Update new legislation – The changes as of 1 January 2016
Table of content
- Labour Market Fraud Act
- Working Beyond State Pension Age Act
- Act on Flexible Work
- Unemployment Insurance Act
- Daily wage
- Transitional payment
- State Pension Age Act
- Highly skilled migrants
- Privacy
- Labour Market Fraud Act
As of 1 July 2015, the Labour Market Fraud Act (in Dutch: “Wet Aanpak Schijnconstructies”) was introduced and certain parts thereof will enter into force as of 1 January 2016:
| Subject | As of 1 July 2015 | As of 1 January 2016 |
| Information-exchange | Inspectorate SZW can pass on suspicions of evasion of Collective Bargaining Agreements (CBA) to private CBA-enforces and/or trade unions and employers’ organizations. | |
| Publication details research | As of 1 January 2016, research details of the Inspectorate SZW with respect to the Minimum Wage and Minimum Holiday Allowance Act, Foreign Nationals (Employment) Act and Placement of Personnel by Intermediaries Act. | |
| Extension order declaring a Collective Bargaining Agreement (CBA) binding | If a CBA is extended unchanged, the order declaring a CBA binding, an order can be extended for the same period (max. 1 year) at the request of CBA-parties. | |
| Vicarious (chain) liability | All clients in a chain can in principle be held liable for the overdue salary, if there is underpayment of an employee who factually lives in the Netherlands and agreements for the provisions of services/contracting work are being used in the chain. | |
| Payment of salary | Obligation to pay out the net due statutory minimum wage by bank transfer (note: this does not apply for the minimum holiday allowance). Cash payment is not allowed, subject to payment of a financial penalty. | |
| Settlement and deduction | Settlement with or deducting from the minimum wage is no longer possible. *Recently, the implementation of this prohibition has been delayed until 1 July 2016. | |
| Salary slip | Obligation to specify expense allowance and the amount thereof on the salary slip. |
- Working Beyond State Pension Age Act
As of 1 January 2016, the Working Beyond State Pension Age Act (in Dutch: “Wet werken na de AOW-gerechtigde leeftijd”) will enter into force. This act will likely make it attractive for employers to hire persons who have reached the state pension age or let them continue to work after reaching this age. This act consists of the following parts, the below scheme outlines the most important changes:
| Subject | Until 1 January 2016 | As of 1 January 2016 |
| Notice period | Statutory or agreed upon notice period. | Notice period of 1 month. |
| Provisions on succession of fixed-term employment contracts | 1. maximum duration of 24 months
2. maximum of 3 fixed term contracts 3. interruption (chain) of 6 months. |
1. maximum duration of 48 months
2. maximum of 6 fixed term contracts 3. no change. |
| Minimum wage | Minimum Wage and Minimum Holiday Allowance Act does not apply. | Minimum Wage and Minimum Holiday Allowance Act is applicable. |
| Adjustment working hours | Act on the Adjustment of Working Time (as of 1 January 2016: Act on Flexible Work) does apply. | Act on Flexible Work does not apply. |
| Illness | 1. 104 weeks of continued payment of wages, reintegration and prohibition of termination
2. plan of action and “second track” re-integration (i.e. re-integration outside of company, usually after 1st year of illness) 3. remedy period of 26 weeks in case of illness and dismissal (dismissal is not possible if such a remedy period). |
1. 13 weeks of continued payment of wages, re-integration and prohibition of termination* until 2018 a period of 13 weeks applies and thereafter a period of in principle 6 weeks applies
2. no plan of action and limitation to “first track” re-integration (i.e. re-integration inside the company) 3. remedy period of 6 weeks in case of illness and dismissal. |
Please note: a transitional law applies for employees who will reach the state pension age in 2016.
