From 1 January 2020 employees will have the right to a transition payment from the first day of employment. At this time the right only arises after employment of at least 2 years.
Changes in employment law with effect from 1 January 2020: unemployment insurance contribution differentiation
The government envisages with the Balanced Labour Market Act to encourage the entering into of permanent employment contracts. By means of levying a lower unemployment insurance contribution for permanent contracts and a higher unemployment insurance contribution for all other employment contracts, the legislature expects that it will become more attractive for employers to offer permanent contracts.
A new ground for dismissal, called the cumulation ground, is introduced as part of the Balanced Labour Market Act (in Dutch: WAB). If the employment contract is terminated on the basis of the cumulation ground, a higher transition payment might be owed.
With payrolling we encounter three different parties: 1) the party where the payroll employee is formally employed (the payroll employer), 2) the party where the payroll employee actually works (the contractor/employer) and 3) the payroll employee.
With effect from 1 January 2020, employment law will be amended in some respects as a result of the Dutch Balanced Labour Market Act (Wet arbeidsmarkt in balans). This includes amendments in respect of on-call workers. On-call workers include employees working on the basis of a zero-hours contract or a 'min-max' contract (meaning a contract with variating working hours between a minimum and a maximum). The legislator wants to strengthen their legal position because they face (too) much uncertainty about their income due to the varying working hours.
The chain rule stipulates when successive, temporary employment contracts are converted into an employment contract for an indefinite period of time. At the moment this is the case when more than three temporary employment contracts succeed each other or if the duration of the successive contracts exceeds a period of two years. With the introduction of the Balanced Labour Market Act (Wet arbeidsmarkt in balans) this latter period has been extended from two to three years.