This information comes from the ‘Lenteakkoord’ (Spring Agreement) of political parties VVD, CDA, D66, GroenLinks and the ChristenUnie which was leaked to national newspaper ‘De Telegraaf’.
According to the five parties, dismissal should be checked after the fact instead of in advance, which is the case currently. This means that businesses will not have to ask permission for the dismissal of an employee with the benefit authority UWV or the cantonal judge (magistrate). After an internal hearing, the fired employee can make his or her way to the courts should he or she dispute the dismissal.
These new plans should quicken up the dismissal procedure by a great deal. Moreover, it should become a lot less costly for businesses. Now, the cantonal judge usually awards a compensation based on age and the employment period. Especially for older employees who have been working for the same employer for a long time, large amounts of money are involved. They sometimes are awarded two or three annual salaries. These compensations represent enormous costs for businesses.
In the new situation, severance pay will be reduced to a quarter of one month’s salary per year the employee has worked, with a maximum of half of an annual salary. These funds may be used for training or help in finding a new job.
Expectations are that businesses will take on new staff quicker if they are also able to get rid of them without breaking the bank. The Hague has been quarrelling about reforms in dismissal law for quite some years now.
On the other hand, the ‘Lenteakkoord’ also may make it less attractive to dismiss an employee. It so happens that the employer will have to pay the first six months of his or her WW-uitkering (unemployment benefit). The amount and term of the unemployment benefit remains as is.
Source: (c) ANP 2012 all rights reserved