January, 2021 – The Netherlands – Certa Advocaten
THE MOST IMPORTANT EMPLOYMENT LAW CHANGES IN THE NETHERLANDS FOR 2022 AND THE CORRESPONDING REQUIRED ACTIONS!
To kick-start the new year, we provide you with a short overview of the most important developments in 2022 for Dutch Employment Law and actions required.
DIRECTIVE ON TRANSPARENT AND PREDICTABLE EMPLOYMENT CONDITIONS – AUGUST 1 2022
The Netherlands must implement this European directive into Dutch law by August 1, 2022. This directive aims to promote more transparent and predictable working conditions.
To do: Because this Act changes the regulations on, among other things, the study costs clause and the ancillary employment clause, we advise you to review your employment contracts in 2022.
UNEMPLOYMENT INSURANCE CONTRIBUTIONS (WW-premiums)
Since the introduction of the Labour Market in Balance Act (WAB), employers pay a low unemployment (WW) premium for permanent contracts and a high WW premium for flexible contracts. In 2022, the contributions will be slightly lower than in 2021.
In addition, pursuant to the WAB, an employer must pay the high premium retroactively if an employee with an open-ended employment contract for less than 35 hours a week has worked more than 30 percent overtime in a calendar year. This provision has been suspended due to COVID-19, because many employees had to work overtime due to the crisis. This suspension will end on 1 January 2022!
To do: Pay attention to employees who structurally work overtime with a fixed contract and a limited number of hours.
TAX-FREE HOME-WORK ALLOWANCE – JANUARY 1 2022
As of 1 January 2022, employers can provide their employees with a tax-free home working allowance of up to EUR 2 per day worked from home. The untaxed home working allowance can be provided on a declarative basis or on the basis of a fixed home working pattern. No untaxed home working allowance can be given on days when the employee already receives a travel allowance. Therefore, if an employee works part of the day at home and part of the day on location, he/she is eligible for either a tax-free home office allowance or a travel allowance.
To do: Ask your salary administrator or a payroll tax specialist to arrange this properly. Also think about adjusting the employment contracts or your personnel handbook.
PARENTAL LEAVE ALLOWANCE UNDER THE WORK ANDCARE ACT – AUGUST 2 2022
As of August 2, 2022, employees will be entitled to a parental leave benefit for 9 weeks when taking parental leave. They are then paid 50 % of their daily wage up to 50 % of the maximum daily wage. The paid parental leave must be taken in the child’s first year of life; after that, it is no longer possible. The remaining 17 weeks of the total 26 weeks of parental leave remain unpaid and can be taken until the child’s 8th birthday.
To do: Adapt your employment contracts or your personnel handbook accordingly.
MORE BALANCED MALE/FEMALE RATIOS AT THE TOP OF THE BUSINESS WORLD – JANUARY 1 2022
The Act on Balanced Gender Relations in Management and Supervisory Boards will enter into force on January 1, 2022. The aim of this Act is to make the ratio of men to women in the top ranks of large companies more balanced. The law introduces a growth quota and an obligation for large public and private companies to set appropriate and ambitious targets for the ratio of men to women on their boards.
To do: Large companies should set appropriate and ambitious targets and report accordingly.
WORK PERMIT FOR FOREIGN EMPLOYMENT ACT – JANUARI 1 2022
A work permit is currently valid for a maximum of one year. As of 1 January 2022, the maximum period will be three years.
HIGHER MINIMUM WAGE – JANUARY 1 2022
The minimum wage is adjusted every six months. As of 1 January 2022, the minimum wage for 21 years and older with full-time employment (usually 36 or 40 hours) is set at € 1,725 gross per month, € 398,10 per week and €79,62 gross per day. This is an increase of 1.41% per month.
INCREASING FLEXWORKERS PARTICIPATION IN WORKCOUNCILS
As of 1 January 2022, the regulations on employee participation are intended to be amended, as a result of which flex workers will be more involved in employee participation. The most important change is in the terms of active and passive voting rights of employees. As a result, employees are allowed to vote and stand for election to works councils after only three months. Temporary agency workers build up participation rights after 15 months instead of 24 months.
HIGHER RETIREMENT AGE – JANUARY 1 2022
The retirement age will rise in 2022 from 66 years and four months to 66 years and seven months.
If you have any questions or would like to update your employment agreements and personnel handbooks, we will be happy to assist.
Barbara Veldmaat Tijmen Martens