Changes to labour laws in 2016

By: Together Abroad 02-12-2015 2:21 PM
Categories: * Daily employment news, ** HR Legal Clinic,

What legislative changes need to be considered in 2016? Here is an overview of a number of changes in employment in the pipeline for 2016.

Maximum duration of unemployment shortened

The maximum duration of entitlement to unemployment benefit is determined by the accumulated work history. Under the WWZ, the maximum duration of unemployment as of January 1, 2016 will gradually reduce from 38 to 24 months. During the first ten years of the current structure, the distribution will be maintained. This translates to one month of unemployment benefits per year of employment history. For subsequent years, every year under employment will lead to longer duration of unemployment benefits by a half month. The employment that employees have accrued before 2016 is respected. If the length of employment on January 1, 2016 is more than 24 years, there is a possibility of a gradual reduction in the unemployment duration until the new maximum of 24 months. All this applies to new benefits that arose on or after 1 January 2016. People who face unemployment before January 1, 2016 are not affected by the reduction until they resume work. 


Maximum transition fee increases

Article 7: 673 paragraph 3 of the Civil Code lays down the maximum amount of the transition allowance in accordance with the development of negotiated wages, such as those estimated for the Macro Economic Outlooks (MEV). This is decided by the Minister of Social Affairs on 1 januart each year. This amount is always rounded up to a multiple of € 1,000. The development of negotiated wages, according to the MEV is estimated at 1.4%. The maximum amount of the transition allowance therefore amounts to € 2,016 from 76,000. This amount only applies if employment ends on or after January 1, 2016.

Lengthening maternity leave at multiple births

The modernisation schemes for laws regarding leave and working time provides for an extension of maternity leave for employees who are expecting a multiple birth. The entry into force date of the so-called multiples leave will be April 1, 2016. In a letter of June 15, 2015, Minister Asscher has shown earlier that entry into force was not possible because the necessary adjustments to the ICT system for the UWV. Changes will be made to better implement the scheme for entry into force. However, The change does not refer to the leave benefits for self-employed and those who are expecting a multiple birth. In 2016, the Verzamelwet will bring these women to the extension of the leave. The aim is to encourage the take multiple births leave for self-employed and assimilate women with multiple births simultaneously for leave from the workplace.

Adjustment of working hours

Until January 1, 2015 employees were submitting requests to change their working hours more than once in two years. As of January 1, the possibility has been extended to a maximum of one time per year. If there are special circumstances, the employee may also previously submit a new request. The request of the employee must be present for at least four months before the proposed effective date is submitted to the employer. This changes based on the private member's bill on flexible working which takes effect on January 1, 2016. This change ensures that the deadline for submission of an application will be halved to two months. Moreover, workers can not only request to adjust the working hours, but also the workplace and working hours. Employers reserve the right to reject it. They are only obliged (if any) refusal with the right motivation.

Mandatory cashless payment minimum wage

The Law approaching this pretense is largely already in effect, but a number of changes still need to occur which refers to the Minimum Wage Act. For example, cashless payment of at least the net statutory minimum wage from January 1, 2016 is mandatory. The obligation to cashless payment of the minimum wage does not apply to the payment of the holiday allowance. The current Civil Code further holds that the employer may deduct a number of claims (such as renting a house and penalties) on the employee's salary, and some may make deductions from wages. As of January 1, 2016, axis adjustments and deductions from the minimum wage no longer allowed. The ban does not extend to the legal minimum holiday allowance. Article 7: 626 BW clarified on requirements for the payslip. Amounts from which the remuneration is made, including any expenses and the amounts withheld from wages must be broken down by January 1, 2016. For example, If the employer provides reimbursements, these should be apparent from the specificationas to how high they are, for which expenses these benefits are provided and which of them are related to the employment relationship, so it can be seen from the notes to the amendment.

Abolition VAR

The bill DBA has taken the place of the bill introducing a decision against payroll taxes. Entry is now scheduled for April 1 2016. Upon entry into force, the current VAR system will be replaced. Until then, the Declaration of Employment Status remains valid. Client and contractor are made jointly responsible for the control of the (tax) assessments of the employment relationship. Clients, borrowers and their organisations can (already) make agreements to submit to the tax authorities. Assessing who is responsible for payment of payroll taxes, the Tax Administration publishes agreements where there is no employment in cooperation with VNO-NCW and MKB model agreements.

On November 16, 2015, State Secretary of Finance Wiebes sent a transition plan for the Law DBA to the Senate. The transition plan clarifies the manner of introduction of the bill. The bill DBA (deregulation assessment labor relations), according to the Secretary, must be voted in by the Senate no later than January 26, 2016. Otherwise, the proposed phased implementation of the Law DBA will be unfeasible.

Accelerated retirement age

In June 2015, the bill accelerating the raise in the retirement age entered into force. Based on this law, the retirement age will be speeded up: to 66 in 2018 and 67 in 2021 (instead of 2023 based on current legislation). Earlier introduction of raising the retirement age can cause bridging problems for people who have little time to prepare and ways of compensating for the loss. In relation to this, a transitional measure will be taken to that effect that causes people per January 1, 2013 who already took part in an early retirement or pre-pension scheme or similar arrangement. Those who have done so and have not been able to prepare for the state pension age increase will become entitled to receive temporary benefits at minimum level, which is comparable with the standard benefits and state pension depending on other income and assets. The bridging arrangement will expire as of 1 January 2019. This means that individuals in the years 2016 to 2018 given the accelerated raising of the retirement age will still benefit from this scheme. In 2019, it can be expected that people have

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