More Flexible Dismissal Regulations to Yield Billions

By: Together Abroad 20-06-2012 9:51 AM
Categories: Business news, Tips for internationals,

THE HAGUE – More flexible dismissal regulations will increase labour productivity by 0.4 percent, or an annual 2.5 billion euro increase in affluence.
Minister Henk Kamp of Social Affairs wrote this in a letter to the Lower Chamber. Minister Kamp has sent the Chamber the details of the plans to relax dismissal regulations stated in the ‘Lenteakkoord’ (Spring Agreement) by the VVD, CDA, D66, GroenLinks and the ChristenUnie. The cabinet is in agreement. According to minister Kamp these measures will make it easier for older workers to move on to another job. Now, they are often stuck in their current job because they would lose the right to a large severance pay should they move on to another job.
Mobility

According to the minister, mobility will ensure employees finding the right job to suit their abilities quicker and easier. The recommendations will also ensure the divide between permanent and temporary contracts to become less and provide more schooling. Currently, employers need consent of the benefit authority UWV or a cantonal judge should they want to dismiss an employee. Following the ‘Lenteakkoord’, Minister Kamp reverses this procedure.
Dismissal

A business will be allowed to dismiss an employee with a 2 month term of notice without a preceding consent from 2014 onwards. However, a hearing in which the employee may respond to the dismissal should take place. Should he or she wish to contest the dismissal, he or she will be able to do so in court. The severance pay will be turned in to a ‘transition budget’ for schooling or coaching for a different position. It will amount to a quarter of a monthly salary per working year with a maximum of half a year’s salary. In the current situation, employees may receive much larger amounts, depending on age and length of service.
Temporary Contract

In principle the transition budget is also meant for employees on a temporary contract. It is being looked into whether or not recently made training costs may be settled by the transition budget. Employers will be paying the first 6 months of WW (unemployment benefit). This will motivate them to get the dismissed employee working somewhere else as soon as possible. The government will save 1 billion euro annually.
Source: © ANP

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