Labour Law Solicitor in Haarlem & Utrecht
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.
Chain of fixed-term contracts regulation
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:
- Multiply the number of full years of service by 1/3 of the gross monthly salary.
- For the remaining full months of the employment, divide the total wages earned in these months by the monthly wage, then multiply by ⅓ of the gross monthly salary and divide by 12.
- If a few days have been worked, consider the total salary earned in those days. In this case, that’s also the ‘monthly salary’. Divide the earned wages by the ‘monthly wage’ (the same amount), and then multiply by 1/3 of the earned salary and divide by 12.
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:
- Is the scope of work for a period (up to a month) partly flexible?
- Is there an agreement for fixed annual hours, but not fixed pay per period?
- Has the obligation for continued wage payment been excluded?
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.
- This offer must be in writing or electronically.
- As long as the employer doesn’t make this offer, the on-call worker is entitled to wages over the average number of hours worked per month in the previous year.
- This regulation is effective immediately. This means employers with on-call workers already employed before 1 January 2020 must also make an offer if they have been working as an on-call worker for a year or longer by 1 January 2020. This offer must be made before 1 February 2020.
Of course, the on-call worker can reject the offer if they prefer to continue working on a casual basis.
New Ground for Dismissal
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.
Termination by Mutual Consent
Assess Your Chances in a Dismissal Procedure
Check Your Risks for Additional Severance Payments
Assess Your Negotiation Position
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.