The Rutte III Government wants to improve the balance in the labour market. In this context, the bill Balanced Labour Market Act (WAB) released for public consultation online. You can find the proposal on the website of the Central Government. We’ve picked out a few highlights for you.
Greater certainty
The Government wants to offer employees greater security in the labour market. It is therefore making it more attractive for employers to take on employees on permanent contracts. To this end, it will be made slightly easier to dismiss employees on permanent contracts. Changes are being made to the transition payment. And the chain provision is being relaxed.
Additional grounds for dismissal
If an employer wishes to dismiss an employee, they must fully comply with one of the eight grounds for dismissal. The WAB will make it possible to dismiss an employee on the basis of a combination of the existing eight grounds for dismissal. This is referred to as the ninth ground for dismissal. If an employee invokes this ground for dismissal, they may be entitled to an additional half of the transition payment.
The probationary period for permanent contracts is being extended from 2 to 5 months.
Transition allowance
Employees are entitled to the transition payment from the very first day, even during the probationary period.
For long periods of service, the transition payment is reduced.
For small employers who have to wind up their business due to retirement or illness, a scheme will be introduced to compensate for the transition payment. The details of this scheme are not yet known. This measure will come into force on 1 January 2020, without retroactive effect.
Chain provision
At present, it is possible to enter into a maximum of three consecutive contracts within a two-year period without this resulting in a permanent contract. This is to be extended to three years.
In addition, it will be possible to reduce the break between a series of fixed-term contracts under collective agreements from 6 to 3 months. This option applies to recurring work that can be carried out for a maximum of 9 months per year.
An exemption to the chain rule is to be introduced for supply teachers in primary education.
Comments
Initial reactions to the bill have not been positive. According to VNO-NCW the proposal falls far short of the mark. CNV believes that the proposal will further destabilise the labour market. The ABU fears that the bill will not achieve the Government’s objective. The FNV sees some bright spots, but isn’t overwhelmingly positive either.
So we’ll just have to wait and see what remains of the bill after the consultation.