Contract onbepaalde tijd 2020: Changes and Impact on Employees
In the Netherlands, the contract onbepaalde tijd (permanent contract) is the most desirable form of employment for most employees. This kind of contract, which has no end date, provides job security and stability to the workforce. However, recent changes in the Dutch labor law are likely to impact employees who have a contract onbepaalde tijd.
In 2020, the Dutch government introduced new labor laws that will have significant implications on the employment contracts of millions of workers in the country. The new law aims to provide better labor market conditions for employees, especially those on permanent contracts.
The most significant change is the introduction of the so-called ‘cumulative dismissal ground.` Previously, if an employer wanted to terminate an employee contract, they needed to demonstrate that there was sufficient evidence of underperformance or misconduct. However, under the new law, an employer can accumulate multiple reasons and use them as grounds for dismissal. This makes it easier for employers to dismiss an employee on a permanent contract.
Another change in the law is the flexibility of the transition payment. Earlier, employers had to pay compensation to employees depending on their length of service in case of termination. However, under the new law, the compensation will be lower for employees who have been in service for less than ten years, and there will be no compensation for employees who earn more than €83,000. This may cause employees to think twice before accepting a permanent contract, knowing that the transition payment is not guaranteed after ten years.
Furthermore, the new labor laws also aim to increase job security for employees on permanent contracts. Employers will now be responsible for providing an opportunity for permanent employees to apply for internal vacancies, and they need to justify why a permanent employee was hired above an external candidate. This will help to ensure that permanent employees have access to career development opportunities.
All these changes in the Dutch labor laws will have a significant impact on employees who have a contract onbepaalde tijd. While employers have more flexibility in terminating contracts, the new laws also provide more job security for permanent employees. Employees who have a permanent contract but are at risk of being dismissed should seek legal advice to know their rights and protect their interests.
In conclusion, the new labor laws in the Netherlands may seem like a double-edged sword for employees on a contract onbepaalde tijd. While there may be some benefits and concerns, it is essential to stay informed and aware of these regulations to navigate the employment market better. Employers and employees alike can benefit from understanding and following these new laws, leading to a more harmonious and productive work environment.
