Q4 Update (October - December 2024)

Legislation

EU Platform Work Directive adopted

The EU Platform Work Directive has been ratified by the European Council and published on 11 November 2024. See Q1 update below for more information on the directive. Member states have two years to transpose the provisions of the directive into their national legislation.

EU Regulation on Forced Labour Products adopted

On 19 November 2024, the European Council approved and adopted the regulation on the prohibition of products made with forced labour on the EU market (the European Parliament had already given its consent earlier). This means that products made with forced labour can no longer be sold, offered, or exported from the EU. The regulation applies to all products, regardless of whether they are made within or outside the EU. More information can be found in our Q1 2024 update below.

The regulation was published on 12 December 2024. Most of the provisions will only start to apply after a period of 36 months. This transition period gives member states and market participants time to comply with the regulation.

Critical opinions of the Council of State (Raad van State) 

On 11 November 2024, the Council of State published its opinions on the Bill for More Security for Flexible Workers and the Bill for Clarification of the Assessment of Employment Relationships and Presumption of Employment (WVBAR). The Council believes that both legislative proposals do not address the underlying, broader issues in the labor market. Special attention is needed for differences in the level of protection between categories of workers and for the structural staff shortages. However, there is no fundamental reform in the field of the labor market. The Council points out the lack of adjustments to permanent contracts and the absence of coherent reforms in related areas (labor law, social security, taxation).

The Minister of Social Affairs and Employment intends to send both bills to the House of Representatives in Q1 2025. However, the annual planning states that this is subject to change. It is not clear what this exactly means for the timelines of these bills, of course we will keep you updated. 

Case law

We have made a selection of the most significant recent employment law cases for employers, from the following courts: 

• The Supreme Court (Hoge Raad)
• The Central Appeals Tribunal (Centrale Raad van Beroep)
• The Court of Justice of the European Union (CJEU)

Supreme Court: duty to complain applies to wage claims

This case concerns whether the duty to complain also applies to wage claims (Article 6:89 of the Dutch Civil Code). The Supreme Court rules that Article 6:89 of the Dutch Civil Code generally applies to all obligations, including those arising from an employment contract and those involving the payment of a sum of money. However, the nature and content of the legal relationship and the nature and content of the performance are relevant circumstances when assessing whether the creditor has fulfilled its duty to complain. Given the purpose of Article 6:89 of the Dutch Civil Code, as well as the wording of the provision—which refers to 'a defect in the performance'—Article 6:89 of the Dutch Civil Code only applies to cases of defective performance and not to cases where no performance has been rendered at all. The failure to fully pay wages or an overtime allowance is not, by its nature, a complete failure to perform. Whether there has been partial performance or no performance at all in a specific case depends on the circumstances of that case.

Practice note: if you are confronted with a wage claim, verify if there was a complete failure to pay and if not, if the duty to complain has been fullfilled. 

Reference: Supreme Court 20 September 2024, ECLI:NL:HR:2024:1278/1282

Supreme Court: employer unilaterally changed the division of the pension premiums to the detriment of the employees in 2014 - have employees who did not litigate against the employer forfeited their rights?

This case concerns whether employees are entitled to a refund of the monthly deducted pension premiums. At the end of December 2013, the employer informed its employees that, as of 1 January 2014, they would have to pay their own contribution towards their pension, which would be deducted from their gross salary. This contribution amounted to 10% in 2014, 20% in 2015, and 30% from 2016 onwards. The announced change caused significant unrest in the workplace, and five employees initiated legal proceedings against the change in 2014. The Court of Appeals in Den Bosch ruled on 20 February 2018, that the employer did not have compelling interests for the change as per Article 7:613 of the Dutch Civil Code, and that the employer must refund the deducted pension premiums to the (litigating) employees and refrain from deducting these contributions in the future.

Following this ruling, a large number of other staff members, including employees, approached the employer with the request to also refund the deducted pension premium contributions and to cease future deductions, as they were in the same situation as the litigating employees. The employer refused, leading various staff members to initiate legal proceedings. According to the Court of Appeal, the employees had forfeited their right to the old premium contribution distribution.

Practice note: if some employees take action against a collective measure, this does not automatically give thes other employees the same rights. 

Reference: Supreme Court 18 October 2024, ECLI:NL:HR:2024:1488

Other

SER Diversity Portal: The Reporting Toolbox

The toolbox includes a step-by-step plan for companies required to report on diversity, an overview of good practices and practical examples, and video tutorials explaining the reporting process in the SER diversity portal.

Dutch Tax Authority

The Dutch Tax Authority published a new edition of its Payroll Tax Handbook 2024 and its Payroll Tax 2025 Newsletter. This newsletter includes details on, among other things:

• Abolition of the low income benefit (LIV)
• Changes in the wage cost benefits (LKV)
• Changes in the expat scheme (formerly know as 30% Ruling)
• End of the enforcement moratorium on false self employment and the end of the model contracts

Dutch Whistleblowers Authority

Employers will inevitably face reports of suspected misconduct or integrity violations. Such reports can prompt employers to conduct internal investigations. Based on these investigations, various (employment law) measures can be taken. The Dutch Whistleblowers Authority has published a brochure on what is needed to organize an internal investigation and how employers can prepare for it. This includes the assessment of the report, the internal investigation itself, and its conclusion. The brochure addresses both integrity violations and misconduct that involve a societal interest (i.e. reports to which the Whistleblowers Protection Act applies).

The brochure serves as a valuable guide for companies with useful tips and tricks.

SER sets guideline amounts for Works Council training 2025

The SER (Social and Economic Council) has established the guideline amounts for works council training courses for 2025. The guideline amount for a customized course for the entire works council is set at EUR 1,275 excluding VAT per half-day per works council (2024: EUR 1,250). The guideline amount for an open enrollment course is 225 euros per half-day per works council member (2024: EUR 200).

