On April 9th, Minister Wouter Koolmees launched the Balanced Labor Market Act for online consultation. Although the Work and Security Act came into effect less than three years ago, it is time to modernize the labor market. The gap between permanent contracts and flexible labor must be reduced. Here is a summary of the main changes:
- The cumulative ground
Dismissal is also possible if multiple grounds for dismissal are partially applicable. In such cases, the judge can grant the employee up to half a transition compensation extra.
- Extension of the probationary period
When offering a permanent contract directly, the probation period is extended from a maximum of 2 to 5 months. For a fixed-term contract of more than 2 years, the probation period is extended from 2 to 3 months.
- Right to transitional compensation from the first day
This also applies to dismissal during the probationary period. This is a pro rata amount and comes down to 1/3e monthly salary per year worked.
4. Increase in transition compensation from the 10th year of service will be abolished
5. Compensation transition payment for employers upon dismissal after 2 years of illness
6. Compensation for transition allowance for small employers in case of business termination due to retirement/illness
7. Expansion of the chain regulation
The succession of temporary contracts is extended to 3 years. A deviation in the collective labor agreement is possible, whereby the period between two contracts is 3 months if it concerns recurring temporary work of up to 9 months. An exception applies for substitute workers due to illness in primary education.
8. Payroll benefits expire
Payroll employees are entitled to the same working conditions as employees who are employed by the client, with the exception of pension.
9. More rights for on-call workers
On-call workers only have to respond to a call if it has been announced at least 4 days in advance (which can be shortened to 1 day by collective labor agreement). If canceled within this period, the on-call worker is entitled to pay.
If the on-call contract has lasted 12 months, the on-call worker must receive an offer within one month after its expiration for a contract with a working hours scope that is at least equal to the average amount of work per month during that preceding period of 12 months.
10.Advantage WW premium for permanent contracts
The unemployment insurance premium is lower for a permanent contract than for a flexible contract.
The intended effective date of the WAB is January 1, 2020. The minister wants to send the bill to the Council of State before the summer and then to the House of Representatives.
We will keep you informed!
