The incoming government, consisting of the coalition parties PVV, VVD, NSC, and BBB, has – after quite lengthy deliberations – agreed on the outline agreement ‘HOPE, COURAGE AND PRIDE‘. This 28-page outline agreement covers the period 2024 – 2028 and, compared to previous agreements, is very limited regarding labour market measures. Notably, several changes are proposed in the area of labour migration. We have listed the plans related to employment law below.
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Labour market
- The coalition parties aim to encourage more security in the labour market, particularly for self-employed workers (zzp’ers) through the self-employment policy and regulation of the temporary employment sector. Additionally, they seek to increase the number of permanent contracts for employees. To this end, the legislative debate on the “Clarification of Assessment of Employment Relationships and Legal Presumption Act” and the “Law on Admission for the Posting of Workers” will continue.
- Tackling staff shortages in the care sector is a high priority. The intention is to make working in the care sector more attractive through increased autonomy, career perspectives, good working conditions, and reduced regulatory and administrative burdens. It is encouraged that employees are given priority in scheduling.
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Labour migration.
Labour migration remains essential for the Dutch economy. However, the government plans to impose tougher requirements on both (international) employees and employers.
- Qualification requirements for the highly skilled migrant scheme will be tightened and increased.
- Labour migrants from outside the European Union, excluding highly skilled migrants, will become subject to a work permit requirement (which is currently not the case). The Dutch Labour Inspection will also increase enforcement on this group.
- Employers of migrant workers will be responsible for the nuisance and costs associated with migrant workers who lack regular housing. They must make agreements with the municipalities where their employees are housed. Authorities are encouraged to allow more housing on the employer’s premises.
- For long-term residents, employers will be responsible for ensuring these employees learn the Dutch language.
- The recommendations of the Aanjaagteam Bescherming Arbeidsmigranten (Roemer report) will be implemented.
- Unscrupulous temporary employment schemes will be tackled forcefully. Temporary employment and recruitment agencies will be regulated through an admission system based on the Law on Admission for the Posting of Workers.
- It is under consideration whether and to what extent tax benefits under the extraterritorial expenses scheme (ETK scheme) will be reduced. This may lead to further restrictions on the 30% rule.
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Reforming unemployment benefits (“WW”)
- There is an intention to reform the WW. This could include extending the notice period in employment contracts, introducing a gatekeeper test for WW, and/or limiting the WW duration to a maximum of 18 months.
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Wages
- Working more should result in higher earnings. A tax relief on labour is proposed, focusing specifically on middle-class workers. There are plans to introduce an additional income tax bracket.
- Government wages will no longer be indexed.
- General Unemployment Fund (“AWF”) premium will be increased.
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Expiry of compensation transitional allowance
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- The intention is to limit the compensation of the transition allowance after termination of the employment contract due to long-term disability to small employers (25 employees) from 1 July 2026. From this date onwards, all other employers will no longer receive this compensation.
Conclusion
It appears that not many plans related to employment law have been included in the outline agreement. We are curious to see which intentions will actually be implemented. In the coming months, these plans will be detailed by the incoming government, with the new ministers playing a significant role in this process. We will monitor developments closely and, of course, keep you informed.
