Date: Jan. 16, 2017
Modified November 14, 2023
Reading time: +/- 2 minutes
Over the past year, we have informed you of current developments in employment law through newsletters, the office's relationship magazine (In Orde) and through our private LinkedIn group (WWZ Loket). Also in 2017, several changes are planned that you as an employer should take into account. Below is an overview of the most important developments:
Minister Asscher recently sent a bill to the House of Representatives which, among other things, reiterates that employers will be compensated from the General Unemployment Fund (AWF) for the compensation they paid when dismissing a long-term sick employee. If the regulation is approved by the Senate and House of Representatives, it will entail that from now on you will be able to ask for reimbursement of the transition compensation after submitting the sick employee's reintegration file to the UWV. The scheme is intended to be introduced retroactively.
Should you have said goodbye to long-term sick employees as of July 1, 2015 or plan to lay them off in the coming months, it is wise to keep a close eye on the new rules and keep the file. You may be able to reclaim the transition compensation later.
Minister Asscher has also proposed a change in the law in another area. CLA parties will have more room to deviate from the transition compensation due in case of dismissal for economic reasons. However, the arrangement that can be included in a CAO must provide for reasonable financial compensation or a provision that increases the chances of new employment. It will soon no longer be necessary to grant at least a provision equivalent to the transitional compensation if the bill is adopted.
The DBA law that deals with the use of self-employed workers is still under discussion in The Hague. Active enforcement of the law has been suspended until at least January 1, 2018. How the concepts of authority and free replacement will be adapted to modern times is not yet clear for the time being. The advice we previously provided to take a critical look at flexible workers used in your company and the contracts used for them still remains in effect. Even if the law is not enforced, it is still prudent not to enter into assignment contracts with bogus self-employed workers. We will keep you informed of further developments regarding the DBA Act and the use of freelancers.
The Senate and House of Representatives have agreed to new rules that deal with the legal status of civil servants. They will fall under normal dismissal law. When the new rules will be introduced is not yet clear. What is certain is that employment law will change for this large group of workers.
On January 1, 2017, the ban on withholding the minimum wage went into effect. The withholding ban stems from the Law on Tackling Sham Constructions (WAS), which had been passed earlier. Under the new rules, for example, it is no longer possible to withhold meal allowances if the wages paid to the employee fall below the minimum wage as a result.
The state pension age continues to rise to 67 years and 3 months in 2020. Earlier, the deployment of older workers has been made more flexible by including specific agreements in the law that include: premium discounts, the shortening of the salary continuation period during illness, the expiration of the notice ban, etcetera. As a result, the employment of older workers is better regulated than it was a few years ago. If you would like to know more about the possibilities of hiring or retaining older workers, do not hesitate to contact us.
On Nov. 4, the Supreme Court ruled that payrolling is synonymous with temporary employment and it is not necessary for the payroll company to perform an allocative function whereby - in short - supply and demand are brought together. This ruling leads to undesirable outcomes for various parties and has led to questions in Parliament. Whether this ruling will lead to a change in the law in the short term is highly questionable given the elections taking place in 2017. The question of whether a payroll employee is equal to a temporary worker will have to be agreed upon in a subsequent coalition agreement, Asscher said.
The House of Representatives has passed a new Occupational Health and Safety Act. It expands the rights of employees and works councils and makes company doctors less dependent on their clients. You may be wondering if you should do something about it.
Although the Senate has yet to approve the law, it is still good to know some of the important changes that may arise in advance. The new rules are expected to take effect from mid-2017.
Your absence regulations may need to be updated when the new law is implemented. Your staff should also be informed of the new rights they will have. If you do not yet have a company doctor, start looking for one. If you do work with a regular company doctor, start discussing the new rules in good time. This will prevent you from suddenly being confronted with costs for preventive advice you were not informed about beforehand.
Want to know more and stay informed?
If you would like to learn more about the various changes taking place in the field of labor law, current case law or other developments, you are also welcome to attend our monthly current affairs meetings in 2017.
The first next meeting will be on Jan. 24 from 12:30 to 2 p.m. We still have a few seats available. See if there is still room: labor topical meetings.
As attorneys for business owners , we understand the importance of staying ahead. Together with us, you will have all the opportunities and risks in sight. Feel free to contact us and get personalized information about our services.