Risicoregeling
Risk Regulation
A risk arrangement is an arrangement under which an employer elects to bear the financial risk of continued wage payment in the event of sickness or incapacity for work itself, rather than remitting premiums to the UWV.
In Dutch social security law, an employer may elect to assume its own risk, also known as self-insurance. This entails that the employer itself bears responsibility for benefits payable in the event of sickness (under the Sickness Benefits Act) or partial incapacity for work (under the WGA scheme), rather than covering these risks through collective premiums paid to the UWV.
The arrangement is significant in that it enables employers to reduce premium costs and exercise greater control over reintegration processes, provided they possess adequate financial capacity and expertise. In practice, the scheme is frequently adopted by larger employers and temporary employment agencies capable of spreading the risks and implementing their own sickness absence policies.
Electing to assume own risk requires an application to the UWV together with the provision of security, and the election may be reviewed annually.
“The employer has opted for the risk arrangement in order to finance the benefits under the Sickness Benefits Act itself and thereby exercise greater control over the reintegration process.”
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