19 December 2014

Changes in Dutch employment law per 1 January 2015

Changes in Dutch employment law (per 1 January 2015)

Work and Security Act

On June 10, 2014 the Work and Security Act (Wet Werk en Zekerheid) has been adopted by the Dutch Senate. The new legislation will amend different rules and regulations regarding the termination of employment, the legal position of flexible and interim workers, the law with respect to unemployment and other income-related regulations.
The first changes will come in effect as of 1 January 2015. The next changes will enter into force as of 1 July 2015 and 1 January 2016.

Below we will address the most relevant consequences that new Dutch legislation entails per 1 January 2015:

  • No probationary period is allowed in fixed terms employment agreements for a period of less than 6 months

  • One month notification period must be observed in fixed term employments agreements of more than 6 months, meaning that the employee should be informed one month in advance whether or not the employment agreement will be renewed or terminated. If this is not correctly applied, the employer risks a fine of maximum one month’s salary

  • No non-competition clause is allowed in fixed-term employment agreements, unless the employer has a substantial business interest to include this. In case a clause is insufficiently motivated, the court may nullify the clause. It is advised to assess the current non-competition clauses to see if these meet the new requirements, that are applicable on employment agreements per 1 January 2015.

    Considering aforementioned changes, it is advised to reassess current employment agreements under Dutch law and to duly administrate the relevant moment of notification.

    The changes with regard to the change of Dutch dismissal law will be in force as of 1 July 2015. Please see our blog regarding these changes in Dutch dismissal law as of 1 July 2015 here.

    The new Dutch employment legislation will bring substantive changes in employment law in the Netherlands and requires businesses to reassess their HR administration and employment agreements under Dutch law.

    If you have any questions regarding the consequences of this new Dutch employment legislation for your organization, please do not hesitate to contact Rachelle Mourits employment attorney with the Dutch law firm Blenheim.