10 July 2024

Quarterly Report Employment law

10 July 2024

Dutch labour law is complex and changes constantly. This is challenging for employers, as it requires a sharp and forward-thinking approach. La Gro is forward-thinking and actively informs its relations about developments regarding labour law with the aim to fully unburden you, so that your business can remain your top priority.

La Gro regularly shares insights in various legal fields, because we believe that this is the key to growth. This quarterly report aims to give a brief overview of important labour law developments in the last quarter. It also looks ahead to developments that may require action from employers. If you would like to receive the quarterly report automatically via email fill out the form below. 

Legislative developments

Further regulation of non-compete clauses expected

A legislative proposal outlines the way in which the use of non-compete clauses might soon be regulated. The internet consultation phase for this proposal has now been completed. The proposal is expected to significantly change the agreement and enforcement of non-compete clauses in new employment contracts.
Click here for more information on this topic.

Newly proposed rules with regard to transfer of employees in the event of bankruptcy

A new legislative proposal regulates the transfer of employees when a bankrupt company is taken over. The proposal leaves room for an objective and transparent method of partial transfer of employees due to business economic reasons and regulates non-competes and the consultation of employees  in such transfers. 
Click here for more information on this topic.

Proposed mourning leave

Coinciding with a broader intention to reshape special leave legislation, a separate legislative proposal aims to introduce an entirely new form of leave: mourning leave. This form of leave would extend the current leave  between passing and funeral and would set a minimum standard of five days in case of loss of partner or minor child. 
Click here for more information on this topic.

Case law developments

Clarification of Xella case law

If a long-term sick employee whose employment contract can be lawfully terminated so requests, the employer must cooperate with the termination of the employment agreement, except in exceptional cases. The Supreme Court now clarifies the way in which the existence of such an exception must be assessed.
You can read more about this ruling here.

Relationship clause violates Waadi 

In a recent ruling, the Court of Appeal in Den Bosch has declared an employee’s relationship clause null and void after the work was found to be temporary agency work. The ruling contains important lessons about temporary agency work, relationship clauses and the effect of European law on labour contracts. 
To learn more, click here.   

Sick pay does not require a sickness notification by the employee 

After an employer can reasonably know that an employee is sick, the correct actions must be taken. Any (unintentional) violation of legal obligations can cost an employer dearly. Recently, the Court of Appeals in The Hague assessed whether calling-in sick is relevant with regards to those obligations.
Read more about this ruling here. 

Labour market developments

Labour shortage remains  

The Dutch labour market remains in a shortage, but labour market tension eased slightly in Q1 of 2024. The ratio of job vacancies for every 100 unemployed fell to 110, compared to 114 vacancies in Q4 of 2023. Unemployment rose slightly to 3,7%.

Increase of wages at the start of Q3

Many employees will see their wages increase per 1 July 2024. Many collective labour agreements stipulate such increases. On the same day, the statutory minimum wage for all employees will also increase by 3,08%. Employers will need to update their salary administration where necessary.
For more information on the correct payment of (minimum) wages, click here.

Effects of the coalition agreement

177 days after the general elections, four political parties have reached a coalition agreement. The main proposals with regards to the labour market are: lower taxes on labour, more commitment to permanent contracts, reduction of the maximum unemployment benefit to 18 months, continuation of major pending legislative proposals (including the Vbar, the Wtta and the modernisation of the compete clauses) and limitation of compensation of transition payments to small employers. The coalition agreement contains no proposals to change the dismissal system.

How can La Gro be of assistance? 

The second quarter of 2024 brings many new developments in the field of employment law but also other areas of Dutch law. Are you curious about what recent developments mean for your organisation? Do you have a pressing matter within your organisation? With extensive knowledge in eighteen areas of law, La Gro is perfectly positioned to assist in a broad spectrum of legal challenges within you business. Please feel free to contact any of our experts to inquire about the possibilities. We would be more than happy to assist you.

Author
G.B.M. (Gerard) Zuidgeest

Attorney at Law & Partner

Call: +31 172 530 250

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