Retrieved from Budget Day 2024 the Cabinet presented its plans for the coming year, and they include important changes that will affect companies with staff, especially in the temporary employment sector. These measures are aimed at increasing job security, reducing false self-employment and addressing labor market tightness. This article provides an overview of the main points and the implications for companies.
More permanent jobs, fewer bogus self-employed
The government wants to create more security for working people in the Netherlands and tackle false self-employment. This is being done through stricter rules for flexible contracts and the introduction of two new laws:
- Labor relations clarification and legal presumption act (Vbar)
- More secure flex workers act
The focus here is on encouraging permanent contracts, while making flexible contracts less attractive. For companies that employ temporary or flex workers, this means that there will be stricter rules for the use of these workers.
New legislation for flex workers
There will be a new law to increase the job security of flex workers, such as temporary, on-call and temporary workers. These workers will get more protection and clarity about their hours. For companies, this means that using flexible contracts will become less easy and attractive, and there may have to be a transition to permanent contracts to comply with the new rules.
In addition, the introduction of a so-called "basic contract" for flex workers, which would provide more certainty about the number of hours and length of the contract, is under consideration. Companies will have to prepare for this and may have to revise their personnel policies.
Stricter enforcement on false self-employment
As of Jan. 1, 2025, the tax authorities are going to enforce more strictly on false self-employment. This means that companies working with self-employed workers will have to look closely at the working relationships they have with these workers. The model agreements currently on the Tax Administration's website will disappear, and new rules will apply. Companies should prepare for this in good time to avoid fines and additional taxes.
Mandatory disability insurance (AOV) for self-employed workers
Another important measure is compulsory disability insurance (AOV) for self-employed workers. Although the implementation date is not yet known, it is important for companies working with self-employed workers to be aware of this obligation. This is because it may affect costs and contract terms when hiring self-employed workers.
WW premiums go up
Starting in 2026, Unemployment Insurance Act (WW) premiums will be increased. The low premium for permanent contracts will rise to 2.74 percent and the high premium for flexible contracts to 7.74 percent. This will make it more expensive to hire flexible workers, which may encourage companies to offer more permanent contracts.
Tightening up chain of custody rules
The chain rule, which determines after how many temporary contracts a permanent contract must be offered, will be further tightened. Currently, you must wait six months after three temporary contracts before you can offer another temporary contract. This may be extended to five years. For companies, this means they will be less likely to offer temporary contracts to the same employee, which may encourage permanent hires.
Package against labor market tightness
In addition to the changes in the area of flexible contracts, the government is working on a broader package of measures to combat labor market tightness. This package is based on five main lines: improving the quality of work, strengthening the economy, increasing productivity, boosting labor participation, and improving matching between job seekers and employers.
To improve that matching, there will be a equal opportunity development agenda. Employers are encouraged to recruit and select more objectively so that everyone has equal opportunities in the labor market. Companies can receive support to make their recruitment and selection processes more inclusive and fair.
What do these changes mean for your business?
For companies with staff, and especially those in the staffing sector, the plans of Budget Day 2024 will have a major impact. It will become more important to invest in permanent contracts and rely less on flexible contracts. Moreover, companies working with self-employed workers will have to closely monitor and possibly adjust their employment relationships to avoid penalties.
As an employer, it is important to stay abreast of upcoming legislation and adjust staffing plans accordingly. At JobPoint we are ready to support you in this process. Whether you're looking for flexible staff, permanent staff, or advice on the changing legal landscape, we'll help you make the right choices for your organization.
Take contact us for advice and find out how we can help your company in this changing job market!
