What are the obligations of an employer at a small business (SME)?
- 21/08/2026
- Posted by: Rosalie Derksen
- Category: Uncategorized
As an SME employer, you have the same legal obligations as large companies when an employee falls ill: you are required to continue paying their salary, actively cooperate in reintegration, and draw up a plan of action. The size of your organization does not change this legal foundation. What does differ is the practical impact: in a small business, long-term absenteeism weighs more heavily and the resources to manage it are more limited. In this article, we answer the most frequently asked questions about employer obligations in SMEs.
What legal obligations apply specifically to SME employers?
SME employers are bound by the same employment law obligations as large employers. The Wet verbetering poortwachter (Gatekeeper Improvement Act) forms the core: as soon as an employee falls ill, you as the employer are required to act promptly, continue paying their salary, and actively support reintegration. There is no legal exemption for small businesses.
The key obligations at a glance:
- Report the sick leave to the occupational health service or company doctor within six weeks
- Have the company doctor draw up a problem analysis (no later than week 6)
- Draw up a plan of action together with the employee (no later than week 8)
- Maintain a reintegration file
- Report the sick leave to the UWV (Employee Insurance Agency) around week 42
- Conduct a first-year evaluation around weeks 46 to 52
- Prepare a reintegration report when the employee applies for WIA benefits (after 104 weeks)
For SME employers without their own HR department or occupational health service, keeping track of all these steps can be challenging. Nevertheless, complying with these obligations is crucial, as the UWV will retrospectively assess whether you as the employer have made sufficient efforts.
How long must an SME employer continue paying salary during illness?
An employer is legally required to continue paying at least 70% of an employee’s salary during illness for two years, or 104 weeks. In the first year of illness, a higher continuation of pay often applies based on the collective labor agreement or employment contract. This obligation applies in full to SME employers as well.
The continued salary payment obligation during illness is therefore a significant financial burden for SMEs, particularly for small businesses with few employees. To limit this risk, many SME employers take out absenteeism insurance. This covers a portion of salary costs during long-term sick leave, but does not relieve you of your reintegration obligations.
After 104 weeks, the salary continuation obligation ends and the employee can apply for WIA benefits. The UWV will then assess whether you as the employer made sufficient reintegration efforts. If those efforts were deemed insufficient, the UWV can impose a wage sanction: an extension of the salary continuation obligation by up to 52 additional weeks.
What are an employer’s reintegration obligations during long-term sick leave?
During long-term sick leave, you as the employer are required to actively work toward the employee’s return to work. This can be within your own organization (track 1) or with another employer (track 2). The employer’s reintegration obligations are laid down in the Gatekeeper Improvement Act and apply regardless of the size of the company.
Track 1 focuses on recovery and return to the employee’s original role or an adapted position within the same organization. Once it becomes clear that this is not feasible, track 2 must be initiated. This typically happens around the first-year evaluation (weeks 46 to 52), but can occur earlier if the situation warrants it.
Important to know: the UWV does not actively require an interim action plan during the process. However, when the WIA application is submitted after 104 weeks, the UWV will assess whether the reintegration efforts were adequate. Insufficient effort can result in a wage sanction.
What happens if an SME employer fails to meet their obligations?
If an SME employer fails to meet their reintegration or salary continuation obligations, the UWV can impose a wage sanction. This means you are required to continue paying the salary for an additional period of up to 52 weeks, on top of the standard two years — a significant financial consequence.
In addition to the wage sanction, failing to comply with obligations can also lead to:
- A higher WIA benefit that is (partially) recovered from the employer
- Legal disputes if the employee takes the matter to court
- Reputational damage as an employer in the labor market
- Complications when terminating the employment contract
Timely and thorough documentation of every step in the reintegration process is therefore not merely a formality — it is also a form of protection for you as the employer.
When is an employer required to engage a reintegration agency?
There is no legal obligation to engage an external reintegration agency. The decision to do so rests with the employer, not the UWV. What is required is that you as the employer can demonstrably show that you have made sufficient reintegration efforts. An external agency can help with this, but is not a legal requirement.
In practice, employers engage a reintegration agency when:
- Track 1 is no longer feasible and track 2 needs to be initiated
- The situation is complex and internal expertise is lacking
- The employee is stuck and needs professional guidance
- The reintegration file needs to be strengthened ahead of the WIA assessment
For track 2 reintegration, engaging a specialized agency is often the wise choice. After all, the employee must be actively guided toward work outside the organization, which requires specific knowledge of the labor market.
How does the reintegration approach differ between a small business and a large company?
The legal obligations are the same, but the practical implementation differs considerably. Small businesses often lack an HR department, have less room to offer adapted work, and feel the impact of one employee’s absence more acutely in their day-to-day operations. This makes the reintegration approach at an SME more personal, but also more vulnerable.
Large companies generally have more options for placing employees in a different role or department. In a small business, track 1 is therefore more often limited in scope, meaning track 2 comes into play sooner. At the same time, a small employer often has a more direct relationship with the sick employee, which can make communication and collaboration easier.
Track 2 always begins while the employment contract is still in place. It is not a consequence of dismissal, but a reintegration obligation during the period of continued salary payment due to illness. This distinction is important: even if you as an SME employer know there is no longer a suitable position for the employee, the employment contract continues for as long as the reintegration process is ongoing.
What support is available to SME employers during reintegration?
SME employers can turn to various parties for support with reintegration. A company doctor is required to be involved, but reintegration agencies, occupational experts, and case managers can also guide the process. The UWV also provides information and tools, but does not take over the management of the process.
Practical sources of support for SME employers:
- Company doctor or occupational health service for medical guidance and problem analysis
- Occupational expert for assessing the employee’s remaining capabilities
- Reintegration agency for guidance on track 1 or track 2
- Absenteeism insurer, who often provides a case manager
- UWV for information, forms, and the WIA assessment
Do you have questions about the right steps for your situation? Get in touch for a no-obligation conversation about your options.
How UFIND supports SME employers with reintegration
We understand that reintegration can be a major undertaking for a small business. As a specialized reintegration and outplacement agency with more than 15 years of experience, we help SME employers meet their obligations — without this coming at the expense of the employee or the organization.
What we offer:
- Tailored track 2 reintegration for employees who cannot be placed internally, aligned with their unique situation and the labor market
- Personal guidance from a dedicated coach throughout the entire process
- ACT methodology to help employees transform limiting thoughts into concrete steps toward new employment
- Recruitment expertise that goes beyond coaching alone, maximizing the chances of finding meaningful new work
- Support in complex situations, even when the employee has been on long-term sick leave or the labor market is challenging
Would you like to know how we can support your organization with reintegration? Contact us for a no-obligation conversation and we will work together to find the best approach for your situation.