Netherlands
Reassignment obligation of the employer in redundancy cases (case law)
Impact date: 8 June 2026 In this case, the reassignment of the employee in another suitable position following a redundancy was the central issue. The Court of Appeal ruled that, despite a few missed opportunities, the employer had made a genuine effort to reassign the employee through a series of lengthy, personalized discussions. The employee turned down the alternative positions offered on the grounds of salary and the need to relocate abroad, which goes beyond the legal requirement for a ‘suitable’ role based on Dutch law. The Court of Appeal ruled that the employer's obligation to reassign an employee in another suitable position had been fulfilled and that the employment contract was therefore terminated in line with Dutch law.
Employer implications/action needed The court assessed the employer's reassignment efforts as a whole and concluded that the employer had fulfilled its duty of care in this respect. While some shortcomings were identified, including insufficient attention to a colleague’s vacancy and a lack of clarity regarding certain positions, these were outweighed by the employer’s long-term, active and personalized efforts to find a suitable role. The court specifically attached weight to the numerous and lengthy discussions held with the employee regarding reassignment options, which demonstrated a genuine and sustained effort to find alternative employment for the employee. Significant weight was also given to the fact that the employee imposed conditions that exceeded the legal standard of a suitable position under Dutch law. The overall reassignment process was therefore considered sufficient.
Employer risk If an employer does not meet its reassignment obligations in case of a redundancy, the employer risks not being granted a dismissal permit by the UWV, meaning that it is in principle not possible to terminate the employment contract of the impacted employee. This means that although the employee's position will become redundant, the employee will remain employed and entitled to their salary and other benefits.
Employer's liability arising from working conditions (case law)
Impact date: 12 June 2026 In a recent Dutch court case, an employee reported "mouse arm"/RSI complaints. The Court of Appeal found it sufficiently established that the employee's health problems had developed during the course of their work and that the employer had failed to meet its duty of care to provide a safe and healthy working environment. The court concluded that the employer had not taken all measures that could reasonably have been expected to prevent the employee's work-related overuse injuries.
Employer implications/action needed Employers should review ergonomic and workplace health-and-safety measures, particularly for employees who perform intensive computer-based work. Maintaining records of risk assessments, workstation adjustments and preventive measures will be important if an employee later alleges that workplace conditions caused or contributed to a health condition.
Employer risk The decision confirms that employers can be liable for RSI and similar overuse injuries where workplace conditions are found to have caused or contributed to the employee's symptoms and the employer cannot demonstrate that it took all reasonably necessary preventive measures.
Link ECLI:NL:HR:2026:910
Increase of statutory minimum wage
Impact date: 1 July 2026 The minimum wage for employees aged 21 and over will be increased from €14.71 gross to €14.99 gross per hour, excluding the 8% statutory holiday allowance.
Employer implications/action needed Employers should ensure that their employees receive at least the statutory minimum wage and check whether salary levels required for certain exceptions (e.g. including holiday allowance in salary if salary equals 3x minimum wage) are still being met.
Employer risk Failing to pay the statutory minimum wage may result in wage claims from employees (including the statutory increase of 50%) and fines from the Labor Authority between €500 and €10,000 per employee. Additionally, this may have a negative effect on an employer’s reputation.
Act on Assessment of Employment Relationships and Legal Presumption (Clarification) Act
Impact date: 31 December 2026 (expected)
On 7 July 2025 the legislative proposal the Act on Assessment of Employment Relationships and Legal Presumption (Clarification) Act (VBAR) was submitted to the House of Representatives. On 21 April 2026, the House of Representatives adopted the VBAR. On 16 June 2026, the Dutch Senate adopted the VBAR which estimated entry into force date is 31 December 2026. The VBAR aims to clarify the distinction between employees and independent contractors, limit false self-employment, and legally anchor relevant case law. The VBAR proposal includes among other things:
- clearer criteria to distinguish between employees and independent contractors
- a legal presumption of employment in certain cases
- integration of relevant court rulings into statutory law
- introduction of a civil law presumption of an employment contract for workers who are currently self-employed with an hourly rate below €38
In response to significant criticism received on the draft legislation, and in an effort to prevent further delays, a decision was taken on 10 March 2026 to remove a portion of the proposed legislation relating to the substantive criteria for determining classification of employment. The only remaining element of this draft legislation is the introduction of a legal presumption of employment based on an hourly rate threshold. Where an individual's hourly rate falls below €38 per hour, a presumption of an employment relationship will apply when assessing the worker's status.