- Act on Flexible Work
As of 1 January 2016, the Act on the Adjustment of Working Time (in Dutch: “Wet Aanpassing Arbeidsduur”) will undergo a name change and will be called Act on Flexible Work (in Dutch: “Wet Flexibel Werken”). The right to adjust the workplace, including working at home, will be laid down in the law, but it will not be absolute. Also, the employer will be able to revise an adjustment of the working hours, working time and working place afterwards in case of changed circumstances.
| Subject | Until 1 January 2016: Act on the Adjustment of Working Time | After 1 January 2016: Act of Flexible Work |
| Scope law | Working time. | Working timeWorking hoursWorkplace (including working at home). |
| Applicable to all employers? | No, not if the employer has less than 10 employees (in case of a decrease of working time, adjustment of workplace of working hours). | No change. |
| How long does the employee has to be in service before making the request? | At least 1 year. | At least 26 weeks. |
| What are the timing requirements for the request? | At least 4 months before the intended start date. | At least 2 months before the intended start date and the employer decides at least 1 month for the start date. In case the employer does not respond in time, the working hours and working time will be adjusted in accordance with the request of the employee. |
| How often can a request be made? | Once every 2 years (as of 1 January 2015). | Once every year. |
| Ground for refusal | Working time: severe business reasons. | Working time: no changeWorking hours: severe business reasonsDistribution working time/working hours: reasonableness and fairnessWorkplace: no statutory ground (in principle it is always possible). |
| Revise adjustment | Not applicable. | Working time, Working hours and Workplace: revised interests or circumstances. |
- Unemployment Insurance Act
As of 1 January 2016, as part of the implementation of the Work and Security Act (in Dutch: “Wet Werk en Zekerheid”), amongst others the duration, amount and accrual of unemployment benefits will change under the Unemployment Insurance Act (in Dutch: “Werkloosheidswet”):
| Subject | Until 1 January 2016 | After 1 January 2016 |
| Maximum duration | 38 months. | 24 months, plus a possible supplement on the basis of a settlement agreement, CBA or social plan. |
| Amount | First two months 75% and thereafter 70% of daily wage. | No change. |
| Accrual | 1 year employment history is equal to 1 month unemployment benefits. | For the first 10 years 1 year employment history is equal to 1 month unemployment benefits and thereafter, 1 year work experience is equal to 0.5 month unemployment benefits.* The service years until 1 January 2016 will be calculated in the manner used until 1 January 2016 and as of 1 January 2016 the new rule for calculation of accrual of unemployment benefits applies. |
| Appropriate alternative labour | After 1 year all labour is appropriate (note: in order to stay entitled to unemployment benefits, the person has a job-search requirement). | As of 1 July 2015, all labour is appropriate after 0.5 year. |
| Setting off income | (as a rule) setting off hours (note: it is possible to work part-time and still receive part of the unemployment benefits). | Setting off income as of the first day the person receives unemployment benefits. |
- Daily wage
As of 1 January 2016, the maximum daily wage (for social security purposes) is EUR 202.17 gross.
- Transitional compensation
As of 1 January 2016, the maximum transitional compensation will be increased from EUR 75,000 to EUR 76,000 gross.
- State pension age
In 2016, the state pension age will shift to 65 years and 3 months.
- Highly skilled migrants
As of 1 January 2016, the income criteria for highly skilled migrants are:
| Category highly skilled migrant | Gross monthly salary (excl. 8% holiday allowance) |
| 30 years or older | EUR 4,240 |
| 29 years or older | EUR 3,108 |
| Students graduated in the Netherlands | EUR 2,218 |
| Blue Card holders | EUR 4,968 |
- Privacy
Effective 1 January 2016 the Law on Data Breach Notifications (in Dutch: “Wet Meldplicht datalekken en uitbreiding bestuurlijke boetebevoegdheid Cbp”) will come into force. A company will be obliged to notify the Dutch privacy authority and the affected persons of security breaches with consequences for the protection of personal data. The notification obligation is subject to a penalty, which will be a maximum of EUR 800,000 or 10% of the net annual turnover of the company in the preceding year.
The above-mentioned penalty will apply for all breaches of the privacy law (Dutch Personal Data Protection Act) and is therefore not only applicable to the notification of security breaches.
The Dutch privacy authority will undergo a name change and will be called the Data Protection Authority (in Dutch: “Autoriteit Persoonsgegevens”).
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If you have any questions regarding the above, please do not hesitate to contact Martine Hoogendoorn (m.hoogendoorn@denklaw.nl) or Rachid Aolad-Si M’hammad (r.aoladsi@denklaw.nl).