NETHERLANDS Trends and Developments Contributed by: Tijmen Noordoven, Maarten Minnaard, Claire Huijts and Annemeijne Zwager, Rutgers & Posch
Rutgers & Posch Keizersgracht 617 1017 DS Amsterdam PO Box 10896 1001 EW
Amsterdam Netherlands
Tel: +31 208 913 900 Fax: +31 208 913 901 Email: Tijmen.noordoven@rutgersposch.com Web: www.rutgersposch.com
Introduction Dutch employment law is always changing. This chap - ter of the guide highlights the main trends and devel - opments for the coming period that business leaders should know about. A key topic is pay transparency. New European rules will soon require Dutch employers to be more open about how pay is set and to report on pay differences between men and women. This means companies will need to review their pay structures and be ready for more questions from employees. Another major change is the reform of the Dutch pen - sion system. The new law shifts from guaranteed pen - sions to a system where each employee builds up their own pension capital. This transition is complex and requires careful planning from employers. Since the deadline for the transition is 1 January 2028, time is running out and employers need to take action as soon as possible. The position of self-employed workers has been under discussion for decades, but in the near future it seems likely there will be legislation on this topic. The govern - ment is working on new laws to clarify when some - one is truly self-employed or should be treated as an employee. This is important for companies that work with freelancers or contractors. These changes are explained below in clear terms, offering practical advice for businesses.
Pay Transparency On 7 June 2023, the European Pay Transparency Directive (2023/970; the “Directive”) came into effect. Member states have been given three years to imple - ment the Directive into national law. The Directive introduces four obligations on (large) employers. Obligations for employers Employers are required to implement an objective, gender-neutral pay structure. This pay structure must ensure equal pay for equal work or work of equal value. The pay structure must encompass all criteria relevant to the position in question, including, at a minimum, skills, effort, responsibilities and working conditions. It is important that relevant soft skills are Furthermore, the Directive introduces information rights for both job applicants and employees. Appli - cants must be informed, prior to salary negotiations, of the initial pay or the pay range associated with the position for which they are applying. Employers are prohibited from inquiring about an applicant’s salary history. Employees must be granted access to the criteria used for determining pay and pay levels, and employees working for employers with more than 50 employees must also be given access to the crite - ria for pay progression. Additionally, employees have the right to request information from their employer regarding their own pay level in comparison to the average pay level within their job category, broken down by gender. Employers are required to actively not undervalued in this assessment. Information rights for employees
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