NL: Hope, courage and pride. What does the Outline Agreement mean for employers and employees?

 

Last month, the parties PVV, VVD, NSC and BBB published the Outline Agreement, with the title „Hope, guts and pride“. The parties are „breaking new ground“. But where does this road lead – in concrete terms – for employers and employees? An overview of the plans in the field of employment law.

Permanent contracts

The parties are striving for „more permanent contracts“ for employees. The way in which the parties intend to achieve this has not (yet) been worked out in more detail.

Bogus self-employment

The parties want to stimulate security in the labour market. Part of this is the continuation of the legislative proposal for the Assessment of Employment Relationships and Legal Presumption (Clarification) Act (VBAR). This bill aims to prevent bogus self-employment. False self-employment is the situation in which someone presents themselves as self-employed, while there is actually an employment contract. The bill contains an assessment framework that clarifies when there is „ordinary“ employment and when work that can be performed by a self-employed person.

The bill also introduces a „legal presumption of employment“. The purpose of this legal presumption is to make it easier for vulnerable workers to claim their legal status and thus make use of the rights and protection they are entitled to, such as protection against dismissal and continued payment of wages during illness.

Preventing bogus constructions and protecting vulnerable workers is a hot topic; think, for example, of the meal deliverers in the Deliveroo judgment of the Supreme Court. It is therefore no surprise that the parties pay attention to this in the Outline Agreement.

Temporary employment sector

In the context of security in the labour market, the parties also want to regulate the temporary employment sector; „Fraudulent temporary employment constructions will be dealt with harshly“. The parties want to achieve this, among other things, by continuing the legislative proposal for the Admission of Workers to the Provision of Workers Act (WTTA). The purpose of this bill is to combat abuses in the temporary employment sector by introducing an admission system for companies that make workers available (including temporary employment agencies). Such companies are only allowed to operate on the market if they are allowed to do so. Companies that use temporary employment agencies are only allowed to do business with temporary employment agencies that are permitted.

It follows from the budgetary annex to the Outline Agreement that the parties only want to make the compensation of the transition payment, which employers can apply for under certain conditions in the event of termination of the employment contract of a long-term incapacitated employee, available to „small employers“. These are employers with fewer than 25 employees. Employers with 25 employees or more can no longer claim this compensation.

Unemployment Insurance Act (WW)

The budget appendix also shows that the parties want to reform the unemployment benefit. The way in which this will be shaped is not yet clear. The reform could consist of extending the notice period for employment contracts, in combination with a gatekeeper test for unemployment benefits, or shortening the duration of unemployment benefits to 18 months.

For migrant workers from outside the European Union, the parties want to introduce a work permit requirement, with the exception of highly skilled migrants. However, the parties do want to tighten up the highly skilled migrant scheme.

Furthermore, the aim is to hold employers of migrant workers responsible for the nuisance and costs of migrant workers without regular housing (short stay and mid stay). To this end, these employers must make agreements with municipalities in which their employees will be housed. In the case of long-stay stays, employers will also be responsible for the learning of the Dutch language bythe migrant workers.

The parties also want the Netherlands to focus on restricting the free movement of persons within the European Union with regard to labour migration, if and to the extent that enlargement of the European Union is discussed.

Conclusion
The Outline Agreement contains quite a few plans in the field of employment law, but the exact details and importance attached to them are still unclear. Employees are generally better protected, while employers are often confronted with stricter rules and higher costs. The question is whether the parties – also from a legal point of view – will succeed in actually realising these plans.

The Outline Agreement still needs to be worked out. If there is more clarity on the above-mentioned topics, we will of course inform you about it.

 

For further information, please contact:

Ron Andriessen, Partner

Labré advocaten, Amsterdam

e: ron.andriessen@labre.nl

t: +31 20 3052030

 

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