Netherlands to end zero-hour work contracts, limit flexible employment with Senate vote

The Dutch Senate has approved legislation aimed at giving flexible workers greater certainty over their income and working hours. The bill passed with a comfortable majority, clearing the way for the new rules to take effect in 2028. Under the legislation, temporary contracts will generally only be allowed for work that is inherently flexible, while zero-hour contracts will be phased out.

Social Affairs Minister Hans Vijlbrief said work should offer people greater certainty. "People deserve security about how many hours they will work and how much they will earn. That provides a stable foundation for planning their future and developing themselves. This legislation is designed to tackle the worst excesses of the flexible labor market," he said.

The legislation also closes a loophole that has allowed employers to keep workers on insecure contracts through so-called revolving-door arrangements. At present, employees can return on a new temporary contract just six months after their third fixed-term contract expires. Under the new law, employers will have to wait three years before offering another temporary contract.

Vijlbrief stressed during the Senate debate that flexible employment will remain an option despite concerns from mainly right-wing parties about growing regulatory burdens.

Under the new rules, however, temporary contracts will generally be limited to genuinely temporary work, covering for sick employees, or serving as "a stepping stone for young people." The minister said the legislation is designed to "restore the balance of power between employers and employees."

The legislation forms part of a wider overhaul of the Dutch labor market initiated in 2023 by former CDA minister Karien van Gennip. The reforms stem from a 2020 report by a committee led by former top civil servant Hans Borstlap, which warned that the gap between permanent and flexible employment had become increasingly unbalanced.

The government also had a financial incentive to ensure the bill passed the Senate. The labor market reform is included in the Netherlands' revised post-pandemic recovery plan submitted to the European Commission, and approval is a condition for receiving 600 million euros from the EU's Recovery and Resilience Facility.

The FNV trade union welcomed the Senate's approval of the legislation as a significant step toward improving job security for flexible workers. At the same time, it warned that precarious employment could simply move into other contractual arrangements if the government fails to implement the full package of reforms. The union also emphasized that robust enforcement will be essential to ensure employers do not find ways to sidestep the new rules.

FNV said the legislation was a positive step but warned that further action is needed. "Today there is reason for optimism, but we are not there yet. If one form of insecure work is addressed while another, such as bogus self-employment, remains an option, too little will change overall," the union said.