Q3 Update (July - September 2024)

Legislation

Schoof cabinet’s government program

On 13 September 2024, the Schoof cabinet unveiled its government program, outlining the plans for the upcoming cabinet period. For the employment law practice, the program largely continues the initiatives of the previous cabinet. Below is an overview of the most relevant plans:

• Increasing job security and reducing excessive reliance on flexible contracts. The government aims to introduce a legislative proposal aimed at increasing job security for flexible workers. This proposal includes measures to better protect temporary workers, on-call workers and agency workers.
• Clarifying employment status and protecting self-employed workers. The government will introduce a legislative proposal to clarify when someone is working as an employee or as a self-employed person. To better protect self-employed individuals against income loss due to long-term disability and to create a more level playing field among workers, a mandatory disability insurance for self-employed individuals will be introduced. Additionally, the Dutch tax authorities will resume enforcement on the classification of employment relationships for payroll taxes to combat false self-employment (see also below).
• Under certain conditions, small and medium-sized employers will soon be able to focus entirely on finding a new job for an employee outside their organisation after one year of the employee's illness, instead of focussing on the rehabilitation within the organisation.
• The government is working on a scheme that allows employers to retain their employees during a crisis that falls outside the regular business risks. Employers can temporarily reassign employees or reduce their working hours. In the latter case, they can apply for a wage subsidy.
• The government plans to improve and simplify the Work and Income Act (WIA) with proposals inspired by the recommendations of the OCTAS (Independent Commission on the Future of the Disability Insurance System).
• The government is working on proposals to simplify the Benefits Act (Toeslagenwet) and the Unemployment Insurance Act (WW). A budget cut needs to be implemented for the Unemployment Insurance Act.
• The government aims to strengthen the position of labor migrants in the labor market and their participation in society. Rogue employment agencies will be restricted, including through a licensing system for employment agencies and the expansion of the Dutch Labor Inspectorate. The government will soon start a technical exploration of the possibility of prohibiting the hiring of labor on a sectoral level or imposing a requirement to employ a minimum percentage of workers directly.
• The government will investigate different options to tighten the requirements for the highly skilled migrant scheme. This could include adjusting salary criteria or the conditions under which companies are recognized as sponsors. The goal is to attract highly skilled migrants more selectively.
• The government aims to develop a strategy to address labor market shortages in close collaboration with society. It focuses on five key areas: choosing quality work, strengthening the economy, increasing productivity, enhancing sustainable labor market participation and improving the match between job seekers and employers. The government wants to engage in discussions with sectors, social partners, and other stakeholders on these topics and is organizing, among other things, a summit on labor market shortages.
• Amendment to limit the compensation for the transition allowance in case of long-term disability, to small employers only (25 employees). If this is actually introduced, there are relevant financial consequences for employers who employ more than 25 employees.
• Legislation for combining short-term and long-term care leave into 'caregiver leave'.
• Improving position employees in a transfer of undertaking during bankruptcy.

Budget Day 2024 (Prinsjesdag)

The Dutch government presented the National Budget (Miljoenennota) and the Tax Plan 2025 (Belastingplan) on 17 September 2024. Below is an overview of the most relevant (proposed) changes:

30%-Ruling

The previously proposed reduction of the 30%-ruling (30-20-10 ruling) is largely being reversed. In the proposed Tax Plan 2025, a maximum tax-free allowance of 27% is suggested starting from 1 January 2027. For the years 2025 and 2026, a percentage of 30% will apply to all incoming employees. Additionally, the salary threshold will be increased from EUR 46,107 (2024) to EUR 50,436 (2027) and the salary threshold for incoming employees under 30 years old with a master's degree will be increased from EUR 35,048 (2024) to EUR 38,338 (2027). For incoming employees who applied the 30%-ruling before 2024, transitional law applies. For them, a percentage of 30% and the old (indexed) salary thresholds will remain in effect until the end of the term.

Social security premiums for 2025

The preliminary social security premiums for 2025 are:

Premium	2024 (%)	2025 (%)
Old age state pension (AOW)	17.90	17.90
Survivor’s pension (Anw)	0.10	0.10
General unemployment insurance fund – low rate (Awf-low)	2.64	2.74
General unemployment insurance fund – high rate (Awf-high)	7.64	7.74
Government employee insurance scheme (Ufo)	0.68	0.68
Occupational disability insurance - low rate (Aof-low)	6.18	6.35
Occupational disability insurance - high rate (Aof-high)	7.54	7.58
Uniform childcare surcharge (Aof)	0.50	0.50
Return to work fund (Whk)	1.22	1.33

 

Income tax rates 2025

The government is introducing an additional tax bracket in the income tax system and lowering the rate in the first bracket as part of the proposed Tax Plan 2025. The first income tax bracket, which applies to incomes up to EUR 38,441 per year, will be reduced to 35.82%. Additionally, there will be a second bracket of 37.48% for incomes between EUR 38,441 and EUR 76,817 per year. As a result, both workers and retirees will have more net income in 2025.

Bill for the introduction of bereavement leave

This bill aims to establish a legal basis for paid bereavement leave. Employees in families with minor children, where a partner or minor child has passed away, will be entitled to take at least five working days of bereavement leave. To facilitate this, the Work and Care Act (WAZO) will be amended.

The bill is currently under consideration by the House of Representatives (submitted on 12 July 2024).

Internet consultations

In our continuous effort to keep you informed on legislative developments, we wish to highlight the current consultation phase for upcoming legislation. This phase is an important step in the legislative process, allowing stakeholders to review and comment on proposed bills.

The following draft bills were opened for consultation:

• Amendment of the decree implementing the pension act and the mandatory occupational pension scheme act in connection with the establishment of the transition periods for the pension transition (Wijziging van het Besluit uitvoering Pensioenwet en Wet verplichte beroepspensioenregeling in verband met de vaststelling van de transitietermijnen van de pensioentransitie). This amendment is open for consultation until 21 August 2024.
• Regulation for the extension and amendment of the SLIM-regulation (Regeling tot verlenging en wijziging van de SLIM-regeling). This amendment is open for consultation until 20 September 2024. The SLIM-regulation has been available since 2020 and will expire at the end of this year because the maximum term of 5 years has been reached. Therefore, the scheme needs to be extended through an amendment regulation.

