NederlandsAs of January 1, 2020, the new Labor Market in Balance Act (WAB) came into effect. As a result, the rules regarding employment contracts and dismissal have changed. The new law has consequences for employees and employers. We list the most important changes.
The legislator wants to reduce the distance between permanent and flexible employment contracts. That is why the Work and Security Act was first introduced in 2015. This was a step in the right direction, but the new law goes one step further. Below you can read a short summary of the measures.
Chain
Now, a fourth contract for a definite period, or when the contracts exceed a joint period of two years, constitutes a contract for an indefinite period. This will change from 1 January 2020: employers and employees can then enter into a maximum of three contracts in a three-year period. The subsequent contract is automatically a permanent contract.
Call agreements
The rules for on-call workers change with the arrival of the WAB. If on-call workers do not know how many hours they are going to work, this creates uncertainty. The new rules ensure that on-call workers have more security. From January 1, 2020, employees with an on-call contract must be called for work at least four days in advance. If the employer cancels or changes a call within four days before the call, the employee is entitled to wages for the hours during which he or she was called.
After 12 months, the employer must make the on-call worker an offer for a fixed number of hours.
payroll
From 1 January 2020, employees with a payroll contract must be given at least the same employment conditions and the same legal position as the employees who are employed by the company.
Ground for dismissal
The rules regarding dismissal are going to change. Dismissal will soon also be possible if various reasons for dismissal together provide a sufficient and reasonable ground for dismissal. This is called the 'cumulation ground'.
Transition fee
The compensation in the event of dismissal or non-renewal of a temporary contract will be calculated from 1 January 2020 from the first working day.
Premium differentiation (WW)
Employers pay a lower unemployment insurance premium for employees with a permanent contract. With this, the government wants to stimulate the giving of permanent contracts.
Do you have questions about this or do you want to know more about the WAB? Please contact your contact person at Actief Werkt! . He or she will be happy to assist you.