The Minister of Social Affairs and Employment considers it necessary to fundamentally change the labour market. To this end, she has put together a package and submitted it to the House of Representatives. Below is a brief summary of what the minister intends.
No more on-call workers possible
Everyone should have the security of fixed hours. Zero hours contracts as well as min/max contracts will be banned. All workers will have fixed hours.
No revolving door construction fixed-term contracts
After three fixed-term contracts with the same employer, another round of fixed-term contracts can only follow after an interval of five years. Now, if you have entered into three fixed-term contracts and then no contract has been entered into for more than six months, parties can enter into three fixed-term contracts again. This longer interruption period will also start to apply to temporary workers. The minister also removes the current possibility to deviate from duration and number of contracts by collective agreement.
Seasonal work
For seasonal work, the existing possibilities remain the starting point. This means that the interval can be shortened to 3 months if there is recurrent temporary work that can be performed for up to 9 months a year. This can be done by collective agreement. And at the request of the Labour Foundation, the minister can designate positions by ministerial regulation.
Labour Commission
The plans recommend the creation of an employment commission to improve access to justice. This commission should ensure that all “vulnerable” workers have access to justice in an accessible way.
Premium differentiation exception (high/low WW premium)
The WW premium differentiation for permanent contracts provides that overtime up to 30 per cent of contract hours is possible under the low WW premium. If overtime exceeds 30 per cent on average over the year, the employer will owe the high WW premium retroactively. An exception to this main rule is included for full-time contracts. For contracts with an average workload of at least 35 hours per week, the so-called 30% revision situation does not apply.
Part-time unemployment in times of crisis
Companies need to be able to move quickly in times of crisis. The scheme will therefore focus on dealing with crises and calamities that fall outside the regular business risk. By this is meant; small-scale calamities, as we know from the Working Time Reduction Scheme (WTV), and larger crises such as the Covid-19 pandemic.
Employers are therefore given the option to have employees temporarily work in another position or at another location, or to have employees temporarily work less in times of crisis or calamities. An allowance can be used for the hours worked less. This concession was called part-time unemployment but the minister does not consider it desirable to affect employees“ unemployment rights hence it will be another ”concession".
After 1 year of illness employee clarity
Small and medium-sized employers (up to and including 100 employees) can already get clarity on the possibility of permanently replacing an employee after one year of illness. Incidentally, this does not mean that, as an employer, you can already say goodbye to the employee after one year of illness. It does mean that the focus in the second year of illness will mainly be on work with another employer.
Temporary workers more secure
A temporary worker will get a more secure contract sooner (namely after 52 weeks worked). Now, special rules often still apply regarding the number of contracts and the end of the contract for a temporary worker.
Mandatory certification of employment agencies
Lenders will be required to be certified and hirers will only be allowed to work with certified lenders. The Netherlands Labour Inspectorate will monitor compliance with the certification requirement.
ZZP'er compulsorily insured
If the minister's plans go ahead, the self-employed will have to take out compulsory disability insurance so that they have a safety net in case of illness.
Clarity regarding working as self-employed or employee
The rules around the qualification of the employment relationship are going to be clarified. The minister plans to amend the law accordingly, linking it to an hourly rate. The rate limit for this is yet to be determined (possibly rate between €30 and €35). An hourly rate below the rate limit will then be an indication of an employee rather than a self-employed person.
Finally, the minister wants to improve and strengthen enforcement on false self-employment in the short term. How and in what way is not yet clear.
All in all, another set of plans of which it remains to be seen whether they will eventually become law and whether they will solve the actual problems. Very recently, namely in 2020, the Work and Security Act was introduced which also aimed to improve the position of flex workers as well as the labour market. Apparently, that law did not work given all the new plans.