Transparent and predictable employment conditions (II)

Published by: Marieke Hartkoorn posted on 28 April 2022 reading time

Employers, beware! On Tuesday 19 April 2022, the Act Implementing the EU Directive on Transparent and Predictable Terms of Employment was adopted by the Lower House. In a previous blog, I briefly discussed this new legislation. However, despite its name, the Act on transparent and predictable terms of employment (hereinafter: "the Act") is not clear on all points, so I will discuss the main points in more detail in this blog. This way, it will be clear to you which changes are coming your way and how you can deal with them.

 

1. Information obligation

Already now the employer must inform an employee in writing about certain employment conditions. Examples are the duration of the employment contract, the place where the work is carried out, an employee's income and the number of days of holiday. The new law obliges the employer to provide even more information. Among other things, the employer must also inform the employee about all holiday and leave entitlements, the way in which the employment contract can be terminated and what that procedure looks like, the salary and all other salary components as well as the time of payment and the customary working and rest times.

The employer must provide this information in writing. This can be in the employment contract, but also in the collective agreement or a personnel handbook. It is therefore advisable to check the model employment contracts and personnel handbooks and to adjust them.

Employees who already have an employment contract do not need to be actively informed after the Act comes into force. However, the employer must provide the additional information to an employee within one month after his request.

 

2. Study costs

All study costs for compulsory training are to be borne by the employer. This includes, among other things, the lesson and examination fees, travel expenses and teaching materials. In addition, the training must (if possible) be followed during normal working hours. Compulsory training means training that, on the grounds of the law or the CAO, must be followed by an employee in order to perform his duties. The term should be interpreted broadly.

A training costs clause which includes a repayment obligation or a settlement clause for compulsory training is null and void. This also applies to those clauses which were created before the new law came into force. As an employer, you must be alert to and possibly amend individual agreements or general study costs regulations in the personnel manual.

 

3. Work pattern

Employees with flexible contracts are given more protection and security. For example, employees with an on-call contract in which the working time is largely unpredictable are only obliged to appear on reference days stated in advance. Based on an amendment to the Flexible Work Act, employees can - in addition to adjustment of working hours, place of work and working time - also request the employer to provide a form of work with more predictable and secure employment conditions. In practice, this means more and more fixed hours.

An employer who receives a written request from an employee must respond within one month. If the response is not timely, the employer must comply with the employee's request.

 

4. Ancillary activities clause

The law aims to ensure that employees can have other jobs or their own business in addition to their job. To this end, the ancillary work clause is restricted. A general prohibition on ancillary activities is no longer allowed. An employer must have an objective justification to invoke the secondary employment clause. This objective justification may lie, for example, in avoiding conflicts of interest and preventing violations of statutory regulations, such as the Working Hours Act.

Although it seems that the justification only has to be given when the employer invokes the clause, the employer would be well advised to give reasons for the clause in the employment contract. This prevents ambiguity and minimises the risk of the clause becoming null and void.

 

Finally

The Act on Transparent and Predictable Employment Conditions will apply from 1 August 2022 and will have immediate effect. This means that agreements made with employees now or in the future may no longer be valid or may even be invalid under the new Act.

If you need help with checking and/or adjusting model employment contracts or personnel handbooks, or if you would like more information, please feel free to contact one of our employment lawyers without obligation.

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