News
Employment law changes: on-call contract, chain of custody, reintegration and emergency provisions
1 June 2023 – Yvette Kouwenberg
In an outline letter dated 5 July 2022 the Minister of Social Affairs and Employment (in Dutch: Minister SZW) presented a framework approach to achieve a reform of the current labour market system. In line with this, the Minister SZW proposed in a progress letter ‘Working with and as self-employed(s)’ dated 16 December 2022 how to clarify the assessment of labour relations in the future. We recently informed you about this in our latest employment law special following the Deliveroo ruling.
In a new progress letter van 3 April last, the Minister SZW published a number of measures with the objective to offer more security to workers but also to enable entrepreneurs to be(come) more agile at the same time. In the below overview the most relevant proposals are highlighted. The intention is to offer the plans for Internet consultation before the summer recess and to present the bills to the House of Representatives next year. It is envisioned to have the bill enter into force on 1 January 2025.
1. Abolition of existing zero-hours and min-max on-call contracts
These type of contracts give way to a basic on-call contract with a minimum number of hours an employee is scheduled to work. On top of these minimum hours, the employee will also still have to be 30% available for work. However, an employee may refuse a call that is outside the predetermined (available) hours. The mandatory offer of a fixed hours commitment after 12 months will continue to apply if an employee structurally works more than the minimum number of hours. Please note the current zero-hours and min-max contracts will continue to apply to school kids and students with a side job.
2. Adjustment of chain rule
Under the law’s current chain rule, an employer is allowed enter into a maximum of three temporary contracts with an employee, if the respective contracts are not interrupted by more than 6 months and the total chain of contracts (including the interruptions) does not exceed 36 months. Upon conclusion of a fourth contract or once the 36-month period is exceeded, a permanent contract exists. If there is an interruption of more than 6 months between the temporary contracts, the chain of contracts starts again. The Minister SZW has proposed extending this break from 6 months to 5 years. The possibility to deviate from the chain rule by collective agreement will lapse.
3. Changes on broadcast
The aim is that phase A will henceforth continue for 52 weeks and phase B for 104 weeks. After this, the temporary agency worker will enter into permanent employment with the temporary employment agency. In addition, efforts will be made to limit the differences in working conditions of temporary workers compared to personnel employed by the hiring company, and there will be mandatory certification for temporary employment agencies.
4. Adjustment reintegration second year of illness
After an employee’s first year of illness, certain employers (<100 employees) can get clarity on the possible sustainable replacement of a sick employee. If this is the case, the ‘second track reintegration’ is set up, aimed at reintegration with another employer. Note: even if the first track will be closed in that case, the employer’s salary continuation and reintegration obligations continue.
5. Emergency provision for employers
There will be a Crisis Personnel Retention Scheme (CPRS), designed to support employers who face at least 20% loss of work due to temporary crises and calamities that fall outside the scope of regular entrepreneurial risk. If employees temporarily reduce their hours as a result, for instance, the employer can claim compensation