The more detailed elaboration of the substantive criteria for distinguishing between employees and independent contractors is addressed in the Self-Employed Persons Act.
Recent case law development:
On 27 January 2026, the Court of Appeal Amsterdam ruled that the drivers of Uber did not qualify as employees. The Court of Appeal held that the relevant drivers operated with a degree of entrepreneurship, which in the overall assessment outweighed the elements pointing towards an employment relationship.
The court attached particular importance to factors such as the level of investments made by the drivers, including vehicle acquisition and financing, the freedom to determine working hours, the possibility to use multiple platforms simultaneously, the strategic decision-making in accepting or rejecting rides, the variability of income, and the exposure to commercial risks such as liability and incapacity for work. The court confirmed that no single factor is decisive and that all circumstances must be assessed in their mutual context.
Importantly, the court emphasized that qualification remains highly fact-specific. It did not exclude that individual drivers, depending on their concrete circumstances, could still qualify as employees. A general or collective qualification is not possible where individual circumstances differ materially. This judgment reinforces that the distinction between employee and independent contractor continues to require a case-by-case analysis, even in platform-based working relationships.
Employer implications/action needed Employers should be aware of the risk(s) of misclassification when entering into new relationships with independent contractors.
Employer risk Where an independent contractor is deemed to be an employee, the employer risks the Dutch Tax Authority retrospectively imposing tax obligations and fines. Additionally, claims can be submitted to claim “employee rights” for up to the five previous years.
Flexible Workers (Increased Security) Act
Impact date: 31 December 2026 (with regards to equal employment conditions for agency workers) and 1 January 2028 (the remainder of the Act) The Flexible Workers (Increased Security) Act was adopted by the House of Representatives on 12 May 2026 and by the Dutch Senate on 7 July 2026 and will enter into force on 1 January 2028. Once in force, this Act will largely replace on-call contracts with “bandwidth contracts”, which are a new type of employment contract for a fixed or indefinite term, stating a minimum number of hours with a maximum of 130% of the minimum agreed working hours, for which employees will be scheduled and paid. There will be no obligation for employees to work outside the agreed working hours. An on-call employment contract will only be permitted for students, and for temporary agency workers only during the first 52 weeks.
The Act will also increase the break between consecutive employment contracts that resets the maximum chain of fixed term employment contracts from six months to three years. This means that the last employment contract in the chain of contracts will be deemed an indefinite term contract if the aggregate duration is longer than three years, with breaks between contracts of three years or less included, or more than three fixed-term employment agreements have been entered into with breaks of no more than three years between them.
In addition, the proposal introduces important changes with regard to the employment conditions of temporary agency workers. The current starting point remains that agency workers are entitled to the same employment conditions, including salary and allowances, as employees in equal or equivalent positions employed directly by the hirer. Under the current framework, deviation by collective labour agreement is possible and has resulted in the so-called “hirer’s remuneration” system applying in practice.
Under the new legislation, deviation by collective labour agreement will remain possible, but only if this is laid down in the collective labour agreement of the temporary employees and provided that the total package of essential employment conditions is at least equivalent to that of comparable employees at the hirer. Essential employment conditions, including salary and other financial components, must therefore be equal or at least equivalent in overall value. A shortfall in essential employment conditions cannot be compensated by more favorable non-essential conditions. This part of the Act will already enter into force on 31 December 2026.
Furthermore, with respect to non-essential employment conditions, agency workers will be entitled to at least equivalent conditions as employees in equal or equivalent roles employed by the hirer. The precise interpretation of what qualifies as “equivalent” will require further clarification in practice and may give rise to interpretative discussions. This part of the Act will also enter into force on 31 December 2026.
Employer implications/action needed Employers will need to replace all on-call employment contracts with bandwidth contracts (other than for students and seasonal workers) and employers are advised to keep records of fixed term employment contracts for at least three years after the end of employment, to keep track of whether an employee can return on a fixed term basis or only on the basis of an indefinite term employment contract.
