Labor market plans government
Van Bladel Advocaten 11 Jul 2022

Labor market plans government

On 5 July 2022, Minister Van Gennip (SZW) set out the government's plans for a future-proof labor market, including a (large) number of important plans in the field of employment law. These plans will be elaborated in bills at the beginning of 2023. In broad terms they are summarized in this blog.

End of on-call contracts

In the future, on-call contracts (‘oproepcontracten’) can only be entered into with students and schoolchildren. The on-call contract for all other groups is then no longer allowed: zero-hour contracts or min-max contracts will disappear. This will be replaced by a basic contract, which includes at least a quarterly hour standard, so that the employee knows what income is earned over that period.

Temporary workers (“Uitzendkrachten”)

Phase A, in which a temporary agency worker is only entitled to wages for hours worked and in which the employment contract ends when the user company terminates the assignment, will be shortened from 78 weeks to 52 weeks. Phase B, in which a temporary worker may enter into a maximum of six fixed-term contracts, will be shortened from four years to two years. The interruption period of 26 weeks will expire: taking a break of 26 weeks after which the periods start again at zero will no longer be possible. Moreover, temporary workers are entitled - even more than now - to equal employment conditions as the hirer's own staff. There will also be a mandatory certification standard for employment agencies.

Loss of the possibility of permanent temporality

A chain of fixed-term contracts is broken after a 26-week break. This option will expire: the interruption period will disappear, except for contracts with students and pupils.

Labor committee institution

A low-key, approachable form of conflict resolution will be introduced, with the aim of making it easier for vulnerable employees (migrants, but also others) to obtain their rights. Now the threshold – going to the subdistrict court – is often too high and too expensive. In the autumn, the decision-making process will take place on the establishment of a labor committee, which will be empowered to settle labor disputes involving vulnerable employees.

Measures for sustainable employment relationships

The government takes the principle that sustainable employment relationships pay: employee and employer would therefore be more willing to invest in each other. The government wants to encourage this through the following measures:

  • Choice in case of dismissal by mutual consent: from work to work process or transition payment;
  • Right to a higher unemployment benefit if it appears that temporary unemployment is necessary when following a work-to-work trajectory;
  • The (possibly paid) flex surcharge on the unemployment insurance premium will be refunded if a work-to-work route is chosen;
  • If there is a temporary reduction in work within a company, part-time unemployment benefits can be used;
  • In the second year of illness, reintegration is in principle aimed at the second track, in order to prevent the influx into the WIA as much as possible.

More level playing field between employee and self-employed person

The government aims to remove the improper incentives to opt for (false) self-employment. To this end, the following measures are taken:

  • Further reduction of the fiscal self-employed deduction (“zelfstandigenaftrek”);
  • Access will be made to the second pension pillar for the self-employed and the fiscal scope for pension accrual in the third pillar will be expanded;
  • Clarification will be provided in the regulations: the concept of “employer's authority” (“werkgeversgezag”) will be further elaborated. This is often decisive when assessing whether there is an employment contract or an independent assignment relationship;
  • The legal presumption of an employment contract will be strengthened: the employer will soon have - under certain circumstances - the burden of proof that there is no employment contract;
  • Enforcement (tax) rules in employment relationships (that has been put on hold in recent years pending new regulation) will be resumed (probably as of 2025);
  • There will be compulsory public disability insurance for the self-employed. There will be an opt-out for self-employed persons who have adequate, at least equivalent, private insurance.

After the summer, the government will present a step-by-step plan so that those involved can prepare for this.

Work-to-work

The government is committed to guide people (whether or not on benefits) to work via education and retraining schemes. “Lifelong development” is the basic principle of government policy.

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The above plans will be worked out in legislative proposals at the beginning of 2023. Of course, Van Bladel Advocaten will keep you informed of the legislative process and the possible effective date(s).