On 1 January 2020, the Balanced Labour Market Act (WAB) in force. Employers must therefore have a written employment contract for all permanent staff. This must be in place by 31 March 2020 at the latest.
High and low unemployment benefit contributions
Since the introduction of the WAB, there have been two rates of unemployment benefit contribution: a high rate and a low rate. The general rule is that the high rate is payable. Only if the employee has a permanent contract may the low rate be paid. The unemployment benefit contribution is payable in full by the employer.
The high unemployment benefit contribution for 2020 has been set at 7.94%. The law stipulates that the low unemployment benefit contribution is 5% points below the high rate. Consequently, the low unemployment benefit contribution for 2020 is 2.94%.
Written employment contract
The fact that the employee has a permanent employment contract must be evidenced by a in writing agreement. For employees who have a permanent employment contract that has not yet been set out in writing, the terms must still be set out in writing. For employees who have moved to permanent employment following a fixed-term contract, an addendum (a supplement) to the written fixed-term contract will suffice.
It appears that not all employers are able to set out their agreements with permanent staff in writing before the turn of the year to 2020. For this reason, Minister Koolmees of Social Affairs and Employment is granting, in a room letter some flexibility. This means that:
- employers are given an extra three months to meet the administrative requirements for the reduced unemployment benefit contribution;
- exclusively for employees who joined the company before 1 January 2020.
These employers may pay the reduced unemployment benefit contribution for the months of January to March 2020 inclusive. However, if on 1 April 2020 it transpires that there is still no written permanent employment contract in place, the higher unemployment benefit contribution must be paid retrospectively from 1 January 2020.