Spring International Conference | May 2-4, 2016

LISBON

The Impact of Millennials an Employment Law and Benefits Perspective

May 4th 2016

Generations at work Baby boomers

Millennials

Generation X

Traditionalists

0

20

40

60

80

2015 2020 2025

Percentage of millennials in the workforce

https://www.usa.gov/statistics

FASTER CAREER ADVANCEMENT

CAREER ADVANCEMENT

FREQUENT FEEDBACK REVIEWS

PEOPLE FIRST INCREASINGLY THE LEADERS OF TODAY

GIVE BACK AMBITION BEYOND PROFIT

ONE FOOT OUT THE DOOR LOYALTY CHALLENGE

FLEXIBLE WORK SCHEDULE AND WORK PLACE

FLEXIBILITY

ATTRACT, RETAIN AND MANAGE

MILLENNIALS

ONE SIZE DOESN’T FIT ALL SOLUTIONS

EMPLOYMENT LAW INSTRUMENTS MANAGEMENT SOLUTIONS

PROFESSIONAL RANK CAREER ADVANCEMENT / REVIEW

SHIFT FOCUS FROM CASH BONUSES

ONE FOOT OUT THE DOOR

TRAINING ONE FOOT OUT THE DOOR

PERMANENCE AGREEMENT ONE FOOT OUT THE DOOR

EXEMPTION FROM A WORK SCHEDULE

FLEXIBILITY

COMPENSATORY TIME OFF FLEXIBILITY

CONCENTRATED WORK SCHEDULE

FLEXIBILITY

TELEWORKING FLEXIBILITY

THANK YOU OBRIGADO

www.espanhaassociados.pt

Dutch Employment Law ‘Millennials proof’? TAGLaw Lisbon 2016

Employment & Labour Specialty Group

Danielle Muller

20th Century

Pag 25

Dutch employment law originates from beginning of 20th century: industrial revolution and emergence of socialist workers’ movement Resulted in: statutory protection of employees against suppression and exploitation by employers

20th Century

Pag 26

Ultimate goal for a worker: permanent (= open-ended) employment contract Strong position for Unions: terms of employment in binding collective bargaining agreements

Employment contracts

Compulsory statutory law 2 types of employment contracts: - permanent (=open-ended) contract: dismissal procedure necessary to terminate

- fixed term contract: terminates automatically by operation of the law

Pag 27

Employment contracts

Legal assumption a person who has been working for another person or corporation every week*) or 20 hours or more every month for at least 3 consecutive months, is assumed to be an employee with a permanent contract. *) regardless the amount of hours

Pag 28

21st Century Hundred years later prevailing political view still: permanent contract is the best thing. January 1st, 2015 Work and Security Act (Wet Werk en Zekerheid) entered into effect. One of the goals: less flexibility. A permanent contract for all employees as soon as possible.

Pag 29

Less flexibility

Pag 30

How? Limited use of fixed term contracts Fixed term employment contract will automatically convert into a permanent employment contract if: -  a chain of fixed term employment contracts

covers 24 months or more; or -  a chain of three fixed term employment contracts

is continued.

Result: counter effect

Pag 31

Employers hesitant with permanent contracts: -  high level of protection against dismissal -  high costs of employment: obligation to pay

salary during first 2 years of sickness, statutory severance payment after 24 months of service

Daily practice: -  dismissal of flexworkers after 24 months -  huge increase of self-employed / independent

contractors

Self-employed/Independent contractors

Hiring self-employed/independent contractors is tricky: - civil law disputes about classification of the relationship

- tax issues System works though: wish for flexibility prevails over risks

Pag 32

Self-employed/Independent contractors

Pag 33

But government not happy. May 1st, 2016 New weapon into ‘fight’ to discourage flexibilty: Decree making employer and independent contractor equally responsible for paying income tax and social premies (instead of sole responsibility independent contractor)

Millenials Millennials: - different view on employment relationship - different desires. - above all want more freedom, more flexibility.

Millenials change jobs more frequently and they live longer.

