NETHERLANDS: Annual Update – Expected Labour Law Changes 2017
Transition fees on involuntary dismissal
Changes to the transition budget payable on dismissal:  The maximum transition fee due on dismissal rises from € 76,000 to € 77,000.  In addition, it is expected that as from January 1, 2018 and with retroactive effect until July 1, 2015, employers will be eligible to receive full compensation for transition fees they have paid to employees who have been ill or unfit for work for more than 2 years.
Effective from January 1, 2017
Action required: Companies are advised to keep track of any transition fees they have paid to employees who have been ill or unfit for work for more than 2 years, as these amounts may be reclaimable in due course.
Temporary staff
A recent Supreme Court decision:Â Â This decision means that payroll companies can now qualify as temporary employment agencies. Therefore staff employed through payroll agencies can be retained on a temporary basis for up to 5.5 years as opposed to the 2 years for regular employees.
Action required: As this makes hiring through payroll companies even more attractive, consider whether this is relevant to your business.
Minimum wage
Proposals to change the rules on the minimum wage:Â Â A proposal is being considered to (1) lower the age at which the adult minimum wage applies from 23 to 21 years, and (2) increase significantly the minimum wage for people aged 18 to 20 years. In addition, it is proposed that minimum wage rights will apply to anyone who performs work for another, unless the work is performed by a professional party on the basis of a services agreement.
Expected in 2017
Action required: None at present. Keep track of the current legal situation.
Employers right to deduct amounts from the minimum wage:Â Â Provided the employee has given a written power of attorney, employers may deduct from the minimum wage housing costs up to a maximum of 25% of the minimum wage, and costs for health insurance.
Effective from January 1, 2017
Action required: Companies are advised to check that any deductions they make from the minimum wage are in compliance with the new legislation.
Health and Safety
Working Conditions Act:Â The government proposes that company doctors will be required to provide employees with a second opinion, if requested by the employees, in relation to health and safety matters. In addition, it is proposed that works councils will have a right of consent on the choice and location of the health and safety officer within the company.
Expected in 2017
Action required: None at present, but keep track of the current legal situation.