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Changes due to the new Dutch law Work & Assurance

On July 21, 2014 by Dutch Umbrella Company

On the 10th of June the senate passed the new law for Work & Assurance (WWZ). During the period of passing the senate pledged to minister Asscher of SZW that the first alterations will start January 1st 2015, instead of the July 1st 2014 in order to allow employers more time to make the necessary adjustments.

Also if for your company a Collective Labour Agreement is applicable this will be affected as well. Starting on January the first 2015 there will be some changes within the WWZ context that aren’t related to a CLA and these are outlined below.

In cases where Payroll Worls acts as a legal employer we follow the NBBU Collective Labour Agreement for temporary workers. This CLA has already been adjusted to the new WWZ law and the new CLA is effective as of June 1st 2014 and is applicable for 5 years.

Overview of the most important changes:

As of 1 January 2015:

  • It’s no longer possible to incorporate trial period in an employment contract with a duration of less than six months.
  • It’s no longer possible to include a non-competition clause in fixed-term contracts, unless there are signs of complex company interests.
  • An employer notice period becomes effective for fixed term contracts. For fixed term employment contracts with a duration of 6 months or longer you must to notify the employee (in writing), at least one month in advance, if the contract will be extended or terminated.

 

As of 1 July 2015:

  • The number of employment contracts and employer can offer is shortened. An employee is entitled to an indefinite employment contract as of 2 years of employment (or 3 temporary employment contracts). In order to break to chain the period in between must be 6 months of not working (was 3 months). There will be more limitations to the use of 0-hour/flexible hours employment contracts.
  • Redundancy payments  are being replaced by the new transition payments. If an employee has worked for you for more than 24 months and you wish to end the employment, the employee has the right to a transition compensation that will be registered in the WWZ law.
  • Changes in the termination procedure become effective. The social security office (UWV) is responsible for terminations resulting to long term disability of employees or company economic reasons. Redundancies due to other reasons will go through court.

 

As of 1 July 2016:

  • The duration of the unemployment benefit payment (WW) from the Dutch social security office is being reduced to 24 months as of 2016. Currently it is still 36 months.
  • After 6 months of receiving an unemployment benefit persons must accept all available work, even if it’s below their education level.

Questions about these changes? Please contact us via +31 (0)20 – 716 33 84.

Source: http://www.rijksoverheid.nl/nieuws/2014/06/10/ruime-steun-in-de-eerste-kamer-voor-de-wet-werk-en-zekerheid.html