This bill forms the first major component of the so-called labour market package, and aims to strengthen the position of flexible workers in the labour market. The intended effective date is 1 January 2027, with some elements possibly taking effect as early as 1 January 2026. Three concrete measures are proposed.
Abolition of zero-hours contracts
The familiar zero-hours contract will disappear and be replaced by so-called bandwidth contracts. Under this type of contract, employer and employee agree a minimum and maximum number of hours, with the bandwidth allowed to be a maximum of 30%. With a minimum of 10 hours, this means a maximum of 13 hours. Employees may refuse call-ups above the maximum limit. If structurally more hours are worked than agreed, the employer must offer a contract with a higher number of hours. An exception applies for young people under 18, pupils, and students, who can still work under call-off contracts.
Changes for agency workers
Agency workers will be entitled to the same employment conditions as regular employees, including equal pay and terms, through an amendment to Section 8 of the Placement of Personnel by Intermediaries Act (Waadi). The so-called phase structure in agency work is also being tightened. Phase A will be shortened from 78 to 52 weeks. Phase B will be shortened to two years, with a maximum of six contracts. In Phase B, agency workers have more rights and protection. After Phase B, they receive an indefinite-term contract and rights equal to those of a regular employee. The chain of temporary agency workers is thereby limited to three years instead of 5.5 years.
Amendment to the chain-contract rule
Temporary contracts may only be used for work of a temporary nature going forward. The current six-month break required between temporary contracts will be significantly extended to five years (60 months). The aim is for employees to obtain a permanent position more quickly after a temporary contract. The ability to make exceptions to the chain-contract rule in collective labour agreements will also be restricted.
What does this mean for your business?
If this bill is passed by both the House of Representatives and the Senate, employers will face significant changes to their personnel policy. It is therefore advisable to review employment contracts in good time and identify the risks and opportunities in advance. Our employment lawyers are happy to advise you on the steps to take.
