On January 1, 2020, the Balanced Labor Market Act (WAB) came into effect. The amendments to this law will therefore take effect immediately. Is your organization Balanced Labor Market proof? On this page you can read everything about the most important things and adjustments.
What is the Balanced Labour Market Act (Wet Arbeidsmarkt in Balans)?
As of 1 January 2020, the Balanced Labour Market Act (WAB) will come into effect. This law is quite difficult for organisations that work with on-call workers and people with a min-max contract. Officially, there is no on-call or min-max contract under the WAB if you, as an employer, offer a guaranteed number of hours over a period of no more than one year. The entitlement to wages must also be spread proportionally over that period. According to the government, the intention of this option is to cater to sectors that depend on seasonal labour, including agriculture and horticulture. In other words: the WAB should make hiring permanent staff more attractive.
In order to provide better support for the WAB, dismissal law, the fixed-term contract limit (ketenregeling) and the unemployment insurance premium (WW) have also been adjusted. The introduction of the WAB and associated adjustments will probably have an impact on the annual hours standard and strategic staff scheduling of your company. For example, with the introduction of the WAB it may be more attractive to hire more permanent employees instead of flex workers. It is, therefore, a good idea to check whether everything in your organisation is up-to-date. Are you not sure? We have outlined the most important changes for you.
Unemployment insurance premium (WW) has gone up
As of 2020 you will pay 5% more unemployment insurance premium for employees with a fixed-term contract than for employees with a permanent contract. The average employer's costs (premiums) for temporary employees will then be 23.9% and 18.9% for permanent employees.
Adjustment of Dismissal Law
Because the dismissal law has been adjusted, you now run less risk with employees in permanent employment. With the entry into force of the WAB, you can now dismiss employees on the grounds of a sum of circumstances, or cumulative grounds.
The fixed-term contract limit has also been adjusted. Since January 2020 you can only offer three fixed-term contracts over a period of three years. This means you don't have to give someone a permanent contract as quickly. However, the mandatory break between two successive contracts does remain at six months.
Do you have any questions about the Balanced Labour Market Act (WAB)?
We understand that a lot has changed with the entry into force of the WAB. As a result, you may suddenly be faced with complex issues and a lot of adjustments to be made within the organisation. With our software you are always assured that everything is up-to-date. At BCS, we are always aware of the current legislation and regulations and immediately adjust this in our software. This guarantees the continued operation of your organisation. Feel free to contact one of our experts, they will speak to you personally and answer all your questions about HR and Payroll Administration. Or go directly to our products page and see which software package best suits your organisation.
Would you rather gather all you need to know about current topics in the field of HR and payroll administration in one day? View our training courses and workshops.