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A short overview of the 2021 employment law changes in the Netherlands

07/01/2021

Following a turbulent and challenging 2020, we will start 2021 by looking ahead at the most important legislative changes with respect to Dutch employment law. As a token of appreciation for your continued support, we provide you with a one-pager containing the most important employment law changes for 2021.

Maximum statutory transition payment increased

If the employment agreement ends on 1 January 2021 or later, the maximum statutory transition payment amounts € 84,000 gross. If the gross annual salary is higher than € 84,000 gross, that amount is the maximum.

Compensation scheme for transition payment 

In the event of termination of employment as a result of retirement or death of the employer, small employers may apply to the UWV for compensation of the transition payment paid as from 1 January 2021. For more details check: Compensatieregeling transitievergoeding bedrijfsbeëindiging

On-call contracts 

An employer is obliged to offer a fixed number of hours to on-call workers who have been employed for at least 12 months. That offer must be at least equal to the average number of hours worked in those 12 months. With effect from 1 June 2021, the following changes apply; 1) If the on-call worker accepts the offer, it must take effect on the first day of the 15th month at the latest and 2) the employer's offer is always valid for one month. 

Fixed travel allowance

The flat-rate travel allowance may continue to be paid until 1 February 2021, even if employees mainly work from home. This is an exception because – according to the "Handboek Loonheffingen (Payroll Taxes Manual)" – a fixed travel allowance may only be paid up to and including the calendar month following the month in which the employee started working from home.

Payroll workers will be entitled to a so-called adequate pension scheme

From 1 January 2021, payroll employees will no longer be subject to the pension obligation of the "Stichting Pensioenfonds voor Personeelsdiensten (StiPP)". The payroll employer is obliged to provide another, 'adequate' pension scheme in good time.

Commencement of second period of NOW 3

The third support and recovery package (NOW3) runs until 1 July 2021. NOW3 second period can be applied for from 15 February 2021 until 14 March 2021. Entrepreneurs can be compensated for a large part of their wage costs with the Temporary Emergency Bridging Measure Employment (NOW) if they expect to lose at least 20 percent of their turnover. From 1 April 2021, there must be a loss of turnover of at least 30 percent.

May you wish to receive more information or may you have any question, please feel free to contact us. We are – as always - happy to assist.

Authors

Barbara-Veldmaat-CMS-NL
Barbara Veldmaat
Counsel
Amsterdam
YHS_NigelHenssen2-CMS-NL
Nigel Henssen
Advocaat
Amsterdam