Case law

We have made a selection of the most significant recent employment law cases for employers, from the following courts: 

• The Supreme Court (Hoge Raad)
• The Central Appeals Tribunal (Centrale Raad van Beroep)
• The Court of Justice of the European Union (CJEU)

CJEU: Seniority before the end of the implementation period of the Directive counts for salary calculation

How is someone’s salary established? Very often, years of service is an indicator for the salary of an employee. In this case, the length of service was accrued through fixed-term employment contracts and the question was if these years should be considered in the calculation of salary. The employee was successively employed under three fixed-term contracts:

• 2 November 1993 to 31 March 1995;
• 1 August 1995 to 1 August 2000, and
• 4 September 2000 to 30 November 2001.

From 1 October 2001, the employee was employed on a permanent basis. For the purpose of determining the employee’s salary, the employer did not acknowledge the service years under the fixed-term contracts before the expiry of the deadline for implementation of Directive 1999/70/EC (on fixed term-work), which was 10 July 2001. The employee argued that this was contrary to the principle of non-discrimination as laid down in Article 4 of the framework agreement on fixed-term work (annexed to Directive 1999/70/EC). The CJEU ruled in favour of the employee. Therefore, all service years must be considered when determining the salary.

Reference: Court of Justice of the European Union 19 September 2024, ECLI:EU:C:2024:773

Supreme Court: Temporal scope of the Xella standard

The Xella-standard means – in short –  that if an employee after 104 weeks of incapacity for work asks for a termination, the employer is obliged to terminate the contract and pay out the statutory transition payment. This case concerns the temporal scope of the Xella standard. According to the Supreme Court’s ESD-SIC ruling, as of 20 July 2018 employers were required to agree to a proposal from a long-term incapacitated employee to terminate the employment contract and pay the transition payment, provided that the proposal met the applicable conditions. In the present case, the Supreme Court ruled that such request should also be considered if the request was made before 20 July 2018 and the employer still needed to make a (further) decision on that date.

Reference: Supreme Court 27 September 2024, ECLI:NL:HR:2024:1309

Supreme Court: Overtime pay counts towards holiday pay

This case concerns whether compensation for overtime work should be included in the calculation of holiday pay. Article 7 paragraph 1 of Directive 2003/88/EC (Working Time Directive) is relevant in this respect. In particular, the question is whether the condition set by the CJEU in its Hein/Holzkamm judgment that the obligations arising from the employment contract require the employee to work overtime on a regular basis has been met. The Supreme Court ruled that the Hein/Holzkamm judgment should not be understood to mean that overtime compensation should only be included in the holiday pay if the employer can unilaterally impose overtime on the employee and could also enforce this. The consideration of the CJEU relates to overtime that is part of the work that the employee usually performs under his employment contract and for which the compensation forms a significant part of his salary. In order to place the employee during his annual leave in a situation that is comparable in terms of pay to the situation during periods worked, it is necessary to include such overtime in the calculation of the holiday pay.

References: Supreme Court 27 September 2024, ECLI:NL:HR:2024:1317/1319/1320

Supreme Court: Broad interpretation of the term 'wages' in article 8(1) (Old) Waadi and Article 5 of Directive 2008/104/EC (Temporary Agency Work Directive)

This case concerns whether a temporary agency worker, under Article 8(1) (old) of the Dutch Act on the Allocation of Workers by Intermediaries (Waadi), is entitled to remuneration components, including bonuses, that the hiring company grants to employees in an equivalent or similar position. The Supreme Court considers that, based on the Randstad Empleo judgment of the CJEU, the term 'remuneration' in the Temporary Agency Work Directive should be interpreted broadly. It includes all current or future benefits in cash or in kind, provided these are granted by the employer to the employee, even indirectly, due to their employment relationship. This applies regardless of whether the benefits are based on an employment contract, statutory provisions, or are granted voluntarily. The term 'wages' in Article 8(1) (old) Waadi should be interpreted in line with the term 'remuneration' in the Temporary Agency Work Directive. In the contested judgment, the Court of Appeal, referring to the legislative history, assumed that wages are 'nothing more than the consideration for the agreed work' and concluded that the performance-related bonus and certain other (variable) remuneration components are not part of this. However, this interpretation of the term 'wages' is not in line with the directive, given the CJEU's interpretation of 'remuneration'. The Supreme Court overturns the Court of Appeal's judgment.

Reference: Supreme Court 27 September 2024, ECLI:NL:HR:2024:1303

Supreme Court: Dynamic incorporation clause remains dynamic after transfer of undertaking (Asklepios doctrine)

A dynamic incorporation clause is often used to make sure that collective labour agreements apply to individual contracts also if they are amended. The phrase ‘as applicable from time to time’ is a well known way to include future versions of a collective labour agreement. The central question in this case is whether a dynamic incorporation clause, according to the standards of the CJEU in the Asklepios-judgment, is transferred to the acquirer upon transfer of undertaking and retains its dynamic character. The CJEU has ruled that a dynamic incorporation clause is transferred if national law provides for both consensual and unilateral amendment options for the acquirer. According to the Supreme Court, Articles 7:613 BW and 7:611 BW provide amendment criteria that meet this test. A dynamic incorporation clause is therefore transferred and remains dynamic after the transfer. Can an employee waive the rights derived from the dynamic incorporation clause towards the acquirer? This is only possible after and not because of the transfer, according to the Supreme Court.

Reference: Supreme Court 12 July 2024, ECLI:NL:HR:2024:1068

Supreme Court: 10-minute period between mandatory presence at work and start of shift can be considered paid working time

This is a case about a wage claim by a call centre employee. The parties are disputing whether the employee is required, under the employer's Planning Rules, to be present 10 minutes before the scheduled start of his shift to perform preparatory tasks, and if so, whether the employer must pay wages for those 10 minutes. The Court of Appeals answered both questions affirmatively. The employer challenged this decision. The Supreme Court rejected the cassation appeal. This means that the 10-minute periods prior to the start of the shift should be considered paid working time.

