Expatica International Job Fair April 5th 2014

Dutch Employment & Dismissal Law plus changes to the law in 2014 & 2015

presented by Arnoud Noordam PhD

1. Introduction

• How it all started……..

• Fifteen years assisting expats

• (a) Employment law (b) Rental law (c) Review house sale (d) Insolvency law.

2. Types of contract

• 1st Temp contracts – Agency - ABU Collective Labour Agreement

• 2nd Flex Workers – 0 hours

• 3rd Definite period of time

• 4th Indefinite period of time

3a. Chain rule

Contract for an indefinite period of time

(a) after 36 months, or

(b) as of the commencement of the fourth fixed-term contract, unless there is a break of more than three months between successive contracts.

3b. Chain rule July 2015

Contract for an indefinite period of time

(a) after 24 months, or

(b) as of the commencement of the fourth fixed-term contract, unless there is a break of more than six months between successive contracts. • Exceptions in CLA possible

* The provisions of a collective labour agreement may deviate from the given maximum probation periods.

Duration of employment contract Maximum probation period *

Indefinite contract 2 months

Contract of 2 years or longer 2 months

Contract less than 2 years 1 month

Contract for the duration of a project 1 month

4. Probation period

5a. Contract clauses

Clause Comments

Holidays Minimum: 4 * weekly working days (4*5 = 20 days)

Holiday pay 8%

Salary Minimum € 1,485.60 (> 23 years; Jan

2014)

Employee notice period 1 month; sometimes more…..

Employer notice period < 5 years: 1 month 10 – 15 years: 3 5 – 10 years: 2 > 15 years: 4

Non-competition Binding?

5b. Contract clauses July 2014 (?)

Contract New rules for contracts starting after July 2014

Short contract < 6 months No probation period

Short contract > 6 months

1 month notice (otherwise 1 month extra salary)

Contracts for a definite period of time No non-competition clause; in principle…

On-call contracts Only permitted during first 6 months. Collective LA can allow longer period

6. Employee Protection

• Sickness

−2 years continued payment: 70% or more

−Re-integration

−No termination of employment by giving notice during first 2 years of sickness

• Dismissal

7a. Severance Pay

A * B * C = € .... ?

A = Number of years of employment, weighted according to age (< 35, 35-45, 45-55, >55)

B = Monthly remuneration

C = Blame factor (in Dutch: Correctie factor)

7b. Severance Pay July 2015

• 1/3rd of monthly salary for each year of employment; ½ month salary if employment > 10 years

• Maximum € 75,000 or 1 year salary (if higher)

• Court can award higher severance if employer seriously culpable….

8. Questions….?

? ??

Visit our website www.noordamadvocatuur.nl

Call us on 020 – 6898 123

We are located at Oranje Nassaulaan 5

in AMSTERDAM