Cabinet set to ban zero-hour contracts, make disability cover mandatory for freelancers

The Dutch government, employers, and trade unions want to give workers more certainty in the labor market. They, therefore, agreed to make permanent contracts the starting point, ban zero-hour contracts, and provide temporary workers with fixed contracts more quickly. It will also be compulsory for self-employed and freelancers to take out disability insurance so that they have a safety net if they fall ill.

The rules for temporary contracts are becoming stricter. After three consecutive temporary contracts at the same employer, the employer can only give another temporary contract after five years instead of six months. That must put an end to revolving door constructions, in which workers endlessly go from temporary contract to temporary contract. On-call workers will receive a fixed basic contract stating the number of hours for which they are scheduled as a minimum.

“Security in your job ensures that you know when you work, that you know that you can make ends meet next month and that you can make plans for the future. Too many employees with a flexible contract or self-employed do not have that certainty,” said Minister Karien van Gennip of Social Affairs and Employment. “This package of measures ensures a labor market that is better balanced, future-proof, and, moreover, we maintain mutual solidarity.”

The government is also changing the rules for entrepreneurs so that they can get clarity on whether they can replace an employee after one year of illness. There will also be a scheme to help retain staff in a crisis that falls outside of the entrepreneurial risk, such as a global pandemic. In such a case, employees can work less or find work elsewhere for six months without losing their unemployment benefit rights.

Trade union FNV is pleased that the government agreed to make permanent contracts the norm and ensure employers can’t abuse flexible contracts. “Then people will no longer get stuck endlessly in poorly paid, temporary, and on-call jobs. And labor migrants will no longer be outlaws. Moreover, employers will then invest more in employees, and that will also benefit our social security,” said chairman Tuur Elzinga to NU.nl.