In April we wrote regarding the draft Balanced Labour Market Act (WAB), for which an online consultation had been launched. On 7 November, the Government adopted the bill submitted to the House of Representatives. The intended date of entry into force is 1 January 2020. At the same time, the accompanying implementing decrees have been released for public consultation online.
A lot of criticism
The content of the bill largely corresponds to the version submitted for public consultation online. The proposed legislation has attracted a great deal of criticism. For example, from the Advisory Division of the Council of State, which calls for a more fundamental and comprehensive approach to the issue. The trade unions believe that the WAB actually accelerates the shift towards flexible working. And political parties on the left of the political spectrum also have their own criticisms and comments.
Minister Koolmees points out that the 16 measures must be considered in the context of one another.
A smaller difference between flexible and fixed
The aim of the WAB is to make it more attractive for employers to take on employees on permanent contracts. To this end, the so-called ‘ninth ground for dismissal’ is being introduced. At present, dismissal is only possible if one of the eight statutory grounds is fully met. From 2020, dismissal will also be possible on the basis of a combination of these grounds for dismissal.
A longer probationary period will also be possible for permanent contracts. For employees who are offered a permanent contract straight away, a probationary period of up to two months can currently be agreed. From 2020, this will be five months. During the probationary period, the employer and employee may, in principle, part ways without further complications.
For employees on a permanent contract, the employer will pay a lower unemployment benefit contribution. The difference between the low and high unemployment benefit contributions is 5% points (for example, if the low contribution is 1%, the high contribution is 6%). In certain cases, the employer must pay the higher contribution retrospectively. You can find the conditions in a draft decision.
Transition allowance
Employees who are made redundant are entitled to the transition payment. However, they must have been in service for two years or more. From 2020, entitlement to the transition payment begins on the first day of employment, and the probationary period is also taken into account when calculating the transition payment. In this context, the wage concept be amended.
In the case of long-term employment relationships, the rate at which the transition payment accrues is reduced to one-third of a month’s salary per year of service.
Small businesses receive compensation for the severance payment(s) they make when their business is wound up due to retirement or illness. The (presumed) conditions for this scheme are set out in a draft decision.
The scope for deducting training costs from the transition payment is being expanded. A draft decision published.
Chain
The chain provision is being relaxed. Currently, a permanent contract is not granted if a maximum of three consecutive fixed-term contracts are entered into within a two-year period. This is being extended to three years. An exception to the chain provision will apply to staff working as supply teachers in primary education.
The break within a series of fixed-term contracts may be reduced from 6 to 3 months under the collective agreement. This is subject to the work being of a temporary nature, which may be carried out for a maximum of 9 months per year.
Measures are being taken to prevent the mandatory availability of on-call staff. These measures can be found in a draft decision.