Changes to employment law in 2022 Reforms

The incoming Rutte IV cabinet will implement major reforms in the labour market that will strengthen the labour market position of low- and middle- income earners. The differences between permanent and flexible work will be reduced.
On-call, temporary and fixed-term contracts will be ‘better regulated’.

Higher minimum wage

There will be a minimum hourly wage based on a 36-hour week. In addition, the minimum wage will gradually increase by 7.5%.

Distance to the labour market

Together with social partners, municipalities and the UWV, the Cabinet wants to help more people to find work. This also applies to people with a distance to the labour market. For this purpose, the number of sheltered workplaces will be expanded.

No end to the corona support

The government already extended the support for the last quarter of 2021, but now also for the first quarter of 2022.
Next year will be marked by the final calculation of the NOW subsidy. Employers should take into account that they may have to repay (part of) the advances. This is because the actual loss of income often differs, for example because the economy was better than expected. The UWV will, however, be cooperative with the repayment terms.
The repayment of tax debts will also start from October 1, 2022. Entrepreneurs will then have 5 years to repay the tax debt.

Targeted exemption from homeworking expenses

It is expected that after the corona crisis, a large group of employees will again work partly at the office, but also still part of the week at home: the so-called hybrid work. Many employers want to provide compensation for the additional costs of working from home.
In 2022, the government is going to create a targeted exemption in the work- related expenses scheme for the reimbursement of certain home-working expenses. This will involve a fixed amount of up to € 2 per day worked from home or part thereof. This makes it possible for the employer to grant this allowance free of payroll taxes.
The exemption for a home office allowance and an exemption for a travel allowance for commuting to the fixed place of work cannot apply simultaneously to the same workday.
The exemption for a home-working allowance of up to € 2 per home-working day and can be applied if an employee only works from home for part of the day. However, if an employee works at home for part of the day and the other part at the fixed place of work, only one of the exemptions can be applied. However, an allowance for a business trip can still be granted on a home- working day.

Parental Leave Allowance Act Work and Care

As of August 2, 2022, employees will be entitled to a parental leave benefit for 9 weeks when taking parental leave.
The paid parental leave will eventually be increased to 70%. It is still unclear whether this will be the case immediately at the start of the scheme.

Childcare will be free

It will become more attractive for parents to combine work and care because the childcare allowance will increase in stages to 95% for working parents for children up to the age of 12. The allowance will soon be paid directly to childcare institutions so that parents will no longer be faced with large clawbacks.

End of the temporary expansion of the margin (COVID-19)

The free margin within the Work-related Costs Regulation (Werkkostenregeling) will once again be 1.7% of the fiscal wage bill up to and including € 400,000 and 1.18% of the remaining wage bill above that amount.
The temporary 3% increase for the first € 400,000 of the total taxable salary due to the corona crisis (for additional reimbursements) will therefore cease in 2022.

Directive on transparent and predictable working conditions

This directive must be implemented by August 1, 2022. The aim is to promote more transparent and predictable working conditions in the EU.
In short, the directive stipulates that compulsory training is always at the expense of the employer, that the employer may only prohibit working for third parties under strict conditions, that employment conditions must be clearly set out in writing and that flexible workers are entitled to more predictable employment conditions with more security.
The elaboration of the directive for the Dutch situation must be submitted to parliament before the summer of 2022.

Web module for hiring self-employed people

The web module for hiring self-employed workers has been tested in recent months. In seventy percent of the assignments it appears to provide clarity about the nature of the employment, according to the evaluation. Every company who hires self employed workers need to fill out the web module.

Self-employed must be insured

There will be mandatory disability insurance for all self-employed, which should prevent unfair competition and excessive income risks for individuals.

Transition allowance for SMEs

Since 2021, small employers who terminate their business due to retirement or death are entitled to compensation for the transition fee.
But the compensation option in the case of business cessation due to illness of the employer was delayed earlier and will therefore not enter into force before the summer of 2022.

Maximum Transition Compensation 2022

The Act on Work and Security provides that the amount of the maximum transitional compensation is indexed each year on the basis of the development of contract wages. The Regulation on indexation of transitional compensation shows that for 2022 this amount will be rounded off to EUR 86,000, or a maximum of one year’s salary if that amount is higher.

