{"id":30462,"date":"2021-03-08T15:01:26","date_gmt":"2021-03-08T15:01:26","guid":{"rendered":"https:\/\/thelegalcompany.nl\/?p=30462"},"modified":"2026-09-02T17:12:39","modified_gmt":"2026-09-02T17:12:39","slug":"the-2025-labour-code-draws-closer-5-major-changes-in-employment-law","status":"publish","type":"post","link":"https:\/\/thelegalcompany.nl\/en\/the-2025-labour-code-draws-closer-5-major-changes-in-employment-law\/","title":{"rendered":"The 2025 Labour Code draws closer: 5 major changes in employment law"},"content":{"rendered":"\n

It is going to be one of the key themes at the upcoming elections: the reform of employment law. The corona crisis has definitively made clear that the labour market urgently needs an overhaul. A committee of employment law experts already drew up a vision for the future at the end of 2019, commissioned by the cabinet. This is the “Wetboek van Werk” (“Labour Code”) 2025, with far-reaching proposals to make the labour market healthy again.<\/span><\/p>\n

In the meantime, we as employment lawyers have also already been able to have our say on the new regulations. What is in the Labour Code, and what changes can we expect in the coming years?<\/span><\/p>\n

Background
<\/strong>With the introduction of the Balanced Labour Market Act (WAB) on 1 January 2020, the government already tried to give more protection to flexible workers and to make flexible work less attractive. However, these were mainly improvements and repairs to the existing system. A few weeks later, at the end of January 2020, the Borstlap committee concluded that the rules for work were far too complicated and the differences between permanent and flexible work too great. The only solution was to overhaul the entire system after all. Barely two months later, the corona crisis painfully made clear that swift action was needed. Temporary and on-call workers were the first to be let go and had to rely on unemployment benefits. For many (falsely) self-employed people, the corona crisis directly led to a loss of income without a proper social safety net. This while permanent staff, who sometimes did the same work, did not need to fear for their jobs. As a result, tackling the labour market has risen high on the political agenda.<\/span><\/p>\n

What is in the Labour Code, and what employment-law changes can we expect in the coming years?<\/span><\/p>\n

    \n
  1. Shortening continued pay during illness<\/strong><\/span><\/li>\n<\/ol>\n

    In practice we notice that the two-year mandatory continued pay obligation during illness is the reason why employers choose flexible workers and (falsely) self-employed people. Where the average continued-pay obligation during illness in the EU is around six weeks, in the Netherlands it is therefore 104 weeks. In addition, the rules for reintegration are complicated and form too heavy a burden, especially for SME employers. If the reintegration process is not carried out adequately, the employer also runs the risk of an extra year’s wage sanction. No wonder, then, that employers try to postpone permanent contracts for as long as possible. The Labour Code proposes reducing the employer’s continued-pay obligation to just six weeks. After that period, wages are paid from private collective insurance schemes. The so-called “Werkhub” (“Work Hub”) becomes responsible for reintegration.<\/span><\/p>\n

    In our view, this is a much-needed relief, especially for SMEs, which will also lead to more permanent contracts. If the government really wants to reduce the number of flexible workers, the problem must be tackled at its source. Fortunately, many political parties now also believe that the continued-pay obligation during illness is too long. We hope, therefore, that we can look forward to a shortening in the coming years.<\/span><\/p>\n

      \n
    1. Dismissal protection for all types of working relationships<\/strong><\/span><\/li>\n<\/ol>\n

      Flexible workers and self-employed people have less legal protection than regular employees. This is another reason why employers want to avoid permanent contracts and prefer to work with flexible workers or self-employed people. The Labour Code proposes giving every working relationship the same legal protection. A reasonable ground is still needed for termination. A big difference with the current system is that this reasonable ground will only be tested afterwards, by a specialised employment judge. It will then no longer be necessary to first go to the UWV (in the case of dismissal for economic reasons) or to the subdistrict court (in the case of dismissal for personal reasons). This also makes it simpler to terminate permanent contracts. In our practice, we notice that the current dismissal rules, especially for SME employers, are too complicated and the dismissal procedure too costly.<\/span><\/p>\n

      An easing in the area of dismissal is, in our view, certainly welcome \u2014 though of course a reasonable ground for dismissal must still be present. In addition, dismissal protection for all types of workers ensures that the flight into (false) self-employment is also stopped. It remains to be seen whether these major changes will actually happen. Dismissal law was already eased somewhat last year because of the WAB, and many political parties are against further easing. In the coming years we expect that an extensive dismissal file will still be required before the employer may proceed to dismissal. Only after the introduction of this rule will the pressure to build a file start to decrease.<\/span><\/p>\n

        \n
      1. Abolition of the transition payment and more focus on development<\/strong><\/span><\/li>\n<\/ol>\n

