Budget Day 2024 – what is changing for employers
On Tuesday 17 September 2024, the King presented the government’s policy plans for the coming year, based on the coalition agreement of the Schoof cabinet. In this article, we set out the key employment-law bills to watch. For employers, it is wise to anticipate possible changes, although actual implementation may still take some time.
Clarification of the Assessment of Employment Relationships and Legal Presumption Bill (Vbar)
This bill is intended to clarify when someone may work as a self-employed contractor and when an employment relationship exists instead. Part of the bill has already been scrapped, and the Council of State is currently reviewing what remains. It is uncertain whether the law will be introduced in its current form.
More Security for Flexworkers Bill
This bill includes, among other things, a tightening of the chain-contract rules, an improved position for on-call and agency workers, and a “basic contract”. Under this basic contract, zero-hours contracts would be converted into a permanent contract for structural work. This proposal, too, has faced considerable criticism, and its future remains uncertain.
Proposal to tighten the chain-contract rules
Currently, an employer must wait six months after three consecutive fixed-term contracts before offering another fixed-term contract instead of a permanent one. The cabinet intends to extend this waiting period to five years.
Bill amending reintegration obligations in the second year of illness
Small and medium-sized employers will be able to opt for “second-track” reintegration from the start of an employee’s second year of illness. This means the employee starts working for another employer, either with the employee’s consent or with UWV approval, while the first-track reintegration obligation lapses. This bill would give employers earlier clarity on the possibility of replacing a sick employee. It is not yet known whether this proposal will be adopted in its current form.
Non-compete clause
New legislation on the non-compete clause is being developed. Currently, the clause is often used to curb staff turnover. The changes will primarily concern its duration and geographic scope.
Abolition of transition-payment compensation
Until 1 July 2026, employers with 25 or more employees receive compensation for the transition payment owed when dismissing an employee who has been sick for two years. After that date, this compensation will only apply to small employers with a maximum of 50 employees.
Mandatory confidential adviser
The start date for this rule is not yet known, but companies with ten or more employees are expected to be required to appoint a confidential adviser. This can be someone from within the company, or someone provided through an industry association or occupational health service. If you have not yet appointed a confidential adviser, it is advisable to start preparing.
Wondering what these developments mean for you?
Please feel free to contact one of Sørensen Advocaten’s employment lawyers, without obligation. Call: +31 (0)10-2492444.
