Last week was Budget Day, bringing plans relevant to employers and employees:
- Narrowing the gap between permanent and flexible work.
- Training through the STAP budget;
- The right to transition-payment compensation for small employers closing their business due to retirement or death;
- Widening parental leave;
- Various allowances for working from home;
- The 30% overtime reassessment rule back in force in 2022;
- Return-to-Work Fund (Whk) premium;
- Lower benefit-in-kind rate for electric cars;
- COVID support packages not extended.
Narrowing the gap between permanent and flexible work
For some time now, the cabinet has been working to narrow the gap between permanent and flexible work. The Balanced Labour Market Act (WAB), effective 1 January 2020, was a first step towards closing that gap. The WAB’s aim was to make permanent contracts more attractive for employers. This has not proven sufficient, as set out extensively in the report “What Kind of Country Do We Want to Work In” by the Committee on the Regulation of Work (better known as the Borstlap Committee). The cabinet’s objectives build on that committee’s recommendations.
The Pension Agreement includes commitments to introduce a mandatory public disability insurance scheme for all self-employed workers, alongside a scaling-back of the self-employed deduction. Experimental legislation for the new pension system will also be developed, giving pension funds room to bring new products to market for the self-employed.
Training
Employees change careers more often nowadays. The cabinet aims for a system where, on changing jobs, the focus is on an employee’s skills rather than the specific tasks they previously performed. To that end, the cabinet will invest in (re)training people, including through the SLIM scheme, which provides funding to SMEs wanting to invest in training. From 2022, training will also be supported through the STAP budget (EUR 900 million). Finally, the “NL leert door” subsidy scheme will allow people to follow training courses free of charge. For more information, see page 12 of the budget memorandum.
Transition-payment compensation for small employers
Since 2021, small employers have, under certain conditions, been entitled to compensation for the transition payment owed when closing their business due to retirement or death. The aim was to make this compensation available for business closures due to illness too, but that will now happen at the earliest in mid-2022.
Widening parental leave
From August 2022, the cabinet will partially pay parental leave. The reason for this widening is to create room for people to choose how they want to combine work and care, according to the cabinet. Under the scheme, nine weeks of parental leave will in future be partially paid.
Home-working allowance
The cabinet is introducing new arrangements for working from home. A targeted exemption has been introduced for reimbursing home-working costs. This exemption allows a tax-free allowance to be given to employees who incur costs by working from home. Based on research by Nibud, a flat-rate amount of EUR 2 per home-working day has been proposed. This allowance can also be applied where an employee only works from home part of the day.
This exemption cannot be used alongside the travel-expense exemption on the same day. Only one exemption (tax-free home-working or travel allowance) can be applied per day, even if an employee works part of the day from home and part in the office.
30% overtime reassessment rule back in force in 2022
In 2020 and 2021, because of the coronavirus crisis, employers did not have to retroactively pay the higher unemployment insurance premium for employees who had worked more than 30% overtime in a calendar year. Sectors requiring a lot of overtime, such as healthcare, therefore avoided the adverse effects of this “30% overtime” reassessment rule. From 2022, however, the rule will apply again.
Return-to-Work Fund (Whk) premium
Averaged across all sectors, the Return-to-Work Fund (Whk) premium will rise to 1.52% in 2022. This fund pays benefits for employees who are partially unfit for work or ill.
Lower benefit-in-kind rate for electric cars
From 2022, the maximum list-price cap for the electric-car benefit-in-kind rate will be lowered in two steps. The 6% discount on the benefit-in-kind rate, effective from 1 January 2022, will apply to a cap of EUR 35,000, and from 2023 to a cap of EUR 30,000. This keeps cheaper zero-emission cars attractive for the business market and aligns better with the second-hand private market.
COVID support packages not extended
As of 1 October 2021, the general COVID support package lapses. A number of supporting schemes do remain in force in the fourth quarter of 2021. For example, the cabinet has freed up additional funds for guidance into new work and support for young people looking for work.
Questions about the above?
Please contact one of Sørensen Advocaten’s employment lawyers. Call: +31 (0)10-2492444
