Restart After Bankruptcy: Years of Service Prior to Bankruptcy Also Count Toward Transition Payment
Companies that are dealing with, or have dealt with, a restart after bankruptcy should take note. The subdistrict court in Arnhem recently ruled that in cases of successive employership, the full period of employment prior to the date of bankruptcy counts toward the calculation of the transition payment when parting ways with employees originating from the bankrupt company.
WAB approaching
On May 28, 2019, the Senate passed the Balanced Labour Market Act (Wet arbeidsmarkt in balans, WAB). This act will enter into force on January 1, 2020.
The WAB contains a package of measures in the field of employment law (including dismissal law, transition payments, the chain provision, payrolling) and social security (differentiation of unemployment insurance contributions based on contract duration). The package of measures aims to reduce the gap between flexible and permanent employment in the labor market.
Balanced Labor Market Act Bill
The coalition agreement of October 10, 2017, announced several measures regarding labor and dismissal law to create a new balance in the labor market. The announced measures are included in the new Balanced Labor Market Act bill (hereinafter referred to as “Wab”), which was submitted for online consultation in draft form on April 9, 2018. The online consultation, which received no fewer than 278 responses, has since closed. The final bill is scheduled to be submitted to the House of Representatives this fall (following advice from the Council of State).
