Global Compliance Desk – Netherlands

Employment Law Changes 2020

What’s New: The Dutch Senate adopted new legislation to bring the labor market into balance effective January 1, 2020. The new legislation aims to reduce the gap in legal protection and monetary differences between fixed- and indefinite-term employed employees.
Outcome: The new legislation includes additional termination grounds, changes in statutory severance payments, and extension of the duration of fixed-term contracts to 36 months, on-call employment amongst other legal protections.

On 1 January 2020, the legislative proposal for the Labor Market in Balance Act (the Wet Arbeidsmarkt in Balans Act) will enter into force. The aim of the Act is to decrease the gap between fixed – and indefinite-term staff in legal security and financial distinctions. The Dutch government intends to encourage employers to offer longer-term or permanent employment agreements.

Duration of Successive Fixed-term Employment Contracts Extended to 36 months
Under present legislation, the highest length of successive fixed-term agreements is three consecutive fixed-term contracts of jobs within 24 months. The Act expands the time-limit to 36 months. The contract is therefore transformed into an unlimited employment contract after 36 months or the fourth fixed-term employment contract. This is a reversal of the Work and Security Law reform.

Notification for On-Call Employment Contracts

Current legislation does not control the length of time between calling the employee by an employer and reporting to work by the employee. Under the new Act, employers must provide on-call employees with notice of at least four days in advance and pay on-call employees if work is canceled within four days. A collective employment arrangement may reduce the notice to 24 hours. Furthermore, after a year, employers are obliged to offer guaranteed working hours to the on-call employee, which must be based on the average number of hours worked over the past 12 months.

Other New Regulations

  • Additional Termination Ground
  • Transition Allowance Changes
  • Adequate Pension Plan for Pay-rollers
  • Lower Unemployment Insurance Contributions

Major Take Away
The length of fresh fixed-term agreements could be considered by companies to maximize the permitted time span, which could be up to 36 months.

Shreya Bhattacharya
ABOUT THE AUTHOR
Shreya Bhattacharya
A labor and employment lawyer at Replicon who specializes in global compliance. Replicon provides award-winning products that make it easy to manage your workforce. Replicon is an industry leader in global compliance and has a dedicated team which pro-actively monitors international labor regulations for ensuring proper adherence with specific country rule requirements.
Get started today.
Set up a free trial based on your business needs. Start Free Trial

Common Administrative Challenges with Timesheets and How to Solve Them

There aren’t many people who enjoy sifting through a mountain of paperwork. If you haven’t yet found a reliable time tracking software solution, dealing with the hassle and headache of…Read More

How a Shared Common Data Platform for Project Management Can Create Harmony Across Business Teams

Today, professional services firms use some combination of ERP, CRM, HRIS, PPM, or other software along with their PSA solution. These systems serve different purposes, host different and overlapping data,…Read More

6 Ways to Simplify Remote Resource Allocation and Why It Matters

When you’re an enterprise operating at a global scale with a team of employees working from home, one of your major concerns is proper resource allocation. When it goes wrong,…Read More

Using shared services? These five technologies are a must

As organizations continue to scrutinize operating costs and look for areas to drive efficiencies, shared services centers (SSCs) are a no-brainer. The concept of a multi-function SSC has been around…Read More

Miscalculating wages by a few cents led to this company paying a six-figure lawsuit

West Marine Products, which operates a chain of retail stores across the United States specializing in boating supply and fishing equipment, recently settled a class action lawsuit involving 707 former…Read More

Employee time tracking is dead

iBeacons, Bluetooth Low Energy, Proximity sensing and the obsolescence of time tracking as we know it. Businesses have to track the time their employees work for a variety of reasons,…Read More
  • Polaris
  • Time & Project Insights
  • Time & Projects Solutions
  • Replicon Products
  • Replicon Users
  • Cloud
  • Corporate
  • Professional Services Management
  • Shared Services Management
  • Time and Attendance Management
  • Customer Feature
  • Time Intelligence
  • Industry News
  • Global Compliance Updates