Netherlands’ Balanced Labour Market Act: What to Expect

PRO UnlimitedBy PRO Unlimited 1 month ago
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On May 28, 2019, the Dutch Senate approved a new law that will greatly impact existing rules regarding contingent workers in the Netherlands. The Balanced Labour Market Act, or WAB, addresses several labor-related topics including dismissal, fixed-term contracts and the treatment of on-call employees. aiming to narrow the gap between permanent and temporary workers when it goes into effect on January 1, 2020.

This law promises to bring some sweeping changes to employment practices in the Netherlands, meaning that employers and contingent labor providers alike may need to consider implementing some adjustments of their own before January to stay compliant.

Some of the changes to come with WAB are:

  • Expanded resources for involuntary termination: A new ground for dismissal by which an accumulation of specified reasonable grounds can justify termination
  • Mandated transition allowance requirements: A dismissal allowance is required regardless of how long employment lasted
  • Increased probation periods: Option to have a probation period of up to five months
  • Changed unemployment insurance contributions: Increasing unemployment insurance contributions for contingent workers
  • New payroll agreements: Require increased benefits for workers

Before this law comes into effect, attention should be paid to changes that limit the discretion of employers and require updates to employment practices.

As a global Managed Service Provider (MSP) that is well-versed in international legislation and compliance, PRO Unlimited will continue to monitor the WAB and advise clients on the best ways to adjust accordingly in the Netherlands.

Interested in being better prepared for all the ways that WAB will alter labor-related actions in The Netherlands? Download your copy of our white paper.

If you’re interested in learning more about how PRO is helping organizations implement winning contingent workforce programs globally, please contact a PRO representative at 800.291.1099 or email at info@prounlimited.com.

 

Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of PRO Unlimited and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.

 

 

 

 

 

 

 

 

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