News item | 03-04-2023 | 09:57
Minister Karien van Gennip (Social Affairs and Employment) today sent a package of related measures for the labor market to the House of Representatives. This package ensures that people have more certainty about their income and their schedule and that the self-employed feel better protected in the event of adversity. At the same time, the measures lead to more flexibility for entrepreneurs. This makes being a good employer more attractive and makes it easier for companies to respond to changes in their environment.
There have long been concerns about the functioning of the labor market. The whole set of rules, insurances, rights and obligations leads to too many workers who have precarious work and therefore an uncertain income. Employers, in turn, do not experience enough agility to respond to changes. The Borstlap committee, the Scientific Council for Government Policy and the Social and Economic Council, among others, pointed this out and gave advice on this. The SER advice for the medium term formed the basis for the coalition agreement. Together with the trade unions and employers’ organisations, the government has now made agreements about a coherent package of measures to ensure a future-proof labor market.
Minister Van Gennip: ,,I really appreciate that we were able to make these important agreements with employers and employees. Security in your job ensures that you know when you work, that you know that you can make ends meet next month and that you can make plans for the future. Too many employees with a flexible contract or self-employed do not have that certainty. At the same time, small entrepreneurs in particular are hesitant to employ people on a permanent basis. This has to be different. This package of measures ensures a labor market that is better balanced, future-proof and, moreover, we maintain mutual solidarity.”
More security for workers
A (permanent) contract is the starting point for structural work. That is why workers with an on-call contract will from now on receive a fixed basic contract for the number of hours for which they are scheduled as a minimum. This way employees know better where they stand. We will ban zero-hour contracts. Those who work through an employment agency will get a contract faster with more certainty. The rules for temporary contracts are also becoming stricter, so that temporary work is actually used temporarily. After three consecutive temporary contracts with the same employer, a new contract may only be given after five years instead of six months. For example, we are putting an end to revolving door constructions, in which workers go from temporary contract to temporary contract for a long period of time. There will be compulsory, affordable disability insurance for the self-employed, so that they have a safety net if they become disabled.
More agility for entrepreneurs
It is very important that entrepreneurs have the space to do business. Small companies in particular are less agile if one of the employees unexpectedly falls ill for a long time. These employers now remain uncertain for a long time whether a sick employee will return, as a result of which they cannot take on a (permanent) replacement for a long time. That is why small employers can get clarity after one year of illness of an employee about whether they can structurally replace an employee. There will also be a Crisis Scheme for Personnel Retention for employers affected by a crisis or calamity that falls outside the entrepreneurial risk (such as the corona crisis). For a maximum of 6 months, employees can temporarily work elsewhere in the company or temporarily work less while retaining their unemployment benefit rights. In this way, the employee retains a job and income and the employer can bridge the crisis period. In addition, the costs in the unemployment insurance premium for overtime are limited for large permanent contracts. The fixed basic contract will also fall under the low unemployment insurance premium.