The human aspect makes every situation in labour law unique. Conflicts in the workplace can lead to the termination of the employment relationship, with the associated financial and emotional repercussions. Prompt and targeted action is often key. For instance, consider the instant dismissal of an employee. This is a delicate issue, with strict requirements.
With the introduction of the ‘Wet arbeidsmarkt in balans’ (Balanced Labour Market Act), many changes have occurred. This includes the chain of fixed-term contracts regulation, severance pay, zero-hours contract, new grounds for dismissal, and payrolling.
The calculation for the severance you must pay if you decide to end or not continue the employment changed from 1 January 2020. The severance is due from the first day of the employment. Moreover, the compensation is always 1/3 of the monthly salary per year of service, proportionally for a partial year.
From 1 January 2020, the severance pay is calculated as follows:
Sum these three amounts to determine the severance pay.
The rules for zero-hours contracts changed from 1 January 2020. The most significant change is the legal definition of ‘zero-hours contract’. It’s essential to understand that even if the term ‘zero-hours contract’ isn’t in the employment contract, it might still be a casual contract under the new rules.
If the answer to any of the following questions is “yes”, then it’s a zero-hours contract unless compensated standby or on-call duties are being performed in healthcare:
Zero-hour and min-max contracts generally fall under the new definition of “casual contract”.
From 1 January 2020, employers are required to offer an on-call worker who has been working for a year an employment contract based on the average number of hours worked per month in the preceding 12 months.
Of course, the on-call worker can reject the offer if they prefer to continue working on a casual basis.
From 1 January 2020 on, there’s a ninth ground for dismissal: the cumulative ground.
The cumulative ground allows you to combine parts of other dismissal reasons (except economic reasons, prolonged illness, and/or conscientious objections) and use them as a collective reason. Note that if the judge terminates the employment contract based on the cumulative ground, they might award a higher severance pay, up to a maximum of one and a half times the regular severance.
Based on these assessments, you can determine your negotiation position. The chances of success in a procedure are essential, as are financial considerations. Swiftly ending employment can save hassle and costs, like salary expenses, legal fees, etc.
Entrepreneurs and individuals can seek our advice, and we can also assist in legal procedures or initiate them. We are up-to-date with the latest laws and regulations and are eager to advise on them. If needed, we’re ready to litigate in court for you.
We are happy to assist you. Feel free to contact one of our lawyers without obligation.
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