The cabinet and the social partners have agreed on a sizeable package of measures for the future of the labour market.
The main points are:
- The 4.5 billion austerity programme for 2014 will be ignored completely. It will be assessed if it will be necessary to take further action for 2014 in August. Because of this, the announced income freeze for the government and for the care sector is cancelled.
- The arrangements made by the coalition agreement on the unemployment benefit term are slashed. Instead, the unemployment benefit term will be shortened gradually from 2016 onwards to two years. Arrangements concerning a longer benefit term may be made per sector.
- The law on dismissal will be tackled. In the case of economic reasons or becoming disabled, the UWV will remain the authority in charge. Should there be a conflict, then the magistrate decides.
- The quota for disabled workers will be cancelled. Instead, employers have committed to hire disabled employees. This should ensure that from 2020 onwards, 10,000 disabled workers will find a place on the labour market annually. If employers do not reach that number, a legal quota will be reinstated. The law will remain the big stick in the meantime.
- The position of flex workers will be made stronger. This to ensure that they will find a steady job sooner and also to deal with false constructions.
- When dismissed, employees who had a two year contract will receive a transition compensation in order to find new employment or do retraining. The compensation will rise with each year worked. For workers over the age of 50, there will be an arrangement made.
- 35 Work Plazas (cooperative structures set up by the Social Services Department and the Centre for Employment) will be realized. Here, people can be assisted in finding employment.
- The fiscal arrangement for pension building will be reduced by 0.4 per cent. The facilitation of pension over a pension rendering wage of 100,000 euro or over will also be cancelled. Social partners will, however, be given some time to make adjustments until the end of May.
- A more lenient transition arrangement will be instated for people who have become victims of the AOW (Old Age Pension Act) increase since the first of January of this year. The arrangement has been extended to participants with an income up to 200 per cent of the minimum wage.
- Young people on disability benefits (Wajong) will be re-examined. From 2015 onwards the arrangement will only be applicable to people who are completely and permanently disabled.
- The government will replenish the wages of disabled workers with labour cost subsidies up to a minimum wage.
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