Supreme Court 13 September 2024, ECLI:NL:HR:2024:1161

Other

End of enforcement moratorium on false self-employment

In 2016, the Employment Relationships Deregulation Act (Wet DBA) was introduced. This law, intended to combat false self-employment, caused unrest and debate from the start. Therefore, the government decided to offer companies and self-employed workers a transition period by suspending enforcement. This led to an enforcement moratorium for the Tax Authorities. As a result, the Tax Authorities could not retroactively correct the classification of the employment relationship for payroll taxes, except in cases of malicious intent or failure to follow instructions adequately.

The previous government decided to lift the enforcement moratorium by 1 January 2025, at the latest. The current government has confirmed its intention to adhere to this plan (Parliamentary Papers II 2023/24, 31 311, no. 263). The main consequences for companies and self-employed workers are:

• From 1 January 2025, the Tax Authorities will apply the normal rules for imposing correction obligations, additional tax assessments, and fines when enforcing the classification of the employment relationship for payroll taxes. The enforcement will primarily focus on payroll taxes at the companies.
• The Tax Authorities will consider the previous enforcement moratorium and will only retroactively correct up to the date of its lifting, i.e., 1 January 2025.
• For the period before 1 January 2025, the Tax Authorities can only impose corrections, taking into account the five-year statute of limitations, if there is malicious intent or if a previously given instruction was not followed adequately. In such cases, corrections and additional tax assessments can be imposed up to the moment of malicious intent or when the instruction was given.
• The government wants to prevent well-intentioned companies from being immediately confronted with fines after the moratorium is lifted. Therefore, there will be leniency in imposing fines for companies who can demonstrably show that they are working on reducing false self-employment within their organization. In such cases, no fines for violations will be imposed for incorrect classification of the employment relationship during the first calendar year after the moratorium ends.
• The assessment of model agreements by the Tax Authorities will be discontinued. Existing approved model agreements will be honored until end date of the approval. Parties can continue to use them until that date. However, they only provide certainty if the company and the self-employed worker actually work as agreed in the model agreements.

In light of the impending end of the enforcement moratorium, companies and self-employed workers should critically review their employment relationships once again. In cases of risk, the employment relationship may need to be adjusted so that the work is performed as a genuine self-employed worker. If this is not possible, parties may choose to enter into an employment contract or terminate the employment relationship.

Q2 update (April – June 2024)

Legislation

Coalition Agreement 2024–2028 (Hope, Courage, and Pride)

On 16 May 2024, the political parties PVV, VVD, NSC, and BBB unveiled the coalition agreement for the period of 2024–2028. Below is an overview of the aspects most relevant from an employment law perspective.

Livelihood security and purchasing power

• Compensation for labor can be enhanced by alleviating the tax burden on workers and reducing marginal tax pressure. This could be achieved by introducing an additional tax bracket for income tax purposes.
• Security in the labour market will be promoted, for example for genuine self-employed persons within the self-employment policy framework and through regulation of the employment agency sector. In addition, there is a commitment to increase the number of permanent contracts for employees. The legislative processes for the of the Employment Relationships and Legal Presumption Clarification Act (VBAR) and the Labour Posting Admission Act (Wtta) will be continued.
• The review of the childcare system, which aims to make it nearly cost-free for working parents, will proceed.
• Efforts are being made to enhance social security, tax schemes, and allowances, so that working pays more. Legislation is being prepared for a reform of the benefits and tax system.
• The coalition agreement includes the intention to reform the Unemployment Insurance Act (WW). This reform may involve extending the notice period for employment contracts, coupled with the introduction of a WW eligibility assessment by the Employee Insurance Agency (UWV), and/or a reduction in the WW benefit duration to 18 months.
• From 1 July  2026, the compensation for transition fees in cases of a termination of employment due to long-term incapacity to work (following the two-year wage continuation obligation) will be restricted to small employers with fewer than 25 employees. Employers with 25 or more employees will no longer receive this compensation.
• The AWf premium (unemployment benefits premium) for both permanent and flexible employment contracts will be increased by 0.1 percentage points starting in 2026. This increase is expected to generate an additional 245 million euros.

Grip on asylum and migration

Measures to limit labour migration at low wages and under poor working conditions:

• The recommendations set forth by the Task Force for the Protection of Migrant Workers, referred to as the 'Roemer report', will be implemented.
• A stringent approach will be taken against mala fide temporary employment constructions. The temporary employment agency sector and recruitment agencies shall be regulated by an admission system (Wtta).
• Labour migrants from outside the EU, with the exception of those classified as highly skilled migrants, are required to obtain a work permit. The Dutch Labour Inspectorate (NLA) will intensify enforcement, also in relation to this group.
• Employers of migrant workers who are not Dutch residents become responsible for the inconvenience and costs associated with migrant workers lacking regular housing. They must establish agreements with the municipalities where their employees will reside for short-term and medium-term stays. Local and regional authorities are encouraged to provide greater flexibility for housing on the employer's premises.
• In the event of a long-term stay, employers will also be responsible for these employees to learn the Dutch language.
• It will be examined whether, and if so, which tax benefits under the extraterritorial cost facility (30% facility) will be reduced.
• The Netherlands is focusing on restricting the free movement of persons within the EU with regard to labor migration, in case the expansion of the EU is under consideration.
• The qualification requirements of the highly skilled migrant scheme will be tightened and increased.

Good governance and a strong rule of law

• The protection of whistleblowers will be enhanced.

Indexation of statutory minimum wage as of 1 July 2024

As of 1 July 2024, the statutory minimum wage is indexed by 3.09%. The minimum hourly wage for employees aged 21 and over is EUR 13.68 gross (as of 1 January 2024: EUR 13.27 gross).

Amendment of the Pensions Act related to the extension of the transition period to the new pension system

This bill extends the transition period to the new pension system under the Future Pensions Act (Wtp) from 1 January 2027 to 1 January 2028. Should an employer have placed the pension scheme with an insurance company or a premium pension institution (ppi), the revised offer and the transition plan must now be finalized by 1 October 2027 (instead of 1 October 2026), and submitted to the insurer or premium pension institution. All other intermediate milestones remain unchanged. This bill allows for a more evenly distributed workload over time, which is advantageous for the implementation of the pension transition.

