Labor Market in Balance Act (WAB)
The labor Market in Balance Act aims to make it more attractive for employers to give employees an indefinite contract. A number of changes will be implemented by the WAB. Among other things in the chain provision, on-call workers, transition payment and premium differentiation.
Chain provision
The chain provision (period of successive contracts) is now 2 years and it will be 3 years again in 2020.
On-call workers
On-call workers with a zero-hour contract or a min/max contract are only required to come and work if you call them up at least 4 days in advance. Otherwise the on-call worker has the right to refuse the work. If a call to work is canceled less than 4 days in advance, you are obliged to pay the on-call worker. After a period of 12 months you are obliged to offer a contract to the on-call worker for the average number of hours that he has worked.
This means for the on-call workers who worked in 2019 you must have prepared a contract before 1 February 2020 the average number of hours that he has worked.
Transition fee
For the transition fee, a number of things also change in the conditions and the calculation.
- An employee is entitled to a transition allowance from the first day in service
- Transition payment accrual is lover with longer employment contracts. From 1 January 2020, the accrual will be 1/3 monthly salary per year of service. (from the day the employee starts working)
- Upon discharge o.g.v. The ground for cumulation possibility of an extra allowance (maximum half transition allowance)
- Compensation at the request of the employer by UWV of transition compensation in case of company termination from the 1st day due to illness or retirement (<25 employees)
Premiumdifferentiation WW
The ww premium currently has a sector classification. From January 1st 2020 this sector classification for unemployment will be cancelled. This sector classification will continue to apply to the WHK premium, but this will also change over time. From January 1st will be a high and a low percentage for the unemployment insurance premium. The low premium will be 2,94% an the high premium 7,94%. You can apply the low unemployment benefit if the contract indications below are set as follows;
1. Contract for an indefinite period Yes
2. Written employment contract Yes
3. Call agreement No
If any of the contract indications is different (for example: contract for an indefinite period is No) the high unemployment benefit must apply. There are 2 exceptions on this rule: Call agreement employee under 21 year and a maximum of 52 hours a month and a BBL student.
The reference date is the 1st day of the tax return period.
There are situation where it turns out afterwards that you still have to apply the high premium instead of the low. We can of course inform you in which situations this occurs.