Below is an overview of the main changes proposed in the Wab:

Reasonable grounds for dismissal
A new ground, the cumulative ground (i-ground), is being added to the eight reasonable grounds for dismissal. This makes dismissal possible based on a combination of circumstances. Currently, an employer must fully meet one of the eight grounds for dismissal. With this new ninth ground, the Wab allows the court to combine two or more grounds for dismissal (grounds c through h). The court may also proceed with the dissolution of the employment contract on the i-ground without the cumulative ground being explicitly cited by the employer as a ground for dismissal.

The cumulative ground cannot be used to combine dismissal for business economic reasons (a-ground) and/or long-term incapacity for work (b-ground) with another ground for dismissal.

If the court dissolves the employment contract on the cumulative ground, the employee may receive additional compensation of up to half of the transition payment (in addition to the transition payment itself).

Transition payment
Employees will be entitled to a transition payment from the first day of the employment contract.

The accrual of the transition payment will be reduced for long-term employment. Specifically, the increase in the transition payment after ten years of employment will be abolished. The general rule for every employee will be that the transition payment equals 1/3 of the gross monthly salary per year of service.

In the calculation of the transition payment, rounding down to half years of service will no longer occur. Every day worked counts toward the calculation.

Training costs that enable the employee to perform a different role for the employer may be deducted from the transition payment.

A scheme will be introduced for small employers to compensate for the transition payment if they must terminate their business due to retirement or illness. This will be further detailed in supplementary regulations.

The compensation for the transition payment that an employer must pay upon dismissal following an employee’s long-term incapacity for work is included in the Wab. The rules for applying for compensation are set out in the ‘Draft regulation for compensation of transition payments upon termination of employment after long-term incapacity for work’.

Probationary period

The probationary period when entering into an indefinite employment contract will be extended from two to five months.

For a fixed-term employment contract of two years or longer, a probationary period of three months (instead of the current two) may be agreed upon.

If an employer terminates an indefinite employment contract during the probationary period, the employee can only be held to a non-compete clause if it is necessary due to compelling business or service interests and the employer provides a reasoned written or electronic notification to the employee.

An employee is also entitled to a transition payment following dismissal during the probationary period.

Chain provision
The succession of fixed-term employment contracts (the chain provision) will be expanded. Currently, it is possible to enter into three consecutive contracts over two years. This will be increased to three years.

It will also be possible to shorten the interval between a chain of fixed-term employment contracts from six to three months via a collective labor agreement (CBA) in cases of recurring temporary work that can be performed for a maximum of nine months per year.

Additionally, an exception to the chain provision will be introduced for substitute teachers in primary education who fill in due to illness.

Payrolling
Employees working on a payroll basis and/or seconded intra-concern must be offered the same employment conditions (both salary and secondary benefits) as employees directly employed by the client.

The definition of the temporary agency contract will not change. However, a definition of the payroll agreement will be included in a new statutory article. There will also be an article specifying rules tailored to the payroll agreement. For instance, the flexible regime for temporary employment agencies regarding the chain provision and termination of employment will be declared inapplicable to payrolling.

On-call agreement
Measures are being taken to prevent the mandatory permanent availability of on-call workers.

For example, an on-call worker must be called up in writing by the employer at least four days in advance. If the employer calls them up on shorter notice, the on-call worker is not required to comply (though they may choose to do so). If the on-call worker does not comply with such a call, they are not entitled to wages.

The four-day notice period may be shortened to one day via a collective labor agreement.

The on-call worker retains the right to wages for the period for which they were called up if the employer cancels the call four days or less in advance.

The cancellation of the call by the employer must be done in writing. If the cancellation is made verbally, the employer is still liable for the wages. The timing of the cancellation is irrelevant in this case.

After one year of working on the basis of an on-call agreement, the employer must offer the on-call worker a fixed number of hours.

The on-call worker may observe a shorter notice period of (at least) four days.

Unemployment insurance (WW) contributions
There will be two types of WW contributions: high and low. WW contributions will be more favorable for employers if they offer an employee a permanent job instead of a temporary contract. Currently, the level of the WW contribution depends on the sector in which a company operates. This sectoral WW contribution will be abolished.

The intended commencement date of the Wab is January 1, 2020. The starting point is that the various changes will have immediate effect, unless otherwise indicated (for example, transitional law for the new rules regarding the transition payment).

All in all, the Wab brings about extensive and far-reaching changes. Criticism of this bill has already been voiced from various quarters. As soon as more is known about the proposed changes, we will, of course, keep you informed. Should you have any questions regarding the Wab, please contact us.