Extended Possibility to Offer Young People a Fixed Term Employment Contract
Due to the economic crisis many companies are currently cutting
their workforce and temporary workers are the first to be laid off.
It is especially young people who are facing the consequences.
Compared to last year, youth unemployment has risen sharply from
8.6% to 10.7%, while general unemployment is much lower (4.6%). One
of the measures Cabinet is taking to keep young people working is
the bill to amend Section 7:668a of the Dutch Civil Code
("BW").
Contents of the Bill
The current Section 7:668a BW provides that if fixed-term
employment contracts have succeeded one another over a period of 36
months or more at intervals of at most 3 months, or more than three
fixed-term employment contracts have been concluded with the
employee, the last then-current employment contract shall be deemed
to have been entered into for an indefinite period of time. The
bill proposes a change by which for employees up to the age of 27,
the last then-current employment contract shall be deemed to have
been entered into for an indefinite period of time only after 48
months, or when it is the fifth employment contract. This means
that for young people the current term is extended and that it will
be possible to offer them a fourth successive fixed-term employment
contract without an employment contract for an indefinite period of
time being created. With this measure Cabinet intends to increase
the chance that employers will continue their employment
relationship with young people already in their service. It is also
expected that it will become more attractive for employers to enter
into an employment relationship with young
people.
Status of the Bill
On 17 September 2009, the bill was sent to the Dutch Lower House
of Parliament. Its intended entry into force is in January 2010.
The arrangement proposed is temporary and will lapse as of 1
January 2012. However, the bill does contain the option of changing
this expiry date by Royal Decree.
Points of
Attention:
- If the bill will be adopted, this will not have any
consequences for existing and future collective bargaining
agreements ("CBA") that contain deviations from
Section 7:668a BW. This means that the number of successive
fixed-term employment contracts as agreed in a CBA will
continue to apply also after the law has been amended.
- The amendment will not have any consequences for employees
who already fulfill the requirements of the present Section
7:668a BW when the new section enters into force. For employees
who have already been employed for more than 36 months under
fixed-term employment contracts, or who are working under a
fourth fixed-term employment contract, the provision continues
to apply that pursuant to the present Section 7:668a BW the
last then-current employment contract will apply for an
indefinite period of time. At the time when the new arrangement
expires, it will still remain applicable to employees who
fulfill the conditions of the present Section 7:668a BW at the
time of expiry (more than 36 months employment or a fourth
employment contract); this group of employees will only have an
employment contract for an indefinite period of time after 48
months, or when they start their fifth employment
contract.