Employer risk Employers will risk (wage) claims if the wrong employment contract is used. If employers do not take into account breaks between employment contracts of three years or less, they risk a fixed term employment contract converting to an indefinite term contract.
Pay Transparency Directive
Impact date: 1 January 2027 (expected at this time) The Dutch Government is working on new legislation to transpose the EU Pay Transparency Directive. The draft version of the legislation was sent to the Council of State, which issued its advice on the draft legislation on 1 April 2026. The legislative proposal was subsequently submitted to the House of Representatives on 21 May 2026. In addition, a draft implementing decree (Besluit implementatie richtlijn loontransparantie) has been published and is open for consultation. This decree further elaborates on the reporting obligation under the legislative proposal by defining key concepts such as base salary, additional or variable components and gross salary, establishing a formula for calculating the gender pay gap, and setting out the dates on which employers must first report. In summary, the draft legislation introduces the following obligations for employers:
- employers should have pay/wage structures in place which are based on objective and gender-neutral criteria
- job applicants have the right to request and receive information from their (potential) future employer about the starting wage or its range. Employers are prohibited from asking applicants about their previous salary
- employers should provide their employees with easy access to the criteria used to determine remuneration. Employers with 50 or more employees must also provide easy access to the criteria used for wage development
- employees have the right to receive written information about their wage level and average wage level by gender for equal work. Employers will have to inform employees annually about this right and the steps the employees should take to exercise this right
- employers with 250+ employees should report annually on the wage gap. Employers with 100 to 249 employees should report every three years. Employers with less than 100 employees are not required to report
- if the wage report reveals an unjustified difference of at least 5% in the average wage of female and male employees performing equal (or equivalent) work, and this difference is not rectified within six months of submitting the report, employers are required to conduct a wage evaluation together with employee representatives
- employers should determine what is meant by work of equal value based on objective and gender-neutral criteria: skills, efforts, responsibilities and working conditions of employees
The consultation on the implementing decree is running until 31 July 2026. Under the draft decree, employers with 150 or more employees must first report by 7 June 2028 (over calendar year 2027). Employers with 100 to 149 employees must first report by 7 June 2031 (over calendar year 2030).
The Dutch Government has informally confirmed that the implementation of the EU Pay Transparency Directive will be delayed and is not expected before 1 January 2027. The government currently aims to submit the legislative proposal to the Parliament by the end of 2026, with the aim of this legislation entering into force on 1 January 2027.
Employer implications/action needed If this proposed legislation is adopted, employers should ensure that they have an up to date job evaluation and classification system in place which is based on objective and gender-neutral criteria, equal pay for equal work or work of equal value is promoted and, where necessary, justified. Employers should also report on the average pay differences within their organization as well as differences between different categories of employees performing equal work or work of equal value (provided that they meet the applicable thresholds).
Employer risk The specific penalties will be detailed in forthcoming subordinate regulations. In case of non-compliance with this new legislation, it is expected that employers risk individual court proceedings or proceedings at the Netherlands Institute for Human Rights. Additionally, the Labor Authority may impose penalties.
Links
Implementatie richtlijn loontransparantie | Overheid.nl | Wetgevingskalender
https://open.overheid.nl/documenten/b39db3c6-2a0e-4683-be24-91ce0b8ef710/file
https://www.raadvanstate.nl/adviezen/@156101/w12-26-00016-iii/
https://www.internetconsultatie.nl/besluitimplementatierichtlijnloontransparantie/b1
Temporary agency workers
Impact date: 1 January 2027. The Dutch Labor Supply Authority (Nederlandse Autoriteit Uitleenmarkt) will begin assessing admission applications from 1 July 2027. Compliance will be enforced by the Labour Inspectorate from 1 January 2028. On 15 April 2025, the House of Representatives adopted the Provision of Personnel Admission Act (Wet toelating terbeschikkingstelling van arbeidskrachten, "Wtta"). The Wtta aims to improve the position of temporary agency workers and is designed to combat abuses within the temporary employment agency sector, addressing issues such as underpayment of wages, excessive working hours, illegal employment, non-payment of taxes, and labor exploitation and to create a level playing field for temporary agency companies that make temporary agency workers available to other companies.
