It is unlikely to have escaped your attention: the Balanced Labour Market Act will enter into force on 1 January 2020. This has consequences for every employer and therefore also for you! There are consequences for your personnel policy, and also for your payroll administration. On this page we aim to inform you about what this means for you in concrete terms.
What exactly is changing?
What does it mean for you as an employer?
We can categorise the biggest changes into two subjects:
1. Contribution differential for unemployment insurance (Deduction of unemployment insurance contributions: low or high?)
As of January 1, 2020, the sectoral classification no longer determines the deduction of unemployment insurance contributions for your employees. From then on, this takes place based on the type of the employment contract. The diagram below shows what applies to your employees.
We identify four situations. In order to be able to apply the low contribution in the payroll administration, we require a number of details from your entire workforce. Below, you will find four different explanations that you can use to indicate what applies to your situation. Multiple situations may apply to your employees.
Would you please return the applicable statements to us as soon as possible and no later than November 22?
The employer pays the low unemployment insurance contribution if the following conditions are met:
- there is a written employment contract for an indefinite period of time;
- which is included in the administration of the employer;
- in which a fixed number of hours is specified;
- and there is no on-call contract or percentage of hours worked on an on-call basis. Please note: a min-max contract is also regarded by the tax authorities as an on-call contract!
Does this situation apply in your organisation? Then please complete Declaration 1.
CAUTION: The high unemployment insurance contribution still applies retroactively in the following cases:
- if the employment contract ends no later than two months after the start of the employment;
- if 30% more hours are paid in a calendar year than specified in the employment contract. For example, if the employee has a contract for 20 hours a week, but works an average of 32 hours a week.
The employer pays the low unemployment insurance contribution if the employee is aged under 21 and is paid for a maximum of 48 hours (per reporting period of four weeks) or 52 hours (per reporting period of a calendar month).
Does this situation apply in your organisation? Then please complete Declaration 2.
The employer pays the low unemployment insurance contribution if the employee is a student who is following a Vocational Learning Pathway (BBL). The agreement with the BBL student must be signed by the relevant parties, be provided with a date and be included in the administration of the employer.
Does this situation apply in your organisation? Then please complete Declaration 3.
The employer pays the low unemployment insurance contribution if an employee insurance benefit (WW, SW, WIA, WAO, WAZO) is paid or if you bear the insurance risk yourself. You may also apply the low unemployment insurance contribution for this payment.
Does this situation apply in your organisation? Then please complete Declaration 4.
Would you please return the applicable statements to us as soon as possible? That way you will prevent us from having to apply the high unemployment insurance contribution to your entire workforce. You can return the completed statements by emailing your regular contact person for your salary administration or submitting them via email@example.com.
2. On-call contracts
As of January 1, 2020, you are obliged to make your on-call workers a written offer for a fixed number of hours after twelve months. These hours must be at least equal to the average number of hours in the previous twelve months. Will you not be making this offer? Then your on-call worker will automatically be entitled to the average number of hours. The employee can file a wage claim for these hours up to five years later.
What action do you need to take?
- Check your current workforce and notify us of your on-call workers who already left employment before 2020. Notify us of every on-call worker who leaves employment.
- Talk to your employee. Our advice is to do this before 2020.
You are required to make this offer again every year. Are you doing this before 2020? Then you can determine a number of hours in consultation with your employee. Will you be doing this after December 31, 2019? Then you must make an offer to your employee based on the average number of hours in the previous year.
Our advice: take action and arrange everything on time
As you can see, the Balanced Labour Market Act involves quite a few changes. Our advice to you is therefore to arrange everything in the short term, so that you will not be faced with any unpleasant surprises.
Do you have any questions or would you like more information?
Our team of specialists is ready to help you. Please contact us at firstname.lastname@example.org. We look forward to helping you further!