van het Kaar, Robbert

The tripartite Social and Economic Council has unanimously agreed guidelines aimed at securing a sustainable labour market in the Netherlands. The guidelines propose changes to the financing of the unemployment benefit system.

The Netherlands’ new Act on Work and Security will change employment and dismissal law. The aim is to create a new balance between ‘insiders’ – permanent employees who have high levels of protection – and ‘outsiders’, flexible workers who have little or no protection. The act was passed in July 2014 and comes into force in 2015.

Conflicting laws have led to confusion in the Netherlands over how much influence works councils can have on company pension arrangements. The Social and Economic Council (SER) suggested ways of clarifying this in June, after being asked for its advice by the Deputy Minister of Social Affairs and Employment Jetta Klijnsma.

The entry into force of the Clawback Act at the start of 2014 in the Netherlands makes possible the reduction of executive bonuses and severance payments, and the reclaiming of payments ('clawback') after they have been awarded, if they are deemed unfair. It applies to all public limited companies, financial enterprises and cooperatives. While the act does not introduce new clawback rights as such, it does make existing rights more explicit.

At the end of 2013, the Ministry of Social Affairs and Employment in the Netherlands (SZW [1]) published its annual report [2] on collective agreements in the country. The report covers developments in collective agreements in the Netherlands in 2012 and, where information is available, in 2013. [1] http://www.government.nl/ministries/szw [2] http://www.rijksoverheid.nl/documenten-en-publicaties/rapporten/2013/12/02/rapportage-cao-afspraken-2012.html

The Works Councils Act (WOR [1]) was first enacted in 1950. There have been seven major revisions of the act since it first came into force (*NL9709130F* [2]). An eighth revision has been made this year, 15 years after the last significant changes, and came into force on 19 July 2013. [1] http://www.or.nl/entree/wenrteksten/wor.html [2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/amendment-of-the-dutch-works-councils-act-a-few-surprises

In the Netherlands, successive governments and parliaments have generally supported the collective bargaining system. However, there are some worries that falling union membership might compromise the legitimacy of collective agreements in the future.

Key decisions were taken about the structure of the biggest employee organisation in the Netherlands, the Dutch Trade Federation (FNV [1]) which has 1.3 million members, at a conference held on 8 and 9 October 2012. [1] http://www.fnv.nl/english

A requirement for temporary employment agencies to hold an operating permit was scrapped in 1998. In the thirteen years since then, the number of temporary employment agencies has multiplied, especially those that are involved with illegal workers. For some time, the social partners have been calling for stricter supervision and heavier sanctions for illegal practices.

On 21 June 2011, it was announced that agreement had been reached between global pharmaceuticals company Merck [1] and the Dutch government to retain some of the jobs at the research centre of its subsidiary Organon, based at Oss in the Netherlands. The agreement includes the establishment of a life-sciences park to employ the 540 researchers who will be dismissed from Merck. Of the remaining researchers, 100 will join Merck’s production team and 486 will remain in service. [1] http://www.merck.com