evolution and the ‘Second Track’
Building upon recent initiatives to make medical advice the definitive factor in sick leave returns, the Dutch government has taken its second major step to alleviate the burden of long-term employee illness on smaller enterprises [1]. On 2 April 2026, Minister of Social Affairs and Employment Thierry Aartsen formally submitted a new legislative proposal to the House of Representatives [1][2]. The bill stipulates that if a sick employee is unable to return to their original workplace within one year, small and medium-sized enterprises (SMEs) can exclusively focus on finding them a position at a different company starting from the second year of illness [1][2]. This ‘second track’ reintegration strategy aims to provide employers with much-needed clarity, allowing them to replace absent staff more efficiently [1].
Catalysing the Digital Economy
For the rapidly evolving digital economy—encompassing artificial intelligence (AI), Software-as-a-Service (SaaS), Fintech, and Cybersecurity—this legislative shift is particularly consequential [GPT]. Startups and scale-ups rely heavily on software scalability and the rapid deployment of specialised talent to digitalise legacy industries [GPT]. When a critical cybersecurity analyst or AI architect is absent for two years, keeping their specific role vacant stymies technological development and investor confidence [GPT]. By allowing these highly dynamic firms to definitively seek external placement for long-term sick staff after 12 months, the government mitigates structural risks and enables founders to maintain their growth trajectories [1][GPT].
Financial Frameworks and Wage Sanctions
To understand the relief this new proposal offers, one must examine the broader context of Dutch disability and income support systems. Under the existing regulations, such as those governing provisions for young disabled persons, disability benefits are intricately calculated based on a fundamental metric: the minimum monthly wage divided by 21.75 [4]. The daily benefit amount is typically determined using the formula 0.75 multiplied by the difference between this basis and the individual’s daily income [4]. When an SME is forced to navigate these complex calculations while simultaneously funding a vacant position, the financial strain is palpable [1][4].
A Paradigm Shift for SME Founders
Together, these two legislative steps signify a broader governmental strategy to make the financial risks of sick pay more manageable for the SME sector [1]. Minister Aartsen noted that the proposed changes benefit both parties: employers gain the certainty needed to hire permanent replacements and operate at full capacity, while employees receive earlier clarity that their reintegration will focus on a fresh start with a new employer [1]. The cabinet is expected to develop further proposals in the coming period to continue easing the execution of sick pay regulations for smaller businesses [1].