The bill is pending before the House of Representatives (submitted on 19 June 2024).

EU: Corporate Sustainability Due Diligence Directive (CSDD) adopted

The Corporate Sustainability Due Diligence Directive has been adopted by the EU Council, as indicated in the press release. The directive's scope has undergone revisions from earlier drafts. The rules will apply to companies and parent companies within the EU with more than 1,000 employees with a global turnover exceeding 450 million euros, and to franchises with a global turnover of more than 80 million euros, provided at least 22.5 million euros is derived from royalties. The directive will also apply to non-EU companies, parent companies, and franchises that meet the same turnover thresholds within the EU.

The directive is set to become effective 20 days after its publication. Following this, Member States will have a two-year period to transpose the directive into their respective national laws. The application of the directive will be staggered based on company size, according to the following schedule:

• Three years after the entry into force of the directive for companies with more than 5,000 employees and a turnover of €1,500 million;
• Four years after its entry into force for companies with more than 3,000 employees and a turnover of €900 million;
• Five years after the entry into force of the directive for companies with more than 1,000 employees and a turnover of €450 million.

EU: Revision of the Combined Permit Directive adopted

On 12 April 2024, the Council adopted a revision of the Directive on the single application procedure for a permit allowing third-country nationals to reside and work within a Member State's territory (see here). The application process will be shortened, and third-country workers will be granted additional rights. For instance, they will be permitted to change employers, and a limited period of unemployment is allowed.

The revised directive entered into force on the twentieth day following its publication in the Official Journal of the European Union (publication date: 30 April 2024). Member States have a two-year period to transpose the Directive into their respective national laws.

Internet consultations

In our continuous effort to keep you informed on legislative developments, we wish to highlight the current consultation phase for upcoming legislation. This phase is an important step in the legislative process, allowing stakeholders to review and comment on proposed bills.

The following draft bills were opened for consultation:

• Act on transfer of undertaking in bankruptcy (Wet overgang van onderneming in faillissement): This draft bill is open for consultation until 1 September 2024. The proposed legislation aims to enhance the position of employees in the event of bankruptcy, especially in case of a transfer of undertaking during (during bankruptcy.
• Amendments of the so-called Waadi-regulation (Wijziging regeling Waadi in verband met de invoering an een toelatingsplicht van arbeidskrachten): This draft regulation is open for consultation until 12 April 2024. The amendments relate to changes in the Allocation of Labour by Intermediaries Act (Waadi), which are in turn related to the proposed Labour Posting Admission Act (Wtta).
• The introduction of bereavement leave act (Wet invoering rouwverlof): This draft bill is open for consultation until 13 June 2024. It aims to establish a statutory basis for bereavement leave. Under this bill, employees would be entitled to five days of paid leave in family situations involving minor children where either a parent or a minor child has passed away.
• Employee retention during crises act (Wetsvoorstel personeelsbehoud bij crisis): This draft bill is open for consultation until 25 June 2024. It is designed to support businesses and their employees in maintaining employment during crises that are beyond the control of the business and could not have been anticipated. The draft bill proposes to give employers the ability to temporarily reassign their staff in such situations or, if work cannot be performed, to pay a reduced wage and apply for wage subsidies.
• Act on disability insurance for self-employed workers (Wet basisverzekering arbeidsongeschiktheid zelfstandigen): This draft bill is open for consultation until 23 July 2024. It introduces a compulsory insurance against loss of income due to disability for self-employed workers. This can be obtained through public insurance or by securing a private insurance policy that meets certain criteria.
• Amendment of the regulation for child labour (Wijziging nadere regeling kinderarbeid): This draft regulation is open for consultation until 10 July 2024. With the proposed amendments, children aged 13 to 15 years would be allowed to work under strict conditions on non-school days and during holiday weeks until later hours, and also on Sundays.
• Pension legislation commitments act (Wet toezeggingen pensioenonderwerpen): This draft bill is open for consultation until 27 July 2024. During the deliberations of the Future Pensions Act (Wet toekomst pensioenen, Wtp) in the Senate, several commitments were made. This bill is designed to fulfil these commitments. One of the promises was to enable the voluntary continuation of orphan's pensions and to standardize the definition of a child. These two provisions are, among other things, addressed in this bill.

Case law

We have made a selection of the most significant recent employment law cases for employers, from the following courts: 

• The Supreme Court (Hoge Raad)
• The Central Appeals Tribunal (Centrale Raad van Beroep)
• The Court of Justice of the European Union (CJEU)

Supreme Court: trade union's right to negotiations in certain circumstances despite employer's consultation with works council

In this case, the Supreme Court addressed whether an employer can be forced to negotiate with a trade union on a collective labour agreement when the employer is already consulting with the works council on employment conditions. The Court determined that an employer's refusal to engage in negotiations with a trade union could be deemed unlawful under Article 6:162 of the Dutch Civil Code. The question whether this is the case depends on a balancing of interests, which must consider all relevant circumstances.

The Supreme Court provided several points of view to take into account, including the trade union's representativeness, expertise, and experience, as well as the level of employee support for the union. It is up to the trade union to articulate the specific circumstances that render the employer's refusal to negotiate as unlawful. Following an interest balancing exercise, the Supreme Court concluded that in the case at hand, the company TUI was acting unlawfully by not engaging in negotiations with the trade union FNV.

Reference: Supreme Court 26 April 2024, ECLI:NL:HR:2024:673

Supreme Court: entitlement to wage cost benefit (LKV) for older employee upon transfer of undertaking

In this case, the Supreme Court clarified the entitlement to the Wage Cost Benefit (LKV) for older employees in the context of a transfer of undertaking. The Supreme Court ruled that the situation of a transfer of undertaking for the application of the provisions on the LKV for older employee must be put on a par with the situation in which the employment relationship with the original employer remains unchanged. In other words it is an entitlement that transfers to the new owner. 

