The Balanced Labour Market Act (Wab) bill was adopted by the Lower House on 5 February 2019. This bill should reduce the differences between permanent and flexible work by adjusting flexible labour, dismissal law and the Unemployment Insurance Act. The most important changes are the introduction of a ground for cumulation, which means that dismissal is also possible if there are several (partial) grounds for dismissal, and employees are entitled to a transition payment from the first day, even during the probationary period.
In our previous news item, we have already listed a number of proposed measures. The adjustment of the probationary period that was mentioned will not go ahead, but the other measures will.
The definitive changes are now as follows:
• Dismissal will also be possible if there are different grounds for dismissal. Currently, the employer must fully comply with one of the grounds for dismissal mentioned in the law. This new ground for dismissal gives the court the possibility to combine these grounds. In that case, the employee can receive a maximum of half of the transition payment on top of the transition payment.
• From the first working day, the right to a transition payment arises, even during the probationary period.
• The accrual of the transition payment will be reduced for long periods of service. This will be one third of a month’s salary per year worked for everyone;
• The unemployment insurance contribution for employers will be lower if they offer an employee a permanent job instead of a temporary contract.
• There will be a scheme for small employers to compensate the transition payment if they have to terminate their business due to retirement or illness.
• The chain provision (several fixed-term contracts in a row) will be expanded, so that (just as before 2015) a maximum of three fixed-term contracts can be concluded in three years.
• The rules for seasonal work are changing: the break between different fixed-term contracts can be shortened to three months in the collective labour agreement if there is recurring temporary work that can be done for a maximum of nine months per year;
• There will be an exception to the chain arrangement for temporary staff in primary education who stand in for illness;
• Employees who work on a payroll basis will receive at least the same terms of employment as the employees who are employed by the client. They are also entitled to an adequate pension.
