The Situation: On May 28, 2019 the Dutch Senate
adopted new legislation to bring the labor market into balance
effective 1 January 2020. The new legislation aims to reduce the
gap in legal protection and monetary differences between fixed- and
indefinite-term employed employees.
The Result: The new legislation includes
additional termination grounds, changes in statutory severance
payments, and extension of duration of fixed-term contracts to 36
months, amongst other legal protections.
Looking Ahead: Companies will need to consider
how this new legislation will affect their Dutch operations.
Only five years after the introduction of the
Dutch Work and Security Act, which overhauled Dutch dismissal law
significantly, Dutch employment law is undergoing additional
reforms. The legislative proposal for the Labor Market in Balance
Act (the "Act",Wet arbeidsmarkt in balans) will enter
into force on 1 January 2020. The Act aims to reduce the gap in
legal protection