Long road ahead for new labour law

From 1 January 2015, the Participatiewet will come into effect. With this law, the Dutch government aims to create more jobs for people with disabilities (physical, mental) and Wajong – young people with disabilities and students who became unable to work at a young age. It also includes people who have a great gap in accessing the labour market due to various factors such as low education or long-term work injury.

This law is also part of a decentralising move by the central government as municipal governments will take over the reins from it to implementing measures. Municipalities will work with other parties such as werkbedrijven or work enterprises, the Employee Insurance Agency (UWV), regional employers, labour unions and educational institutions to ensure measures are met.

Noticeably, the government has set high goals – it plans to create 125,000 new jobs by 2026; 100,000 in the private sector and 25,000 in the government sector. The figures are set to grow cumulatively – from 2014, the government sector plans to add 2,500 jobs per year while the private sector will add 5,000 with an increasing number of jobs from 2015 onwards. The government also aims to save €1.8 billion.

The law does come with a hefty price tag – a sizeable sum of more than €2.8 billion has been set aside to help municipal governments roll out measures. All municipal governments will receive a budget according to their needs that will include the Wet sociale werkvoorziening (Wsw) – amount for financial support given to people with disabilities to help them find employment.

In addition, Jetta Klijnsma, Secretary for Social Affairs and Employment, announced at the end of October that an extra €35 million will be made available to regional werkbedrijven. Each of the 35 werkbedrijven will receive €1 million. This money is to provide support for people to reintegrate into the labour market. “The success of the Participatiewet will stand or fall depending on the cooperation within the region. That is why I want to offer extra support in the starting phase to make this possible,” she stated.

There is no doubt about it but the central and municipal governments and their partners are facing an uphill task in implementing measures. The law has already drawn criticism from organisations namely on the definition of who falls under the Participatiewet and the rigidity of quota of jobs that needs to be created.

According to ANP, employers and employees are demanding a broader definition for who will fall under the Participatiewet. They say that this might be disadvantageous for highly educated professionals with disabilities.

In 2016, the government, through UWV, will check if the quota of extra jobs has been created. Employers who have not adhered to the quota may be facing fines – companies with more than 25 employees and who have not met a percentage of employing people who fall under the Particpatiewet will be fined €5000 for each job that has not been utilised. The clause will come into effect in 2017.

In a parliament seating in September, industry experts predicted that many entrepreneurs will “buy off” the quota, that they would rather pay a fine than employ someone they cannot use, reported Nu.nl.

Moreover, in January this year, Piet Fortuin, vice-chairman of labour union, CNV Vakmensen was quoted by Trouw.nl that not many organisations are willing to hire young people with disabilities stating that employers do not want to take responsibility and that times are tough are they cannot employ Wajongers if they have to lay off their own people.

The union also held a survey among organisations in the power, transport, industry and construction sectors that showed 80% of them have no work for young people with disabilities.

Whether the Participatiewet  is successful is yet to be seen but the Dutch government does not have an easy road ahead to reach its aims.

By Priya de Langen