Employment contract for a fixed or indefinite period
By applying a difference in WW premium for permanent and flexible employment contracts, the government aims to encourage the conclusion of permanent employment contracts. It is important that the employer and employee enter into an employment contract for an indefinite period of time in writing, as this is a requirement for the right to a lower WW premium. Employment contracts that do not specify hours are also not eligible for a lower WW premium.
Indulgence regime
Before the entry into force of the Wab, in which the written requirement is laid down as a clear and strict requirement, by no means every employer complied with entering into a written contract of employment for an indefinite period of time. The same applies to converting a fixed-term employment contract into a contract for an indefinite period. For employers who do not meet the requirement of a written form, the coulisse regime has been created, so that employers can still claim the lower WW-premium in this way.
The indulgence regime can be used by employers who converted a fixed-term employment contract into an employment contract for an indefinite period of time before the 1st of January 2020, but who have not met the requirement of written form. They can make use of this scheme until the 30th of June 2020 by attaching a written and signed annex to the original employment contract, showing that the employee has a permanent employment contract, for an indefinite period, with a specified number of hours.
Exceptions
If the employment ceases within two months after entering into the employment contract for an indefinite period of time, the higher WW premium will still apply, with retroactive effect. The higher WW premium also applies to employees who annually work 30% more than they agreed with the employer in the employment contract.
Contact
Do you have questions about the premium differentiation? Or do you think you can make use of the coupon scheme? Please contact Legal Q! We will be happy to see what we can do for you!