A new year brings new legislative changes. In 2024 too, several changes are taking effect in employment and corporate law. These changes mainly strengthen the position of the employee. The mandatory CO2-emissions reporting for employers is also worth mentioning.
This overview sets out the key legislative changes for employers.
From 1 January 2024
Minimum Wage and Minimum Holiday Allowance Act amended
On 1 January 2024, the amendment to the Minimum Wage and Minimum Holiday Allowance Act introduced a statutory minimum hourly wage for every employee. As a result, fixed minimum monthly, weekly and daily wages disappear. Since 1 January, employers have been required to pay employees aged 21 and over at least the minimum hourly wage of EUR 13.27. This applies across all sectors. The introduction of the minimum hourly wage will require many CLA and contract provisions to be adjusted.
Increase in the maximum transition payment
Where the maximum transition payment stood at EUR 89,000 in 2023, it rose to EUR 94,000 gross as of 1 January 2024. Where an employee’s salary exceeds this amount, the maximum transition payment may not exceed one gross annual salary.
Whistleblower Protection Act
The Whistleblower Protection Act took effect on 1 January 2024. This law amends the previous Whistleblower Authority Act. A whistleblower is someone who raises the alarm – internally within their own organisation, or externally with a competent authority – about a (suspected) wrongdoing. Under the Whistleblower Protection Act, for example, the burden of proof now lies with the employer rather than the person reporting, stricter requirements apply to the internal reporting procedure, and a wrongdoing no longer needs to be reported internally first.
From 1 July 2024
Tracking employees’ CO2 emissions
As of 1 July 2024, employers with more than 100 employees are required to report on their staff’s business and commuting travel. “Employee” here means anyone with an employment contract of more than 20 hours. The report must include, among other things, the annual number of kilometres broken down by mode of transport and fuel type, as well as the total number of kilometres travelled by employees for business and commuting purposes.
No fixed start date yet
Unemployment insurance premium and overtime
If an employee has worked and been paid more than 30% overtime relative to their contracted hours, the employer may owe the higher unemployment insurance (WW) premium. Currently, an employee’s contract must not exceed 35 hours per week for the higher WW premium to apply. This threshold will be lowered to 30 hours per week.
Delay to transition-payment compensation for business closure due to illness
To date, small employers – companies with fewer than 25 employees – still cannot apply for compensation for the transition payment owed on closing a business due to illness. This scheme has already been postponed several times, as a workable implementation has not yet been found.
Reform of the non-compete clause
The rules on the non-compete clause are due to be reformed. It should be clearer in advance when an employer may include and invoke a non-compete clause. This restrictive clause, intended to protect the employer’s interests, is currently often used without proper justification.
Wondering what these legislative changes mean for you?
Please contact one of Sørensen Advocaten’s employment lawyers. Call: +31 (0)10-2492444.