Pag 34

Millenials

Increase of demand for starters in especially ICT, sales and engineers and technicians à i.e. the Millennials

Expectation: in 2025 Millennials will have approx. 75% of all jobs

Pag 35

Challenges Is employment contract still the Holy Grail? Being an independent contractor suits a part of Millennials better than straitjacket of permanent employment contract. Employment contract 2.0 should reflect: - flexibility for employer ànd employee (hours, terms and conditions, etc.)

- certain level of security/protection of employee.

Pag 36

Philosophical Will it change? Important factor still: the Unions. They have much political influence. But for how long? Unions loose ground among work force. Majority of members is 55+. Young people are not interested in Unions (individualization of society). Pag 37

Philosophical

Pag 38

My view: Unions should let go the idea of permanent contract as the ‘holy grail’ and negotiate broad range of terms and conditions of employment and general budgets. Employer and employee must be able to pick those terms and conditions that suit them best.

Questions?

Any questions?

Thank you!

Pag 39

Contact details Danielle Muller Sophiastraat 22-28, 4811 EM Breda muller@rassers.nl Postbus 3404, 4800 DK Breda

T: +31(0)76 5136136 F: +31(0)76 5222552

MillennialsandBenefits

BramBogaardManagingDirectorEurope

“Challengesinachangingworld”

AlexanderBeardInterna9onalBenefits

BramBogaardManagingDirectorEurope

Weassistinterna4onalclientswiththedesign,implementa4onandthe

administra4onofEmployeeBenefitprogramsandstrategiesfortheirEuropean

basedopera4ons

Interna9onalContextNetherlands

1,9mlnjobsatmul9na9onalcompaniesOfwhich0,9mlnatforeigncompanies

2/3ofrevenueintheNetherlandsisearnedbymul9na9onals

SocialSecurity

ThesocialsecuritysystemoftheNetherlandsisbasedonsocialinsurancesandsupplementary

incomesupportprovisions.ThemainprincipleofthesystemoftheNetherlandsisthatall

membersofsocietymustbeabletoplayanequallyac9veroleinsociety

SocialSecurity

Na4onalSocialSecurity Forallci9zensPaidbyincometaxes

Employeesocialinsuranceschemes

ForallemployeesPaidbyemployertaxes

"Bestcountryintheworldtobesick"

Oldagepension

(Un)employment

Disability/Healthsystem

Oldagepension

Statepensionprovidedforallci9zensatage6795%ofemployershaveaddi9onalcorporatepensionplans

-Mandatorypensionfunds -Socialpartnersdecideonlevel -DBplans -Li^leinfluenceindividualemployee

(Un)employement

-  75%oflastearnedwageforthefirsttwomonths-  70%therea`erdependingonindividualcircumstances.-  Maximumof36months.Thenumberofsucceedingemploymentcontractsforafixedtermislimitedtothree.Thetotaldura9onoffixedtermcontractsislimitedtotwoyears.Ifthedura9onofthecontractsorthenumberoffixedcontractsexceedsthelegallimit,theemploymentcontractwillautoma9callybecomeacontractforanunlimitedterm.

Disability

Theemployerisrequiredbylawtocon9nuetopayatleast70%ofthesalaryforaperiodof104weeks,duringthefirst52weeksofwhichtheamountofthesalarymustbeatleastequaltominimumwages.MostCollec9velabouragreementsprovidetopupobliga9onto100%firstyear/70%secondyear.

Largereintegra9onobliga9onsemployer

Disability

A`er104weekstheemployeefallsundersocialsecurity.Benefitdependsonlastearnedwageandremainingworkingcapacity

Health

BasicHealthinsuranceiscompulsoryforallresidentsoftheNetherlands.Premiumpaidbyemployertaxesandindividualpremiumtohealthinsurancecompany

MillennialsandBenefits

MillennialsandBenefits

MillennialsandBenefits

MillennialsandBenefits

Currentsystemisnotflexible-Collec9velabouragreements-Focusonunlimitedcontractterm-Historicallystrongunionpresence-Extensivelegalrequirements-Taxlegisla9onlimitsflexibility

Solu9on

FlexBenefits

Thankyou

FlexBenefits