Effective January 1st, the rules regarding employment contracts and dismissals have changed. This is relevant for both employers and employees. Employers will pay a lower unemployment insurance premium for employees with permanent contracts. Payroll employees will have a better legal position and employment conditions, and on-call workers will have greater job and income security.
Purpose of the WAB
Employees with permanent contracts often have better working conditions and more rights than flexible workers. The government wants to close this gap between permanent and flexible contracts. Therefore, on-call workers and payroll employees will be given more security. It will also become more attractive for employers to offer permanent contracts.
Measures from the WAB
The introduction of the WAB will bring about the following changes on 1 January 2020:
Permanent contract: low unemployment insurance premium, flexible contract: high unemployment insurance premium
It will become more attractive for employers to offer employees permanent contracts. Starting in 2020, employers will pay a lower unemployment insurance premium for employees with permanent contracts than for employees with flexible contracts. The sector premium will also be abolished from that date. Read more about this here.
New possibility for dismissal: cumulative grounds
New grounds for dismissal introduced: the cumulative groundsDismissal also becomes possible when circumstances from the various grounds for dismissal submitted to the subdistrict court judge together constitute reasonable grounds for dismissal. In the case of dismissal based on cumulative grounds, the court can award the employee additional compensation.
Transition payment from the first working day
The employee is entitled to the transition fee in the event of dismissal from the first day of employment. The calculation of the transition payment will also change.
Chain regulation: 3 temporary contracts in a maximum of 3 years
As of 2020, employers and employees can 3 temporary contracts in a maximum of 3 years Enter into a permanent contract. The next step is then automatically a permanent contract. Until December 31, 2019, it was possible to enter into three temporary contracts within a maximum of two years. The interval (time between contracts) can also be shortened to three months by collective labor agreement for temporary, recurring work (not limited to seasonal work) performed for a maximum of nine months per year.
Payroll employee: equal legal position and working conditions
Employees with a payroll contract Starting in 2020, employees will receive at least the same employment conditions and legal status as employees of the company. Starting in 2021, payroll employees will be entitled to a good pension plan.
On-call employees: minimum on-call period and offer of fixed hours after twelve months
Employers must employ on-call workers call for work at least 4 days in advanceIf the employer cancels a call within four days, the on-call employee is entitled to wages for the hours for which they were called. After 12 months, employers must offer on-call workers a fixed working week.
