In a recent blog we wrote about the contribution differentiation for unemployment insurance (WW-premiedifferentiatie) to be introduced on 1 January 2020 when the Balanced Labour Market Act enters into force. Employers will be given a 5% reduction on their unemployment insurance contributions for open-ended employment contracts, as long as they are not on-call contracts.
Increased administrative load
This benefit will, however, increase the administrative burden, as salary slips will now have to state whether the contract in question is open-ended or on-call and whether it has been agreed in writing. The employer will also have to be in possession of a written open-ended employment contract that has been signed by both parties.
Written employment contract
Generally, employers will not be able to meet this particular requirement. This will, for example, be the case if the employer’s policy is to unilaterally confirm in writing that it is going to extend the employment contract indefinitely or tacitly.
Preparing a new employment contract takes time. Employees may also be wary of signing a new employment contract which makes it difficult for the employer – particularly if it is a big company – to get back a signed copy. We have therefore prepared a one-pager for you based on which, on the one hand, you meet the requirements for the low unemployment insurance contribution and, on the other hand, gives employees the assurance that their terms of employment will not change. You could for example issue this one-pager to employees and ask them to sign it during the next round of evaluations.
If a non-compete clause or a non-solicitation clause and/or a non-recruitment clause has been agreed with an employee, it would be advisable to reconfirm this/these in order to prevent any discussions about the written requirement no longer being met. The one-pager includes an optional provision for this.
Use this link to download the document: confirmation employment agreement for an indefinite time
Eric van Dam (email@example.com / +31 20 820 0330)