The Dutch 'work and social security' act
DO YOU KNOW ALL THERE IS TO KNOW ABOUT THE DUTCH ‘WORK AND SOCIAL SECURITY’ ACT?
The purpose of the Dutch work and social security act (Wet werk en zekerheid) is clear: to contribute to a good labour market and improve social security. After all, a labour market that operates properly is a basic requirement for economic growth. A social contract was agreed upon in April 2013, which then led to the full act. This act deals with matters such as flexible worker law, dismissal law, and unemployment law.
FLEXIBLE WORKER LAW
This Act helps strengthen flexible workers’ positions. As a result, their position is no longer so very different from that of workers with a permanent employment contract. As the secondment agency involved, we come to a clear and proper agreement at the start of the work, which clears you, the client, of all of the risks involved with people in paid employment, such as having to continue to pay wages in case of illness.
DISMISSAL LAW
As of 1 July 2015, dismissal law has been made easier, quicker, and less expensive for employers. How? There is now only one possible dismissal procedure. Employees are entitled to transitional compensation if they have been employed for 2 years minimum and their contract was terminated at the employer’s behest. The exact amount of the compensation fee depends on the duration of the employment. And just to be clear: all this only applies to staff that is employed by you directly, not hired from elsewhere.
WW, DUTCH UNEMPLOYMENT LAW
The Dutch government has started gradually cutting the maximum duration of Dutch unemployment benefits as of 1 January 2016. The aim is to bring it back to 2 years maximum by 2019. The way benefits are collected has also been restructured. Previously, employees used to collect 1 month’s worth of unemployment benefits for each year of work during their first 10 years of employment. This number will have been brought back to just half a month for each year of employment by 2019.
YOUR DAILY BUSINESS OPERATIONS
All of these rules, changes, and exceptions, for permanent staff on the one hand, and staff on secondment basis on the other… All of this is relevant to you in your daily business operations. Rest assured that you are working with a partner who knows exactly where things stand. If you are looking for more information, or have any questions, please contact us via 078 632 68 68 or send an email to dordrecht@inaxtion.com.
