Labour law

What is labour law? Labour law is the entirety of legal rules that governs the relations between employers and employees. Labour law provides extensive regulations for the hiring and dismissal of employees.

Labour law: protection of employees

Within labour law, the protection of employees is paramount. The aim of labour law is to create more balance between the employer and the employee. Without the rules of labour law, an employer would have a significant dominant position vis-à-vis the employee.

Why is it important to have knowledge of labour law?

It is important for every employer to have some knowledge of labour law. There are several reasons for this. First of all: the Image. An employer who abides by the rules arising from labour law will have a better image than an employer who does not. When an organisation has a bad image, it becomes difficult to find good employees. Secondly: it will save an employer expenses when he abides by labour law. If an employer does not comply with labour law, he can be held liable for this and compensation must be paid to the injured employee. It is also possible that a procedure is started for which the employer then has to hire a lawyer. Last but not least, it improves the working atmosphere. If an employer complies with certain provisions of labour law, such as the working hours regulations, the working atmosphere will be promoted and personnel will remain motivated. An example of a situation in which failure to comply with labour law will lead to unmotivated employees is the example in which an employer repeatedly asks if employees want to work overtime, without being paid for it. In the long run, this will cause dissatisfaction among employees. They will therefore become less motivated to carry out their work properly.

WAB

Labour law is subject to politics and therefore changes frequently.

January 1st, 2020, labour law had been amended by the Labour Market in Balance Act (Wet Arbeidsmarkt in Balans). The most important changes are:

  • There is a new ground for dismissal, currently the law has an exhaustive list of reasons under which employees can be dismissed. However, in order to achieve a successful dismissal, one of these grounds must always be met completely. This is often a problem. The new ground for dismissal will ensure that the existing grounds for dismissal can be combined. 
  • Employees will be entitled to transition compensation (severance pay) from the first day of their employment, including during the probationary period. As a result, the dismissal of employees with a short-term employment contract will become more expensive. Previously, employees were only entitled to a transition allowance when they had been employed for (at least) two years.
  • The chain scheme will be broadened again. Instead of three temporary employment contracts within 24 months, an employee may now receive three temporary employment contracts within 36 months.

Do you have an employment law question or do you want to know whether your organisation is ready for the Labour Market in Balance Act? Then please contact us. There are no further obligations or expectations in connection to this. 

Specialist labour law

Labour law is important for the relationship between employer and employee.
Innovation / Growth / Commitment

Lawyer labour law

Do you have questions about this subject? We can help you with this. Contact us without obligation!