Flexible employment in the focus of government

In the Netherlands, there is an upward trend in flexible employment. If in 2003 14% of all employees (1,1 million people) were in flexible labor relations with employers, then in 2021 this figure reached 28% (2,6 million people). On the one hand, flexible labor relations provide more freedom for both companies and employees. But on the other hand, in conditions of flexible employment, workers are less protected.

Government Letter

The Cabinet sent to the House of Representatives writing with an overview of the labor market and plans for its reform in the coming years. According to the Minister of Social Affairs and Employment (SZW) Karien van GennipGovernment plans are based on the recommendations of the Borstlap Committee (Commissie-Borstlap), the Scientific Council for Public Policy (Wetenschappelijke Raad voor het Regeringsbeleid, WRR) and the Social and Economic Council (Sociaal-Economische Raad, SER). The focus was on the regulation of flexible employment and achieving a balance in working conditions for employees and self-employed persons.

The concept of "flexible employment"

Several types of flexible employment relationships are allowed in the Netherlands:

• fixed term contract work (it is also called a fixed-term / temporary / fixed-term contract - tijdelijke contract / arbeidsovereenkomst / arbeidscontract / arbeidsovereenkomst voor bepaalde tijd); 
• work on call, namely - under a zero contract (for 0 hours / for zero time contract - 0 uren contract, nul urencontract);
• minimum/maximum contract work (min/max/min-max contract – min/max contract/ min-max contract);
• work through payroll organizations; 
• temporary work through an employment agency (uitzendbureau).

And separately it is necessary to highlight the services and works performed / provided by self-employed persons - individual entrepreneurs. In the Netherlands, this is eenmanzaak - EMZ. In current practice, this form of business can still be called ZZP (zelfstandige zonder personeel), which is only partly true, because. according to the law, the entrepreneur ZZP is also an EMZ, but he works alone, without hired staff.

Note!

Several types of flexible employment relationships are allowed in the Netherlands:

• fixed term contract work (it is also called a fixed-term / temporary / fixed-term contract - tijdelijke contract / arbeidsovereenkomst / arbeidscontract / arbeidsovereenkomst voor bepaalde tijd); 
• work on call, namely - under a zero contract (for 0 hours / for zero time contract - 0 uren contract, nul urencontract);
• minimum/maximum contract work (min/max/min-max contract – min/max contract/ min-max contract);
• work through payroll organizations; 
• temporary work through an employment agency (uitzendbureau).

And separately it is necessary to highlight the services and works performed / provided by self-employed persons - individual entrepreneurs. In the Netherlands, this is eenmanzaak - EMZ. In current practice, this form of business can still be called ZZP (zelfstandige zonder personeel), which is only partly true, because. according to the law, the entrepreneur ZZP is also an EMZ, but he works alone, without hired staff.

Regulation of flexible labor relations

As noted in the government letter, flexible employment plays a useful role in the labor market, it is the future. Flexibility gives companies the ability to respond to changes in the economy. In addition, employers must be able to respond to natural fluctuations in the workload depending on the season or other circumstances. Applicants are provided with flexible employment opportunities.

However, as a result of this flexibility, companies invest less in human capital. Employees with a flexible contract face more risk and less security than employees on an employment contract. This creates an imbalance in the labor market between "insiders" with an employment contract and "outsiders" with flexible terms of labor relations.

“Too many people in these circumstances get into trouble, are unsure of their income, or individually bear many risks, for example, if they are not insured against sickness.”, says Minister Van Gennip.

In addition to trends such as population aging and globalization, the cause of the problems in the labor market is the lack of a holistic approach to all categories of workers. Although steps have already been taken to achieve a balance in the labor market (for example, read our Article about the WAB Law), they were not enough. The issue of regulating the labor market, namely flexible employment, is now very acute.

Sustainable labor relations

The government is going to provide workers with flexible contracts with more guarantees:

• zero contracts and contracts with minimum employment in their current form will disappear - they will be replaced by basic contracts;
• fixed-term contracts would have to offer equivalent terms of employment for workers with employment contracts;
• it is planned to encourage workers to move from one job to another without interruption after the termination of the flexible contract.

More clarity on self-employed persons (EMZ/ZZP)

According to the cabinet, self-employed people make a big contribution to the development of the Netherlands, and self-employment "makes it possible to get more pleasure from work." But there are also negative aspects of a sharp increase in the number of self-employed, for example, when it comes to forced or fictitious individual entrepreneurship.

“The government wants to provide an adequate level of protection for all workers, fight unfair competition in terms of employment, ensure solidarity in the social security system and improve the tax system”, is emphasized in the letter.

On the one hand, disability insurance and the possibility of forming a pension are being introduced for the self-employed. On the other hand, more clarity is needed on when work should be done by an employee and when it can be assigned to a self-employed person. In particular, the so-called legal presumption will be introduced. This means that from now on, the employer must provide evidence of the absence of an employment relationship - instead of the employee, who must prove the existence of an employment relationship. According to Minister Van Gennip, the fight against fictitious business will intensify. 

In early 2023, the government's plans to reform the labor market will be finalized. There may be alternative solutions for some issues. We remind you that as part of the reform of the labor market, an important step will also be the mandatory certification of employment agencies from 2025 - read about this in our Article.