New rules on cross-border secondment in road transport

According to the European Mobility Directive, there must be rules for the cross- border posting of foreign drivers to the Netherlands. These rules must ensure a balance between the provision of correct working conditions and social protection for drivers, the free movement of goods and the freedom of entrepreneurs to provide cross-border services in the road transport sector.
Also, the supervision of the rules will be equivalent everywhere in Europe. These rules must be transposed into Dutch law and regulations by 2022.

Longer work permit under the Foreign Nationals Employment Act (Wav)

The maximum period for which a work permit can be granted will be extended from one to three years. Changes are also being made to strengthen the position of employees. The changes must take effect on January 1, 2022.

Flexworkers get more co-determination

The Works Councils Act will be amended in 2022 to allow flex workers to be more involved in co-determination. Most importantly, the periods for active and passive voting rights will be shortened to 3 months (was 6 and 12 months respectively). Furthermore, temporary workers count earlier as “persons employed in the company” (from 24 to 15 months).
This means that a temporary worker starts to accrue co-determination rights in the hirer’s company after only 15 months and acquires active and passive voting rights after 18 months (15+3=18 months). An enterprise with many temporary employees may also have to set up a Works Council sooner.

Stimulating Labour Market Position (STAP)

Employed and non-employed persons can apply for up to € 1,000 for a training activity as of 1 March 2022. The STAP budget is independent of the employment relationship and is available to everyone: not only employees, but also the self-employed can make use of it.
The STAP account replaces the fiscal deduction of training expenses. This allows citizens to use training for their own development and sustainable employability. UWV and DUO will implement the scheme, which will probably take effect on 1 March 2022.

Sustainable employability

In 2020, the multi-year investment program for sustainable employability and lifelong development (MIP) was set up. The activities of the MIP will continue in 2022, with the aim of creating awareness and developing knowledge. At the end of 2021 a subsidy scheme will open to make practical and scientific knowledge about sustainable employability available to companies, sectors and organizations. The assessment of applications and granting of subsidies for projects is expected to start in 2022.

Bill on future pensions

The bill should lead to a renewed pension system, in which the premium paid is important ( less solidarity) and the benefits move faster with the economy. This will allow the pensions of participants and pensioners to be indexed more quickly. The bill also describes the frameworks that must ensure a balanced transition to the new system for all participants. The bill also contains a proposal to reform the survivor’s pension.

Occupational Health and Safety Vision 2040

In 2022, a new long-term vision of occupational health and safety policy will be established: the Health and Safety Vision 2040. Important topics are prevention, improving work-related care and its connection with regular care and improving compliance. The draft Arbovisie will be adopted in 2022 after advice from the SER.

Illness and reintegration efforts

The bill, which the medical advice of the company doctor is leading in the test of the reintegration efforts by UWV, has been declared controversial and can therefore not be discussed by parliament. If the bill is taken up again, implementation will not be possible before 1 July 2022 at the earliest.
In the event of illness, the focus is on the recovery and return of the employee. In order to improve the continued payment of wages during illness, reintegration in the second year will in principle focus on the second track, limiting the inflow into the WIA as much as possible.

No more smoking rooms by 2022

As of January 1, 2022, the smoking ban will apply to all areas, buildings and facilities where people work. Therefore, smoking areas must disappear. These had already been abolished in government buildings since July 1 of this year.

Further information & disclaimer

Further information
Levenbach Advocaten Mr. Aernout Zappey, Oranje Nassaulaan 17 (1075 AH) Amsterdam I: T:+ 31 20 6646511 @:
Although Levenbach Advocaten has taken the greatest care in compiling the information contained in this brochure, it cannot guarantee that this information is correct, complete and up to date. Therefore Levenbach Advocaten accepts no responsibility for the completeness or accuracy of any of the information in this brochure and makes no representations about its suitability for any particular purpose. Levenbach Advocaten made every effort to ensure that the information in this brochure is accurate and comprehensive. However, the information is only intended as a basic guide to Dutch law, and does not address the complexities of particular circumstances. Levenbach Advocaten can therefore not accept liability for any direct or indirect damages arising from the use of the information contained in this brochure, including the inaccuracy of any information. No rights can be derived in any way from, and no claims can be brought in respect of, the contents of this brochure. Unless otherwise indicated, all rights, including authors’ rights and other intellectual property rights in respect of the brochure and the information contained therein are retained by Levenbach Advocaten.

Gepubliceerd May. 2022
Geschreven door: Aernout Zappey