Major labor law reform to ban zero-hours contracts

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The Eerste Kamer voted as expected to pass a landmark labor bill. The new legislation guarantees flexible workers greater financial stability and predictable working hours. A large majority in the Senate approved the measure, allowing the law to take effect in 2028. Under the new rules, employers can only issue temporary contracts for genuinely flexible tasks. The legislation completely bans zero-hours contracts.

“Work must provide people with security,” stated Social Affairs Minister Hans Vijlbrief. “Workers need certainty regarding their hours and their income level. That foundation provides a stable base to plan your life and develop your potential. With this bill, we tackle market abuses.”

The new law ends revolving-door practices that employers use to keep workers on insecure contracts indefinitely. Current regulations allow companies to hire a worker on a new temporary contract after a six-month break. This break follows their third consecutive fixed-term agreement. The new legislation extends this mandatory waiting period to three years.

Part of a broader economic overhaul

Flexible employment remains possible, Vijlbrief emphasized during the Senate debate. Right-wing parties had raised concerns about mounting regulatory burdens on businesses. However, companies may now only use flexible labor for temporary tasks, sick leave cover, or youth entry positions. The minister explained that the law restores the balance of power between employers and employees.

The bill forms part of a broader labor market overhaul. Former CDA minister Karien van Gennip initiated this project in 2023. The overhaul followed an influential report by a committee under former top civil servant Hans Borstlap. In 2020, Borstlap warned about a growing disparity between permanent and flexible employment structures.

The cabinet also had a strong financial incentive to guide the legislation through the Senate. This specific labor market reform is a core component of the revised pandemic recovery plan. The Netherlands submitted this plan to the European Commission. The timely release of 600 million euros from the European Recovery and Resilience Facility depended directly on the passage of this law.

@ anp | NEWS BRAINPORT

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