On April 3, 2023, Social Affairs and Employment Minister Van Gennip sent a letter to the House of Representatives presenting the government's plans and measures for labor market reform. These aim to create a better balance between different forms of contracts, by offering more security to workers on the one hand and making companies more flexible on the other. The labor market package presented by the Cabinet consists of several components, each with its own measures.
1. Greater security for working people
The government is proposing several measures to strengthen the security of working people:
Mandatory disability insurance for the self-employed
The plan is to require self-employed workers to be insured for benefits of 70% of their last earned income, up to a limit of 143% of the minimum wage. The benefit will not exceed 100% of the minimum wage. The compulsory insurance does not apply to DGAs and income earners.
The cabinet is still investigating whether there will be an option for self-employed people to choose between public or private insurance with the same coverage and premium as the public variant (the so-called "opt-out").
Abolition of zero-hours and min-max contracts
Instead of on-call contracts, a basic contract is proposed with a minimum number of hours that workers must be employed. Employees must remain available to the employer at least 30% above this minimum number of hours. To provide workers with more schedule security, they will be given the right to refuse calls outside these set available hours. Low unemployment premium will apply to the basic contract.
If employees structurally work more hours than the stipulated minimum, an offer to adjust the scope of work must follow after 12 months (this already applies to on-call workers). An exception applies to schoolchildren and students with part-time jobs: they can continue to work on the basis of the current on-call contracts.
Temporary workers get a more secure contract with the temp agency after 52 weeks worked
Temporary workers can count on getting a contract with more certainty sooner. The duration of the most uncertain phases is shortened. The right to a permanent contract arises sooner. In addition, the cabinet aims to prevent competition based on employment conditions within temporary work. The current laws and regulations will be supplemented so that other terms and conditions of employment will also be subject to the requirement that they be at least equivalent.
The current 6-month break period in the chain rule will be abolished
In order to combat revolving door constructions in temporary work and increase the likelihood of obtaining a permanent contract, the current 6-month interruption period will be adjusted to an administrative limitation period of five years. After three consecutive temporary contracts with the same employer, a new temporary contract can only be offered after five years.
An employment committee for vulnerable workers shall be established
The Older Unemployed Income Security Act is extended one more time for four years
There is no premium increase 'premium differentiation WW'for additional work from 30 hours per week for a permanent contract (this was previously the case for a permanent contract for at least 35 hours per week)
2. Earlier clarity on reintegration obligations of small and medium-sized entrepreneurs
After one year of illness, small and medium-sized employers (up to and including 100 employees) can obtain clarity about the possibilities for replacing the employee, so that they can better continue their business activities. Together with the employee, employers can determine that reintegration within their own company ('first track' reintegration) is no longer feasible. If they cannot reach a mutual agreement and the employer wants to terminate the first track, the UWV should be asked for an assessment. However, the employer remains responsible for two years of sick pay and the progress of the reintegration process. The employer therefore remains responsible in the second year of illness for the reintegration of the sick employee, even if the first track has been completed.
For larger employers, existing reintegration obligations remain in place. They have more opportunities to find suitable work within their organization for workers who are in the process of reintegration.
3. Binding of employees during crises and emergencies.
There will be a Crisis Personnel Retention (CP) scheme, formerly known as part-time unemployment. This scheme is designed to deal with crises and emergencies outside the normal business risk. Employers can only claim it if they have at least 20% less work across the company. Moreover, the CP is only intended for temporary crisis conditions, where a company can use the scheme for a maximum of six months without the possibility of extension.
Employers are given the option of temporarily reassigning employees to another position, working in another location, or temporarily reducing their hours of work (at least 20%). An allowance can be requested for the hours worked less. The minister previously called this "part-time unemployment". However, the government does not consider it desirable to affect employees' WW rights during crisis situations.
4. Preventing false self-employment
The government has previously outlined how it intends to clarify the regulations surrounding the assessment of employment relationships:
- The open norm of 'working in the service of' (or authority) from Article 7:610 of the Civil Code will be colored.
- there will be a civil law legal presumption of an employment contract linked to an hourly rate (possibly between €30.00 - 35.00).
- enforcement on sham self-employment will be improved and strengthened in the short term.
Always the prospect of new work
The government wants to give people as much prospect of new work as possible through two pillars: promoting lifelong development (LLO) and getting more people into work by reforming the labor market infrastructure and encouraging work-to-work when an employment contract is terminated.
When?
Minister Van Gennip plans to put the necessary legislation into Internet consultation around the summer of 2023, after which the legislation could be presented to the House of Representatives in the spring of 2024. It seems realistic that labor law will once again change dramatically.
This blog was written by Mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists entrepreneurs daily with a wide range of employment-related matters. From dismissal cases to drafting watertight contracts and policies – with his practical and personal approach, he helps employers and employees move forward. Want to know more?Visit Stijn's page.
Arbeidsadvocaat.nl is happy to think with you about the impact of the above measures on your organization. Please feel free to contact us .
May 2023