Reference: Supreme Court 24 May 2024, ECLI:NL:HR:2024:746

Central Appeals Tribunal: no compensation for transition fee after reduced waiting period

The Central Appeals Tribunal has upheld the denial of a claim for compensation of a transition fee paid by the employer, on the basis that the statutory conditions were not satisfied. Specifically, Article 7:673e (1) of the Dutch Civil Code stipulates that an employment contract must be terminated after the two-year period of the statutory prohibition on dismissal during illness, as outlined in Article 7:670 (1) and (11), to qualify for such compensation.

In this case, the employer's claim was rejected because the employment contract was terminated following a reduced waiting period, after which the employee was granted a disability benefit under the fully disabled workers income scheme (IVA) in accordance with the Work and Income (Capacity for Work) Act (WIA). The Tribunal found no exceptional circumstances that would warrant a deviation from the clear and mandatory provisions of Article 7:673e (1) of the Dutch Civil Code, even when considering the principles of proportionality and legal certainty.

Reference: Central Appeals Tribunal 8 May 2024, ECLI:NL:CRVB:2024:916

Central Appeals Tribunal: early termination clause in settlement agreement

This case concerns the early termination of a fixed-term employment contract through a settlement agreement. Included in this settlement agreement is a clause for early termination. Such a clause was not present in the employment contract. By incorporating the early termination clause into the settlement agreement, the condition set forth in Article 7:667 (3) of the Dutch Civil Code has been met. This condition requires that the right to terminate the contract early must be agreed upon in writing. The exclusion clause of Article 19 (4) of the Unemployment Insurance Act (WW) applies to situations where this condition has not been met. Therefore, this exclusion clause is not applicable in this case.

Reference: Central Appeals Tribunal 18 April 2024, ECLI:NL:CRVB:2024:791

Other

Enhanced flexibility for companies through increased overtime options with permanent contracts

Last year, the government reached an agreement with employers’ and employees’ organizations that ensures greater security for employees and enhanced agility for companies. One of the key elements of this labor market package is the expansion of overtime possibilities in the context of unemployment insurance premium differentiation (see here).

The premium differentiation means that employers pay a lower premium for permanent contracts and a higher premium for flexible contracts. To provide employers with flexibility, an employee is allowed to work 30% more hours in addition to their permanent contract hours. If an employee works more than 30% overtime on average beyond their fixed hours, the higher premium rate will apply retroactively for the entire year.

Larger employment contracts, where an employee works an average of 35 hours or more per week, are exempt from this rule. This exemption is now being extended to contracts with an average of more than 30 hours per week. This change increases the agility of companies while maintaining the security of employees' contracts. The amendment is estimated to result in a cost reduction for employers of 15.5 million euros.

Q1 update (January - March 2024)

Legislation

Labour Posting Admission Act

In an effort to address malpractices in the temporary employment sector, particularly those affecting migrant workers, the Dutch government is set to introduce a new regulatory framework. Starting in 2026, the Labour Posting Admission Act (Wet toelating terbeschikkingstelling van arbeidskrachten - Wtta) will mandate that all temporary employment agencies obtain authorization from the Minister of Social Affairs and Employment before they can provide employees.

Employment agencies seeking admission must demonstrate compliance with all relevant laws and regulations. Additionally, they are required to:

• Obtain a certificate of good conduct (Verklaring Omtrent het Gedrag, VOG).
• Provide a financial guarantee by depositing of EUR 100,000.
• Furnish proof of proper payment of salaries and taxes.

Once granted, the admission is valid for a period of four years.

The Dutch Labour Inspectorate is tasked with overseeing the adherence to the admission system. The Inspectorate has the authority to impose penalties on both employment agencies and hirers found in violation of the established rules. Furthermore, the Inspectorate can suspend or revoke an agency's authorization if necessary. To support these efforts, the Inspectorate will increase its workforce by 90 full-time equivalents (FTEs).

Employers intending to hire through employment agencies must ensure that they engage only with those that have been officially admitted under the new system. A public register will be available to verify the legitimacy of agencies.

The Labour Posting Admission Act is scheduled to come into effect on 1 January 2026. Enforcement by the Labour Inspectorate will commence one year later, from 1 January 2027.

The bill is currently under consideration by the House of Representatives and awaits further progression through the legislative process.

EU Platform Work Directive

On 11 March 2024, the Employment, Social Policy, Health and Consumer Affairs Council, comprising ministers from all Member States, approved the Platform Work Directive. This development follows a provisional agreement in December 2023 that failed to secure passage. Subsequent revisions to the directive did not initially garner sufficient support; however, consensus was ultimately reached, with France casting a dissenting vote and Germany abstaining.

A cornerstone of the directive is the establishment of a legal presumption that a contractual relationship between a digital platform and a worker constitutes an employment relationship, where:

• there are factual indications of control and direction;
• in accordance with national law, collective labour agreements or practice in Member States; and
• taking into account the case law of the Court of Justice of the EU.

Notably, the directive delegates to Member States the responsibility to define specific indicators of an employment relationship, diverging from earlier drafts that included such indicators at the EU level. Member States are also tasked with providing digital platforms, platform workers, and social partners with guidelines and practical recommendations.

The directive also introduces measures to enhance transparency and oversight concerning the use of automated systems by digital platforms:

• Information Rights: Platform workers must be informed about the implementation of automated monitoring or decision-making systems.
• Data Processing Restrictions: The directive prohibits digital platforms from processing certain types of personal data through automated systems.
• Human Oversight: There must be human oversight of automated decisions that directly affect the persons performing platform work. Additionally, platform workers are entitled to explanations of these decisions and can request that the platform review them.

The European Parliament adopted the agreement on the Platform Work Directive on 24 April 2024 (see here). The directive awaits ratification by the Council. Upon ratification, Member States will have a two-year period to transpose the directive into national law.

EU Regulation on Forced Labour Products

On 5 March 2024, a provisional agreement was reached between the Council and the European Parliament concerning a new regulation that aims to eliminate forced labour products from the EU market (see here). This regulation prohibits market participants to place or make available on the EU market products that are made with forced labour and to export such products.

