What is the impact of the new employment law?

Dutch employment law has undergone thorough reform in recent years. The WWZ (2015), WAB (2020), the EU Directive Implementation Act (2022), the Pensions Future Act (2023), and stricter enforcement regarding self-employment arrangements (2025) each have their own impact. For SME employers, this means new rules regarding contract types, transition payments, on-call workers, pensions, and self-employment relationships. Below are the most important changes and what they mean in concrete terms.

The major reforms at a glance

• WWZ (Employment and Security Act, 2015): introduction of the chain rule of 3 temporary employees in 3 years, transition payment upon dismissal, UWV/subdistrict court routes.
• WAB (Balanced Labour Market Act, 2020): higher unemployment insurance premium for flexible contracts, payroll as a separate category, stricter on-call contracts, transition payment from day 1.
• Act on the Implementation of EU Directives (2022): predictable employment conditions, extension of the duty to provide information under Article 7:655 of the Dutch Civil Code, minimum predictability of working time.
• Pension Future Act (2023, transition until 2028): from final salary/average salary to defined contribution schemes — pension schemes revised.
• Enforcement by the Self-Employed (2025): end of the enforcement moratorium for bogus self-employment structures; stricter monitoring by the Tax and Customs Administration.

What changes for SME employers?

Four practical consequences:

• Temporary contracts are more expensive. Higher unemployment insurance premiums for flexible workers (WAB). Offering a permanent contract is often more tax-efficient.
• On-call workers better protected. Four-day notice period, fixed annual offer of average hours, limitation on zero-hour contracts.
• Pension scheme revision. Under the WTP, the rules are changing — all existing schemes must be adjusted by 2028 at the latest.
• Stricter rules regarding self-employed relationships. Since 2025, the Tax and Customs Administration has been enforcing regulations against bogus self-employment more actively. A genuine self-employed relationship requires entrepreneurship, not a hierarchical relationship, and not working exclusively for a single client.

The enforcement of self-employed professionals in 2025

As of January 1, 2025, the enforcement moratorium on the DBA (Deregulation of Employment Relationships Assessment Act) has been lifted. The Tax and Customs Administration now actively checks for bogus self-employment. Risks for clients:

• Retroactive assessment of payroll tax and employee insurance contributions (up to 5 years back).
• Penalty for bad faith.
• Reputational damage resulting from assessment as a “sham self-employed person”.

What does the Tax and Customs Administration conduct assessments? Among other things:

• Authority relationship (gives instructions to the client, checks the work?).
• Obligation to perform personal work (may a self-employed person send a substitute?).
• Free enterprise (own risk, entrepreneurial risk, multiple clients).

For contracts for self-employed professionals: discuss with a lawyer in advance whether the relationship holds up under current assessment.

Transition payment since WAB

Since 2020 (WAB): every employee is entitled to a transition payment upon dismissal at the employer's initiative — from day 1 (previously only after 2 years). Formula: one-third of a monthly salary per year of service, with a maximum (€94,000 in 2024 or an annual salary at a higher income).

Practical advice: pay a transition payment to everyone you dismiss (or refuse to extend). Plan this into your personnel costs.

Predictability of employment conditions

Since 2022: employers must offer more predictability regarding working hours, location, and duration. Expansion of Article 7:655 of the Dutch Civil Code (duty to inform). Specifically:

• The employee must know on which days/times he can be called upon.
• For on-call contracts: four days' notice period.
• After 6 months, the right to request more predictable employment conditions from the employer.

What should you do now as an employer?

1. Check current contracts: do they comply with recent information obligations?
2. Assess self-employed relationships: are they sustainable under new enforcement?
3. Pension transition plan: schemes adapted to WTP requirements before 2028.
4. Update on employment conditions: predictability, transition payment procedures.
5. Train HR and management: new rules regarding contracts and dismissal.

Honest recommendation

Employment law evolves every few years — often to the detriment of employers, in favor of employee protection. Schedule an annual review of your employment contracts and HR policy. For self-employed clients, a specialized contract with a specialized lawyer is no longer optional as of 2025.

For the basis: employment contract.

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