        The Labour Code proposes abolishing the transition payment. The intention of the transition payment was to provide a budget for a smooth transition to the next job. In practice it has turned out that the transition payment is mainly used as a supplement to unemployment benefit, so that income stays at a decent level during unemployment. A pleasant income top-up, then, to soften the blow. Rarely is the budget (by employer or employee) used for training or retraining. In addition, we notice in practice that the transition payment, especially for small employers, is still experienced as a big financial blow upon dismissal. Dismissal is therefore sometimes not carried out, or is postponed, for example, until retirement age, even though there is valid reason to dismiss the employee. This is of course not good for the company’s operations. The Labour Code therefore proposes that, during unemployment, the worker can get training or retraining via the aforementioned Werkhub to improve their position in the labour market. In the 2021 election manifestos we fortunately also see more focus on the personal development and retraining of the worker. We believe that this would certainly be a good development for SMEs, spreading the costs of development and retraining, and abolishing the transition payment upon dismissal.<\/span><\/p>\n

          \n
        1. Removing tax advantages for the self-employed<\/strong><\/span><\/li>\n<\/ol>\n

          Flexible employment contracts (such as on-call contracts or temporary contracts) already became more expensive last year, after the introduction of the WAB, because of the higher unemployment insurance premium. But for self-employed people, there is still too much tax advantage. As a result, the self-employed person keeps more, net, every month. However, the self-employed person has little legal protection, cannot make use of a social safety net, and is often also not insured themselves for unemployment, incapacity for work, and pension. To arrange these provisions themselves, the self-employed person would actually have to charge an hourly rate far above the minimum wage. In low-paid sectors, that is usually not possible. As a result, too many self-employed people are uninsured and left to fend for themselves when their work dries up.<\/span><\/p>\n

          The Labour Code therefore proposes that all working people (employees or self-employed) receive equal tax treatment. Most political parties also agree that the financial advantages for self-employed people should be reduced. We can therefore certainly expect tax changes to take place in this area in the coming years.<\/span><\/p>\n

          We believe that where there is false self-employment and the absence of a financial safety net in the event of incapacity for work or loss of work, it is justified to remove the tax advantages. As long as this is combined with the eases for employers, such as dropping the preventive dismissal test and shortening the continued pay during illness.<\/span><\/p>\n

            \n
          1. Combating false self-employment via the Pilot Webmodule ZZP<\/strong><\/span><\/li>\n<\/ol>\n

            Finally, one more addition that is not in the Labour Code, but is nevertheless another important change in the labour market area. In mid-January 2021, the pilot phase of the Webmodule ZZP (self-employment web module) was launched, which runs until July 2021. Through this web module, employers can, by answering questions, find out whether their worker qualifies as a contract for services (self-employed person) or in fact as a (deemed) employment relationship. In the meantime, we have already filled in this web module a number of times together with our clients.<\/span><\/p>\n

            In our view, the web module works well and gives a clear result that the entrepreneur can work with further. It is, however, still somewhat too complex here and there to be filled in by the entrepreneur without legal help. Hopefully this web module, after some simplification, along with accompanying legislation, will then be definitively introduced at the end of this year. Many employers are craving clarity on whether a worker is really self-employed, or whether this person should have an employment contract. In the past, this difficult qualification has proven to be the pitfall of the DBA (Deregulation Assessment of Employment Relationships Act) and its predecessor, the VAR.<\/span><\/p>\n

            Read<\/span> here<\/a> our extensive blog about the ZZP web module<\/span><\/p>\n

            Conclusion<\/span>
            <\/strong>That concludes the 5 most important planned changes in employment law that employers, employees, clients and self-employed people need to take into account in the coming years. The proposals in the Labour Code are fairly radical, and it of course remains to be seen how much of this we will actually see. We will keep a close eye on this for you and continue to report on it, so that you can anticipate in good time.<\/span><\/p>\n

            Questions or advice?
            <\/strong>The corporate legal advisers of The Legal Company specialise in employment law. Do you have questions about current employment law, or about the DBA, DBA enforcement, and the current use of the ZZP web module? Then contact us by emailing info@thelegalcompany.nl, calling 020-3450152, or filling in our<\/span>             contact form<\/a> .<\/span><\/p>\n

            Would you like to stay directly informed of relevant legal developments for SMEs going forward? Sign up<\/span> here<\/a> for our monthly Legal Alert newsletter and follow our<\/span> company page on LinkedIn<\/a>.<\/p>\n

            Masterclass on flexible working relationships, 15 and 22 April 2021
            <\/strong>Employers and clients can limit the financial and legal risks of self-employed people and employees in even more ways. You can learn exactly how during our online masterclass Working with flexible workers on 15 and 22 April 2021.<\/span>             Click here for more information and to register<\/a>.<\/p>\n

            Nothing changes as constantly as laws and regulations. Please note that our blogs may no longer reflect current laws and regulations and may therefore be outdated. If you have questions or an issue relating to this blog, or wish to obtain legal assistance, please contact us.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":2,"featured_media":19529,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"page_builder":"","iawp_total_views":0,"footnotes":"","_et_pb_custom_css":""},"categories":[27],"tags":[],"class_list":["post-30462","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-arbeidsrecht"],"acf":[],"_et_pb_custom_css":"","yoast_head":"\nThe 2025 Labour Code draws closer: 5 major changes in employment law - The Legal Company<\/title>\n<meta name=\"description\" content=\"Wat staat er in het Wetboek van Werk en welke grote veranderingen kunnen we de komende jaren verwachten in het arbeidsrecht? 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