Key aspects of the regulation are: 

• Risk Assessment Database: The European Commission is tasked with developing a comprehensive database to assess the risks associated with forced labour in specific geographic areas or with respect to specific products. This resource will compile reports from various international organizations and serve as a tool for both the Commission and national authorities to identify and address  potential infringements.
• Risk-based investigation approach: Investigations into suspected forced labour will adopt a risk-based methodology. Factors such as the scale and severity of the suspected forced labour, the volume of products involved and the role of economic operators within the supply chain will be considered.
• Guidelines and best practices: To facilitate compliance, the Commission will issue detailed guidelines outlining best practices for the eradication of forced labour. These guidelines are intended to assist market participants and competent authorities in adhering to the new regulation.
• Investigative responsibilities: The Commission will lead investigations related to alleged forced labour occurring outside the EU, while national authorities will handle cases within the EU. There will be a cooperative effort to exchange information. Market participants will have the right to be hear at all stages during the investigative process.
• Enforcement and market withdrawal: In instances where forced labour is confirmed, the leading authority may decide to prohibit or withdraw the affected product from the market. This decision will be recognized across all Member States. However, there are provisions for exceptions, particularly for critical products or components that can be replaced. For example, if a component of a product is identified as being produced through forced labour, only the component may need to be removed rather than the entire product.

The provisional agreement has been adopted by the European Parliament on 23 April 2024 and is pending ratification by the Council.

EU Works Council Directive

The European Commission has put forward a proposal to revise the European Works Councils (EWCs) Directive, to further improve social dialogue in the EU (see here). The proposed revision aims to strengthen the role of EWCs by facilitating their creation, fostering more meaningful information and consultation, and ensuring they have the necessary capacity to carry out their work.

The main changes are:

• Giving equal rights to workers of multinational companies operating in the EU to request the creation of a new EWC: This revision is set to eliminate exemptions from the current Directive, thereby granting an additional 5.4 million workers across 320 multinational companies with pre-existing agreements the right to request the formation of an EWC.
• Clarifying the definition of transnational matters: This is intended to ensure that EWCs' roles are complementary to, rather than duplicative of, national information and consultation bodies. A precise definition is essential to ascertain the specific instances when EWCs should be consulted.
• Timely and meaningful consultation: This revision mandates that EWC members must receive a reasoned response from company management to their opinions prior to making decisions on transnational issues. Additionally, management must provide justifications whenever confidentiality is given as a reason for restricting the further sharing of information or not disclosing information on transnational matters.
• Resource allocation for EWCs: To ensure EWCs are adequately equipped to fulfill their mandate, the revised Directive will require EWC agreements to clearly outline the financial and material resources provided, including access to experts, coverage of legal costs, and training provisions.
• Promoting gender balance: When EWC agreements are negotiated or renegotiated, measures must be implemented to achieve, as far as possible, a gender-balanced composition. This includes actively pursuing gender balance within special negotiating bodies tasked with establishing EWC agreements.
• Legal remedies and sanctions: This revision addresses the enforcement of the Directive, mandating Member States to inform the European Commission about the judicial and administrative proceedings available to EWCs. Furthermore, Member States are required to establish effective, dissuasive, and proportionate sanctions to ensure compliance with the Directive.

The proposed amendments will be discussed by the European Parliament and the Member States. Following adoption, Member States will have one year to transpose the Directive into national law, with the new rules coming into effect two years thereafter. During this two-year period, existing EWC agreements may be adjusted to align with the revised Directive.

Internet consultations

In our continuous effort to keep you informed on legislative developments, we wish to highlight the current consultation phase for upcoming legislation. This phase is an important step in the legislative process, allowing stakeholders to review and comment on proposed bills.

The following draft bills were opened for consultation:

• Decree on anonymous reporting of suspected wrongdoings (Besluit anoniem melden vermoedens van misstanden): This draft bill is open for consultation until the 14th of May. It aims to establish a framework for the anonymous reporting of suspected misconduct within organizations.
• Act on the modernization of the non-compete clause (Wet modernisering concurrentiebeding):  The draft bill is open for consultation until the 15th of April. It seeks to modernize the rules on non-compete clauses in employment contracts.

Following the closure of the consultation periods, the ministries will review all submissions and may revise the draft bills accordingly. Only after this review process will the formal legislative process commence. We will provide more detailed information of each bill as soon as the formal legislative process is underway.

Case law

We have made a selection of the most significant recent employment law cases for employers, from the following courts: 

• The Supreme Court (Hoge Raad)
• The Central Appeals Tribunal (Centrale Raad van Beroep)
• The Court of Justice of the European Union (CJEU)

Supreme Court: Stand-By Duty as Working Time Under Directive 2003/88/EC

In a recent judgment, the Supreme Court addressed the classification of stand-by duty for ambulance personnel in the context of working time as defined by Article 2 of Directive 2003/88/EC. The Court's deliberation was informed by the jurisprudence of the Court of Justice of the European Union (CJEU). The Court found that if the required response time during stand-by periods objectively and substantially limits an employee's ability to use that time for their own purposes, such periods should generally be regarded as working time. This holds true regardless of the average number of interventions; infrequent call-outs do not alter this classification. Additionally, the Supreme Court recognized that certain factors, such as the obligation to wear a uniform and the psychological burden of being on-call ('pager pressure'), can influence an employee's capacity to freely enjoy their time. These considerations led to the reversal of the Court of Appeal's judgment.

Reference: Supreme Court 15 March 2024, ECLI:NL:HR 2024:426

Supreme Court: Xella proposal – reference date regarding the existence of real reintegration opportunities

The Supreme Court has determined that when an employer contends that an exception to the principle established in the Xella decision applies (specifically, on the basis that there are viable opportunities for the employee's reintegration) the evaluation of this must occur at the moment the employee proposes to terminate the employment contract by mutual consent and to pay an compensation equal to the transition fee. This is because it is only upon the employee's initiation of such a proposal that the employer may be compelled to consent to it, in accordance with the principles of good employment practices as outlined in Article 7:611 of the Dutch Civil Code. In determining whether the employer has a legitimate interest in continuing the employment relationship at the time of the proposal, it is necessary to consider facts and circumstances that arose before or after that moment, insofar as they are relevant.