The Senate adopted the Wtta on 11 November 2025, marking the completion of the legislative process. On 24 June 2026, the Dutch government formally confirmed entry into force by royal decree, setting phased commencement dates.
The Wtta introduces a mandatory admission system for any company that makes workers available to a third party in the Netherlands, i.e. making workers available to perform work under that party’s supervision and direction, against remuneration. This applies regardless of whether the supply of workers is commercial or incidental, is not limited to temporary employment agencies, and extends to foreign companies supplying workers in the Netherlands. Under the new regime, companies must apply for admission. Once admitted, the company is permitted to provide workers for a period of four years.
To obtain admission, temporary agency companies must satisfy several key requirements:
- registration in the Dutch Trade Register
- submission of a Certificate of Conduct ("VOG") for legal entities, with a new VOG required upon any change in directors or other key personnel
- payment of a financial security deposit of €100,000 to a designated administrator (starting temporary agency companies pay €50,000)
- proof of compliance with a set of quality standards to be established under secondary legislation (i.e. correct payment of wages and taxes)
The Wtta does not apply to intra-group secondment (i.e. the lending of workers between companies within the same corporate group), collegial lending of staff without profit motive, contract work (aanneming van werk) or self-employed work. In addition, the Wtta provides for an exemption (ontheffing) for companies where making workers available represents less than 10% of total annual revenue (max. €5,000,000) and the company has been paying wages for at least 12 months. If these requirements are met, the company must actively apply for the exemption as it is not granted automatically. The exemption is granted for an indefinite period, but the company must annually (before 1 November) submit its revenue data for the preceding calendar year together with an assessment statement, on the basis of which the authority may withdraw the exemption. It is important to note that the exemption only exempts from the admission obligation; the equal pay rules under the Placement of Personnel by Intermediaries Act (Waadi) remain fully applicable.
Employer implications/action needed Companies should assess their service model to determine whether the Wtta admission obligation is triggered and, if so, apply for the admission or the exemption within the applicable timeframes.
Employer risk Companies that do not comply with the Wtta may be exposed to fines of up to €90,000 per violation. The Labour Authority can also impose penalty payments, order a preventive shutdown in case of repeat offences, and suspend or withdraw the admission. Companies hiring workers from a non-admitted supplier also risk fines.
Compensation severance payment
Impact date: 1 January 2027 Currently, in the event of an employment contract being terminated due to long-term illness, all Dutch employers can request from the UWV (the Dutch Governmental body) a compensation payment equal to the statutory severance payment calculated until the day after the day on which the employee had been ill for 104 weeks.
Previously, draft legislation had been published that limited this compensation to small employers only. An amendment to this draft legislation has been published on 29 May 2026 that results in no employer (also not small employers) being eligible for compensation of the statutory severance payment from the UWV anymore. The legislative proposal has been submitted to the House of Representatives on 10 December 2025. Once this legislation has been adopted by the House of Representatives and the Senate, no employers will be eligible for this compensation.
Employer implications/action needed Once in force, employers will no longer be entitled to request compensation from the UWV where an employment contract is terminated due to long-term illness.
Non-competition clauses
Impact date: Awaited Draft legislation has been published which will significantly change the rules for using non-competition (and business relations) restrictions.
In summary, the changes include:
- non-competition restrictions shall be limited in duration to maximum one year after termination of employment
- non-competition clauses should include a geographical scope
- all employment contracts including a non-competition clause must state the justification to impose the restriction
- employers shall invoke the non-competition clause at least one month before termination of the employment contract if they intend to enforce the clause
- employers shall pay compensation equal to 50% of the most recently earned monthly salary for each month that the employee will be bound by the clause unless a higher compensation has been agreed
Employer implications/action needed Employers should continue to monitor the progress of the proposal. If it is adopted, employers will need to ensure that non-competition (and business relations) clauses concluded with employees are compliant with the new requirements.
Employer risk Once in force, in the event that non-competition (and business relations) clauses do not meet the new requirements, such restrictive covenants will be deemed invalid and will not be able to be invoked.
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