Work and Security Act: your rights in the event of dismissal

The Work and Social Security Act is in the employment law originated in April 2013 when the government and the social partners expressed a desire to adjust the labour market. The changes were badly needed at the time: in fact, two camps had emerged in the labour market. On the one hand, you had a large group of workers on permanent contracts, and on the other, you had a large group of workers on flex contracts. With little security, in other words. 

The objectives of the Work and Social Security Act were:

1. Improving people's flow in the labour market
2. Improving the position of flex workers compared to those on permanent contracts
3. Simplifying dismissal procedures, which were previously very cumbersome
4. An increase in legal certainty, both for employees and also employers

Although much changed from the previous situation, a review from 2020 that the law has achieved many of these objectives. For instance, the WWZ has increased the flow of flex workers towards permanent contracts with more work. This ensures that more people in the Netherlands have income security.

One of the main changes and pillars of the Work and Security Act was that the rules around flexible employment changed. For instance, there was a restriction on the agency clause, giving temporary workers more rights and protection. There was a shorter chain clause, requiring employers to convert flexible contracts to permanent contracts after a shorter period than before. Finally, there was a restriction on the exclusion of continued payment of wages. In practice, this means that flex workers are more entitled to continued payment of salary when ill. 

Dismissal law underwent a major restructuring. Previously, dismissal always went through the cantonal court or the UWV, but after the Work and Security Act, there was a clear separation as to who you should turn to when a conflict arises over dismissal. 

Is there any commercial dismissal or dismissal by long-term disability or illness? Then the dismissal is through the UWV. 

Is there dismissal for other reasons, such as, for example non-performance? Then the dismissal always goes through the subdistrict court. 

In addition, the Work and Social Security Act aimed at introducing the transition allowance. This gave both flex workers and workers with permanent contracts compensation in case of dismissal. 

The unemployment benefit was adjusted after the Work and Security Act to activate unemployed people to get back to work faster. Unfortunately, the evaluation showed that the adjustments in this law made little sense.

After five years of experience with the Employment and Security Act, research shows that the law has been largely successful in achieving its objectives. The labour market has indeed become more dynamic, flex workers have been given a better position, and legal certainty has increased for all concerned. The law has contributed to a fairer distribution of rights and obligations between different types of workers.

At the same time, evaluations show that not all aspects of the law have been equally successful. In particular, unemployment benefit reforms have not had the desired effects and have resulted in increased administrative burdens without clear labour market benefits.

The Work and Security Act fundamentally changed the Dutch labour market and formed the basis for further reforms such as the Balanced Labour Market Act. For employees, this means that they need to be better informed about their rights and opportunities in a labour market that is increasingly complex, but also offers more opportunities for different forms of work and career development.