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The 5 most important changes according to the Act on Transparent and Predictable Employment Conditions

27/06/2022

Employers should take action before 1 August, 2022 due to the Act on Transparent and Predictable Employment Conditions (in Dutch: Wet Transparante en voorspelbare arbeidsvoorwaarden). This Act introduces a number of new obligations for employers and new rights for employees. Employers should be aware as well that this Act will enter into force immediately and applies to both existing and new employment contracts. 

The most important changes as per 1 August 2022, according to the Act on Transparent and Predictable Employment Conditions are the following:

  1. Ancillary activities clause
    A general prohibition on ancillary activities is no longer allowed. The clause may only be used if there is an objective justification (valid reason), for example, exceeding maximum working hours, employee health and safety, protecting company information or avoiding conflicts of interest. We advise to amend the general ancillary activities clauses.
     
  2. Study costs clause
    Mandatory training must be provided free of charge to employees as much as possible during working hours. What is a mandatory training, how to establish that? In addition, the employer should be aware that the time involved in following a mandatory training course is regarded as working time. Agreements on settlement or repayment of these costs are thus null and void. Study costs that are nevertheless recovered may be reclaimed. We advise to verify all existing contracts and establish whether the study costs clause is still valid or not.
     
  3. Unpredictable work pattern
    This is the case if the times when work is performed are determined (in)directly by the employer to a large extent. In that case, the Act prescribes that a reference period (days and hours) must be agreed upon within which the employee can be called up. If this is not complied with or the employee is called outside the framework, the employee may refuse the call. Employees are given the right to ask the employer for more predictable working pattern.
     
  4. Predictable employment conditions
    The Flexible Work Act provides, among other things, that an employee may request the employer to adjust the hours of work, the place of work or the working hours. As per 1 August 2022, according to the Act, the employee may additionally request the employer to provide a form of work with more predictable and secure working conditions. For example, a predictable schedule. The employee's request can be made 26 weeks after the commencement of employment. The employer with 10 or more employees must respond to the request within one month. With fewer than 10 employees, a response time of three months applies for the employer. The decision must be in writing and must be motivated. Please note that if the employer does not respond in time, the request is deemed to have been granted.
     
  5. Information obligation
    The Act expands the current information obligation of employers regarding terms of employment, rights and obligations of the employee. This includes information about (changing) places of work, entitlements to other forms of paid leave (in addition to vacations), working hours, separate wage components such as bonuses or supplements, the right to training, and the procedural aspects of terminating the employment contract. We advise to adjust the template employment contracts and, if any, personnel handbooks, in line with this information obligation. Employers should be aware that the information must be provided in writing and within one (1) week of the first day of work. The obligation also applies to existing employment contracts, if the employee so requests. Failure to comply with the information requirement in a timely manner may result in liability for damages.

May you wish to receive more information or have any questions when implementing all the changes, please contact us.

Authors

Portrait ofAyşegül Avci
Ayşegül Avci
Advocaat
Amsterdam
Portrait ofAlette Groot
Alette de Groot
Advocaat
Amsterdam