Littler Global Guide - Netherlands - Q4 2023

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

Download full Q4 2023 Global Guide Quarterly

New Hourly Minimum Wage System and Minimum Wage Raised as of January 1, 2024

New Legislation Enacted

Authors: Michelle Engberts, Associate, and Eva Schneiders, Associate – Clint | Littler

As of January 1, 2024, there will no longer be a monthly, weekly or daily minimum wage. Employers will be required by law to pay workers at least the hourly minimum wage which is the same for all employees aged 21 years and over. Employees younger than 21 years will receive an hourly minimum wage based on the mandatory hourly minimum, as in 2023.

In January and July of every year the statutory minimum wage is indexed. On January 1, 2024, the statutory minimum wage will increase by 3.75 % and will be EUR 13.27 gross per hour for fulltime employees ages 21 years and over.

Companies with More than 100 Employees Must Report Work-Related Fuel Emissions

New Legislation Enacted

Authors: Michelle Engberts, Associate, and Eva Schneiders, Associate – Clint | Littler

As of July 2024, employers with more than 100 employees will have to start tracking their employees' CO2 emissions. This will require employers to record the number of miles employees traveled, the means of transportation used, and the type of fuel used, especially for commuting.

Increased Protection for Whistleblowers

New Legislation/Legal Compliance

Authors: Michelle Engberts, Associate, and Eva Schneiders, Associate – Clint | Littler

The Whistleblowers Protection Act that went into effect on February 18, 2023, for companies with at least 250 employees now will apply to companies with 50 to 249 employees. The law has been modified to include additional protection and requirements.

Specifically, whistleblowers who have suffered retaliation will no longer have to prove that they were disadvantaged because of their report. The burden of proof will shift to the employers who will have to prove the disadvantage suffered by the employee is not related to reporting of suspected misconduct or violations. The scope of consequences suffered by employees will be broadened to include, among other things, intimidation, blacklisting, or bullying. The range of people protected has also been expanded to include not only employees and officials, but also volunteers, interns, self-employed contractors/freelancers, (sub)contractors, shareholders, and job applicants. Additionally, employers will be obliged to have a notification procedure in place that is subject to stricter requirements.

End of the “Unrestricted Substitution” Model Agreement as of January 1, 2024

Precedential Decision by Judiciary or Regulatory Agency

Authors: Michelle Engberts, Associate, and Eva Schneiders, Associate – Clint | Littler

As of January 1, 2024, the Dutch Tax Authority has withdrawn model agreements, used as templates for contractor’s agreements, that provided for “unrestricted substitution,” which allowed the agreed upon work to be performed by others substituting for the contractor. The model agreements provided that the resulting relationship would not qualify as an employment relationship, and therefore no payroll taxes would be owed.

Bills to Appoint a Confidential Officer in Companies and to Tackle False Self-Employment

Proposed Bill or Initiative

Authors: Michelle Engberts, Associate, and Eva Schneiders, Associate – Clint | Littler

In the Netherlands, all employers have the duty to provide a safe working environment by preventing improper conduct and psychosocial strain among the employees. A bill has been introduced to make it mandatory for organizations with 10 employees or more to appoint a confidential officer (vertrouwenspersoon) to whom reports of improper conduct or unwelcome behavior in the workplace could be made. Confidential officers would be legally protected from dismissal or claims of retaliation for performance of their duties.

A separate bill has been introduced to grant more flexibility to entrepreneurs opting for self-employment (Verduidelijking beoordeling arbeidsrelaties en rechtsvermoeden) and clarify when a working relationship should be deemed employment and when it is self-employment. In addition, the bill would create a legal presumption that workers with an hourly rate lower than EUR 32.24 have an employment agreement. The employer would then have to prove that there is no employment contract.

Both bills are pending in the Dutch parliament. We will provide updates of any developments.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.