Implementation of the Directive on transparent and predictable working conditions (part 3): extension of information requirements

On Aug. 1, 2022, the law implementing the
EU Directive on transparent and predictable terms of employment will take effect. This blog is the third in a series of blogs detailing the key changes from that bill one by one.

This third blog addresses the changes regarding your duty to disclose information. The new law expands this information obligation on several topics. Antoinette Niebeek and Bas Blaauwhof explain in this blog which changes will be implemented.

The duty to inform

Already, there are several topics on which you must inform your employee, especially when entering into the employment contract, under the law. These include, for example:

• claim on vacation;
• weekly working hours;
• The length of the notice period; and
• Whether the employee participates in the pension plan.

This information obligation will be extended when the implementation law comes into force on Aug. 1. Violation of the obligation to provide information may lead to a claim for damages from the employee. such a claim will only succeed if the employee proves that he suffered damages because he did not have the correct information.

What do you need to inform your employee (extra) about? 

Employers must now inform their employees about the procedure surrounding termination of the employment contract in the first place after the introduction of the law. This should at least mention the requirements for termination, as well as the expiration periods within which the employee can appeal against dismissal.

There are several ways in which the employment contract can come to an end. Taking the summary dismissal as an example, the employer must inform about the two-month expiration period. Within those two months, the employee has time to ask the court to annul the summary dismissal.

What other changes to disclosure requirements does the implementation law bring?

The Implementation Act lists a number of other changes being made with respect to the information requirement. These changes appear to be less far-reaching. They are:

• Information on the various forms of paid leave (think moving or parental leave);
• when a probationary period is entered into, the employer must inform about duration and terms of the probationary period;
• the training policy applicable within the company and when the right to training exists;
• information on the identity of the hiring company if there is a temporary contract;
• the duration of normal daily or weekly working hours, the rules regarding overtime and related pay, and whether alternating shifts are involved for employees whose work is wholly or largely predictable ;
• information about the fact that the employee may be called on a variable basis and the times at which this might occur, the number of minimum paid hours and the pay for work performed in excess of those guaranteed hours, and call deadlines in the case of employees whose work is largely unpredictable .

(Un)predictable labor

The distinction between predictable and unpredictable labor, by the way, is not the same as the distinction between on-call and non-call contracts, as we have known it since the enactment of the Balanced Labor Market Act.

With an on-call contract (e.g., min-max or zero-hours), the employee's weekly or monthly working hours are not fixed. However, an on-call contract may involve "predictable work" if the employee knows well in advance what his or her working hours will be or if there is a certain pattern to them. Conversely, there may be 'unpredictable work' if someone works a fixed number of hours per week (and does not have an on-call contract), but the working hours vary from week to week. Keep in mind that in such a case, you may have to provide the employee with additional information from now on.

Conclusion

Thus, the new law significantly expands the obligation to provide information and on a multitude of topics. Be aware of this and keep your employment contract under constant scrutiny so that you comply with the new legislation by August 1, 2022!

The employment contract used by your company may no longer be up to date after the bill comes into effect. Please contact us so that we can reassess and update your employment contract in accordance with the (new) regulations.