Balanced Labour Market Act

On January 1, 2020, the Balanced Labor Market Act (Wet arbeidsmarkt in balans) came into effect, bringing several changes to labor law.

A notable change is the introduction of a new ground for dismissal: the so-called cumulative ground. This new ground allows for various reasons for dismissal (such as underperformance or a disrupted working relationship) to collectively constitute a reasonable ground for dismissal. In such cases, the court may award additional compensation to the employee.

Furthermore, employees are entitled to a transition compensation from the first day of work upon dismissal. The calculation of the transition compensation has also been adjusted. The rules for on-call contracts and payrolling have been particularly revised and tightened.

The lawyers at De Haij & Van der Wende can assist you in incorporating these new labor law regulations into employment contracts or company regulations. We also regularly conduct presentations on new labor law legislation and can organize these presentations at your location.