To ensure that you haven’t missed out on anything during the summer holidays, we provide below an overview of the main changes as well as some upcoming reforms you may already want to start preparing for. Skim this introduction and the headers below to quickly get a gist of what’s new or read on if you want to know more.

At the beginning of the summer break, on July 5, 2022, the Dutch Minister of Social Affairs and Employment, published a letter setting out the Dutch Cabinet’s plan to reform and future-proof the labor market. On the same day the Dutch House of Representatives voted in favor of the Work Where You Want Act, which strengthens the position of employees when choosing whether to work from home or from the business location.

As of August 1, 2022, employers are obligated to comply with the Act Implementing the EU Directive on Transparent and Predictable Employment Conditions, which mandates certain changes to (template) employment contracts in the Netherlands. Also, on August 2, 2022, Dutch paid parental leave increased to nine weeks.

1. Upcoming Dutch labor market changes you may want to prepare for

The Cabinet’s plan, as published on July 5, is accompanied by major changes in the structure of the labor market and is structured into in five themes of which the most significant are described below. Although many of these proposals have not yet been fully worked out, it can be said that the structure of the labor market will undergo important changes in the near future. The Cabinet intends to decide on how to implement these themes by early 2023 at the latest.

• Encourage the establishment of long-term employment relationships by, e.g., abolishing on-call contracts and removing the interruption period between consecutive employment agreements

With respect to this theme, the Cabinet is working on reforms that will pertain to flexible employment contracts, for instance to abolish on-call employment contracts in their current form. This means that zero-hours contracts and min-max contracts will no longer be permitted in the future. They will be replaced by a “base contract,” the specifics of which have yet to be worked out.

There are also plans to remove the interruption period that keeps consecutive fixed-term employment agreements from converting into a permanent employment agreement. All previous work counts in determining whether a permanent employment agreement is in place.
The Cabinet envisions establishing an accessible form of conflict resolution, which vulnerable workers can use to ensure a better enforcement of labor rights. This body (a labor tribunal) could be similar to the Dutch Rent Tribunal (a body that gives expert advice, mediates and/or settles conflicts between tenant and landlord) in terms of its structure and working methods. The decision-making process to establish the labor tribunal will take place this fall.

Finally, a part-time employee unemployment benefit is being worked out, and the Cabinet plans to improve the sick-pay system by having the employee reintegrate with another employer during the second year, if the employee is unable to perform his or her own work.

• Clarify the rules for assessing the existence of an employment relationship with self-employed persons and the method of enforcement (i.e. Dutch tax authorities may restart to levy assessments and fines no later than January 1, 2025)

The Cabinet has highlighted the need for more equality in the treatment of workers, regardless of the form of contract. This is being addressed in various ways. First, disability insurance for self-employed persons is to be created. In addition, there are plans to change tax-related matters, such as limiting the self-employed deduction.

Whether a person is working as an employee or as a self-employed individual should also be easier to identify under the Cabinet’s plan. This mainly involves clarifying the relationship of authority (hierarchy).

The expectation is that this will lead to a further reduction of the gray area between employees and self-employed persons.

There are also plans to introduce a legal presumption, meaning that the onus will be on the employer (and no longer the worker) to provide evidence that no employment relationship exists.

Finally, efforts will be made in the coming period to restore compliance with the rules surrounding work and the assessment of employment relationships. This will mean, among other things, that the monitoring and enforcement of pseudo self-employment will be intensified, with the current enforcement moratorium by the Dutch tax authorities abolished no later than January 1, 2025.

• Amending the Work and Income (Capacity for Work) Act (WIA).

It is also the intention of the cabinet to start examining possible amendments to the Work and Income Act (WIA) with a specific focus on the practicality, affordability and ease of explanation of the system. At the end of the summer, the Dutch House of Representatives will be informed by letter regarding the development of this process.

2. Work Where You Want Act

The Dutch Senate is likely to adopt a measure that will strengthen the position of the employee to make a choice between working from home or from the business location. A senate committee is scheduled to hold a preliminary investigation on September 27, 2022.

With the proposed amendment an employer in principle should grant a request to change the workplace, if the desired place of work is (1) located within the territory of the European Union, and (2) the home address of the employee, or (3) a place of work suitable for employment from which work for the employer is usually performed (e.g. company site(s), flexible working locations used by the employer), unless the employer has an interest that outweighs the employee’s desire according to the standards of reasonableness and fairness. Factors that come into play here include the preservation of social cohesion in the workplace, if working outside the business location puts a particularly heavy burden on the employer in proportion to the work at home or other work location.

Under the new legislation, employees will be obliged to request a change in the workplace two months before the intended effective date, and the employer will have one month before the intended commencement date to issue its decision in writing. If the employer does not respond within that timeframe, the request is considered approved.

3. Statutory changes to template Dutch employment contracts

As of August 1, 2022, Dutch employers must comply with the Act Implementing the EU Directive on Transparent and Predictable Employment Conditions. Please refer to our full alert on this topic here. Below, we have provided you with some highlights.

The new law aims to improve the working conditions of employees by promoting more transparent and predictable working conditions while ensuring adaptability in the labor market. To achieve that, employers are now subject to a number of new obligations. These might require the revision of template employment contracts.

The main changes are the following:

• Ancillary work clauses (in which an employee is prohibited from working for others without permission) are void unless the clause can be justified based on an objective ground.
• Expansion of the employers’ obligation to inform employees of employment conditions in the employment agreement—these include the vacation entitlement, the duration and conditions of the probationary period, salary components, applicable social security insurance types, the usual place of work, training and procedures in the event of dismissal, etc.
• (Un)predictable work patterns: Employees with unpredictable work patterns (for example, those who are employed on a zero-hours basis) are entitled to refuse work if the employer does not give them at least four days’ notice before the work is to be performed, and the possibility for such employees to request a job with more predictable and secure employment conditions.
• Cost-free training: The employer must offer trainings free of charge if they are compulsory by law or by collective agreement.

4. Dutch paid parental leave upped to nine weeks

Beginning August 2, 2022 Dutch paid parental leave has increased to nine weeks. Parents can take up to 26 weeks leave in total. The amount of paid parental leave will be 70 percent of the employee’s daily wage during parental leave, up to 70 percent of the maximum daily wage. The Dutch Employee Insurance Agency (in Dutch: UWV) pays this benefit to the employer. Employers are not obliged to supplement this up to 100 percent of the employee’s daily wage during leave, unless it was agreed in a collective or individual arrangement or is company policy. Parents will have to use the nine weeks of paid leave during the first year after the birth of the child. They can use the remaining 17 weeks as they wish, until the child’s eighth birthday; this leave is unpaid, unless agreed differently in collective arrangements or is part of the company’s policy.

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