New Dutch Law – Transparency is Key!

From Monday 1 August, as a result of an EU directive, a new law will come into force in the Netherlands to help promote transparent and predictable working conditions.

One of the key changes to be aware of is the extension of the employer’s obligation to provide information about the employee’s employment conditions, including working hours, the termination process, remuneration components and paid leave. Employers should review their employment contract templates to ensure the necessary areas are covered and update them as needed.

Other key changes relate to mandatory employer training and ancillary activities. From 1 August, the cost of any mandatory training will have to be covered by the employer and time spent by an employee on such training will be regarded as working time. It will no longer be possible to agree with the employee that they will repay all or part of the (mandatory) training costs after they leave employment, and any such existing clauses will be void. In addition, a general prohibition on performing ancillary activities will not be allowed, unless employers have an objective reason for restricting such activities (such as the health and safety of the employee). Without an objective reason, any contractual restrictions will also be void from 1 August.

Also under the new law, eligible employees will be entitled to apply for “more predictable and secure working conditions” (such as a more predictable schedule). Employers do not have to approve the application, but they must respond in writing within either 1 or 3 months (depending on the size of the employer).

Please get in touch with the MDR ONE team, if we can support you in any way to get ready for the upcoming changes in the Netherlands, including reviewing your employment contract templates, or advising further on any of the changes.

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