Minister Van Gennip shares plans for a future-proof labor market | news item

News item | 05-07-2022 | 16:19

This letter describes the course that has been taken towards a future-proof labor market. This letter also sets out the steps that are being taken to give workers more security within agile companies. The letter also contains steps and measures that will ensure a more level playing field between employees and the self-employed, with more clarity about when work is done as an employee or self-employed.

The functioning of the labor market is important for people individually, but the labor market is also an important hub for society as a whole. However, a labor market that makes a positive contribution to society can no longer be taken for granted. In many cases, investing in good quality work and people has been left out of the picture. Too many people find themselves in a bind, are uncertain about their income or individually bear more risks, for example if they are not insured for illness. Important recommendations such as those of the Borstlap Committee, the Scientific Council for Government Policy (WRR) and the SER mid-term and long-term advice have recently pointed to this. These recommendations also indicate that, in addition to trends such as aging and globalisation, policy choices and regulations are a cause of the problems in the labor market. They also argue that a solution can only be found through a holistic labor market approach.

Minister Van Gennip notes that the problems mentioned cannot be solved by themselves, they require interventions from, and standardization by, the government. Together with workers, employers and entrepreneurs, the cabinet is therefore working on a future-proof labor market along 5 themes:

• Encouraging sustainable employment relationships within agile companies and better regulation of temporary contracts and triangular relationships.
• A more level playing field between employee and self-employed, more clear and payable rules and enforcement .
• Always a prospect of new work (through lifelong development and a good labor market infrastructure).
• Adjustments in the disability legislation (WIA).
• Join the grassroots of the labor market.

The various sub-topics will be further elaborated in the coming months. The first 2 themes in particular are further explained in the letter on the main features of the labor market.

Sustainable employment relationships

In order to offer employees with flexible contracts more security, the government states that structural work is in principle organized on the basis of employment contracts for an indefinite period, in line with the SER’s principle. This is also to achieve more sustainable employment relationships. That is why the following four measures are being developed:

• On-call contracts and min-max contracts will disappear in their current form and will be replaced by basic contracts, so that there will be more job security and roster security.
• Temporary employment contracts are further regulated so that the position of temporary workers is improved. There must also at least be equivalent employment conditions with regard to the employees who are directly employed.
• Successive temporary contracts (revolving door flex) are prevented by removing the break in the chain. A separate arrangement for seasonal work is being investigated.
• A labor committee to improve access to justice, this is an elaboration of the Roemer committee.

Agile companies

In the future too, entrepreneurs will need ways to deal with fluctuations and innovations. It is important here that this agility does not automatically come at the expense of the security of employees. The government is therefore working out measures with the social partners that will ensure that sustainable employment relationships and the agility of companies go hand in hand. These measures are complex; At the beginning of 2023, the following measures or alternatives will be further elaborated to make entering into sustainable employment relationships more attractive.

• Promoting that employees are guided from work to work after termination of the employment contract.
• Part-time unemployment.
• Improving the scheme for continued payment of wages in the event of illness by focusing on returning to another employer in the second year.

Level playing field between contract types and clearer rules

Independent entrepreneurs make an important contribution to the Netherlands. Working as a self-employed person can also increase happiness at work. But there are also negative sides to the strong growth in the number of self-employed people, for example when it comes to forced self-employment and bogus self-employment. The government wants to provide an adequate level of protection for all workers, combat unfair competition on employment conditions, ensure solidarity within social security and the tax system and improve legislation and regulations so that there is more clarity about contract types. This cabinet term will therefore be:

• Deployed on a more level playing field between contract types. This is partly due to the introduction of disability insurance for the self-employed, options to build up a pension for the self-employed and limitation of the self-employed person’s deduction.
• This also includes opportunities for collective bargaining and a more solid place in the SER for self-employed workers.
• Provided more clarity about when work must be done by an employee or may be performed by a self-employed person. In particular, the concept of ‘authority’ will be clarified; there will also be a so-called legal presumption. This means that from now on the employer must provide proof that there is no employment relationship. Instead of the worker having to prove that there is an employment relationship.
• Improved supervision and enforcement of bogus self-employment, whereby the enforcement moratorium will be abolished by 1 January 2025 at the latest.