PVV, VVD, NSC and BBB reach coalition agreement: what does this mean for employment and migration?
The political parties PVV, VVD, NSC and BBB have reached agreement on forming a coalition. This agreement, which will be elaborated into a government programme, sets the direction for various policy areas, including labour, migration and social security. Below are the main points.
Labour market: continuity and change
The new cabinet continues to focus on greater labour-market security, in line with the previous cabinet. Key laws such as the Clarification of the Assessment of Employment Relationships Act (VBAR) and the Placement of Workers Admission Act (WTTA) remain in force. In addition, steps are being taken to improve social security and tax arrangements, so that working pays off more.
On income and purchasing power, the tax burden on labour is being eased, and the healthcare deductible is being halved to EUR 165 in 2027. Measures are also being taken to improve debt assistance, and the overhaul of the childcare system is being continued.
Flexible work and labour migration: stricter rules
The bill on more security for flexworkers, which among other things aims to abolish the zero-hours contract, is still under development and is not yet addressed in the agreement. On labour migration, a stricter assessment framework will apply to new businesses setting up in the Netherlands, along with measures against unreliable temp-agency constructions. Non-EU labour migrants will in future need a work permit, and employers will become responsible for the nuisance and costs caused by labour migrants without proper housing.
Knowledge and study migration: tightened and restricted
The rules for knowledge migrants are being tightened, and study migration is becoming more selective, with stricter qualification requirements and a cap on the number of international students. The cabinet aims to keep the inflow of migrants in balance with the capacity of municipalities and services such as education and healthcare.
Restriction of transition-payment compensation after long-term illness
The budgetary annex to the coalition agreement states that compensation for employers who dismiss an employee due to long-term incapacity for work (after the two-year wage-continuation obligation ends) will be limited to small employers. From 1 July 2026, employers with 25 or more employees will no longer be able to apply to the UWV for compensation for the statutory transition payment on dismissal. This measure may raise questions about the equal treatment of large and small employers, and could encourage the continuation of “dormant” employment contracts.
Reform of unemployment benefit: possible extension of the notice period
The coalition is considering reforms to unemployment benefit (WW). One proposal is to shorten the maximum benefit period from 24 to 18 months. An alternative proposal is to extend the statutory notice period for employers, which would increase the cost of dismissal. These proposals still need to be worked out in further detail.
Specific sectors: innovation and workforce policy
For the agricultural sector, an innovation programme focused on robotics will aim to reduce reliance on labour. In healthcare, measures will be taken to make working in the sector more attractive, through better terms of employment, less administrative burden, clearer career prospects and greater autonomy.
Conclusion: key developments from the new coalition agreement
This coalition agreement between PVV, VVD, NSC and BBB sets the tone for significant changes to labour-market and migration policy. Employers and employees alike should prepare for new rules that will affect their rights and obligations.
Do you have questions about the key developments in the new coalition agreement? Please feel free to contact one of our employment lawyers, without obligation.
