The Dutch labour law will change

The Dutch legislator proposed a revision of the employment laws for 2019. The goal of the legislator is to reduce the disproportionate difference in rights and benefits between employees and other, “flexible”, workers.

Changes in the employment laws are to be expected

A summary of the expected changes

• Payrolling contracts (employee is employed by company A and seconded to company B) are temporary contracts, meaning the laws of the temporary contract will apply. This means e.g. payrollers are entitled to the same salary as colleagues who are employed by the hiring entity.
• The zero-hour contract legislation will become more strict: an employee needs to be notified a minimum of four days in advance of working, the employee is entitled to salary if the request is cancelled within those four days. The duration of the flexible aspect of this contract will be limited to one year.
• The maximum probationary will be extended significantly (from two) to five months for indefinite-term contracts, and three months for fixed term contracts extending two years. The possibility to have a non-competition clause in combination with this extended probationary period is restricted.
• Social security contributions of the employer will be reduced if they offer their employees permanent contracts. The legislator tries to financially motivate employers to convert temporary contracts into permanent contracts.
• The period within which permanent contracts may succeed one another will be three years (currently: two). The period to start a new series will be three months (currently: six)..
• The grounds for termination will be extended. Currently one of the specific grounds needs to be completed and sufficient for termination; in the future it will also be possible to terminate on account of a combination of circumstances and grounds.
• Employers will be reimbursed when paying severance to employees on long term sickleave.
• Furthermore, severance will be due for all employees whose contracts are terminated (currently: it requires a minimum of two years’ service)

Fruytier Lawyers in Business will keep you updated about the upcoming changes in the Dutch labor laws. Should you have any questions please do not hesitate to contact one of our specialists.
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