Reference: Supreme Court, 15 March 2024, ECLI:NL:HR:2024:400

Supreme Court: is the nature of the legal relationship (whether or not an employment contract) relevant for the assessment of the validity of an arbitration clause?

The Court of Appeal ruled that an arbitration clause was valid, even if the legal relationship had to be classified as an employment contract. The Supreme Court upheld this decision.

Reference: Supreme Court 2 February 2024, ECLI:NL:HR 2024:151

Supreme Court: Notification Requirement in the Event of Summary Dismissal

This case pertains to a physical altercation that occurred in the workplace on a Monday. The employee involved was immediately suspended on the same day. The employer conducted a hearing with the employee on the following Wednesday and subsequently communicated the employee's immediate dismissal via telephone two days later, stating, "You know why; we discussed this on Wednesday." The dismissal was formally confirmed in a written letter on the Thursday of the next week. During the proceedings before the Supreme Court, one of the issues raised was whether the employer had fulfilled the notification requirement. The Court of Appeals had previously affirmed that the requirement had been met. The Supreme Court concurred with this decision.

Reference: Supreme Court, 2 February 2024, ECLI:NL:HR:2024:159

Supreme Court: Does ‘clear and unambiguous’-measure also apply in the event that the employer claims to have terminated the employment contract and the employee states that he has not understood this?

According to established case law, in order to answer the question of whether an employee has voluntarily wanted to terminate his or her employment, it must be assessed whether there is a clear and unambiguous statement by the employee aimed at this. This criterion of a clear and unambiguous statement does not apply in the event that it must be assessed whether a statement from the employer constitutes a termination of the employment contract. Furthermore, the employer is not always obliged to check whether the employee has understood that the employer has terminated the employment contract and/or to inform the employee about the consequences of that termination. Whether the employer is obliged to do so depends on the circumstances of the case.

Reference: Supreme Court 26 January 2024, ECLI:NL:HR 2024:111

CJEU: employer has taken measures to reduce the number of involuntary redundancies (by allowing some of the employees to leave voluntarily) - collective redundancy procedure is required

This case concerns a dispute between two employees and their employer about the lawfulness of their dismissal. The central question is whether the procedure for collective dismissal should have been followed. The CJEU ruled as follows. Union law (Directive 98/59/EC on collective redundancies) must be interpreted as meaning that the obligation to consult laid down therein arises as soon as the employer, in the context of a restructuring plan, considers or intends to eliminate a number of jobs and this number may exceed the thresholds laid down in that Directive, and not at the time when the employer, after having taken measures to reduce that number, obtains the assurance that it will actually have to proceed to the dismissal of a number of employees exceeding those thresholds.

Reference: CJEU 22 February 2024, C-589/22 (Resorts Mallorca Hotels International)

Other

OCTAS: Three variants for a future-proof occupational disability benefits system

On January 29, 2024, the Independent Committee on the Future of the Disability Benefits System (OCTAS) submitted its report on the future of the occupational disability benefits system. The report contains three variants. The Minister of Social Affairs and Employment will assess the report and further develop the three variants before the end of 2024.

SER: Data explorer unveils gender balance in Dutch companies

The Social and Economic Council (SER) introduced the SER Data Explorer on 29 January 2024. This tool provides Dutch companies insight into the gender ratio on a large scale for the first time, with target figures and plans to achieve the ambitions. The analysis encompassed reports from over 2,000 companies. Further insights can be found in the SER Scorecard 2024 – a monitor of the gender balance within Dutch companies.

Guide on culture change in the workplace

On 13 March 2024, the government's commissioner for issues related to sexual misconduct and sexual violence, Mariëtte Hamer, unveiled the latest edition of the guide on culture change in the workplace. This guide is aimed at addressing and preventing sexual misconduct in the workplace.

Lifting of the enforcement moratorium on self-employed workers

The enforcement moratorium concerning self-employed workers and the issue of bogus self-employment is scheduled to be lifted on 1 January 2025. In preparation, the Tax Authorities have developed an enforcement plan to be executed in three phases:

• 2023 Phase: "Strengthening and improving enforcement"
• 2024 Phase: "Preparation for lifting the enforcement moratorium"
• 2025 Phase: "Enforcement post-moratorium"

The Enforcement Plan for the 2024 Phase was published in early March. It details the preparatory activities that will facilitate the removal of the enforcement moratorium.

Amendments as of 1 January 2024

Adoption of minimum hourly wage and indexation

The Minimum Hourly Wage Act came into effect on 1 January 2024. Employers are now required to pay employees at least the statutory minimum wage per hour. There is a single minimum hourly wage for all employees aged 21 and over. For employees younger than 21, minimum youth wages apply. The minimum hourly wage level is derived from the previous minimum monthly wage for a full-time workweek of 36 hours. Consequently, employees earning the minimum wage who work more than 36 hours per week (for example, 38 or 40 hours) will see an increase in their earnings. Salary scales in collective labour agreements or other employment conditions schemes must be adjusted accordingly, if they have not been already.

The minimum hourly wage is subject to biannual indexation. As of 1 January 2024, the increase is set at 3.75%. The minimum hourly wage for employees aged 21 and over is now EUR 13.27 gross. Current amounts are available on the Dutch government's website.

The Ministry of Social Affairs and Employment has released a knowledge document addressing frequently asked questions about the implementation of the minimum wage.

Whistleblower Protection Act

The Whistleblower Protection Act initially came into force for large employers (those with at least 250 employees) on 18 February 2023. On 17 December 2023, the Act was extended to medium-sized employers, affecting all employers with 50 or more employees. However, the sanctioning powers of the Whistleblowers Authority and the procedures for anonymous reporting are still to be detailed in a regulation (AMvB).

Amendments to the 30% tax facility

The 30% tax facility allows for 30% of the salary to be paid tax-free to incoming expatriates for five years. Effective 1 January 2024, two changes will be implemented. Firstly, the 30% tax facility will be capped at the maximum remuneration under the Executives' Pay (Standards) Act (WNT) (2024: EUR 233,000 gross). This cap applies to expatriates utilizing the 30% tax facility from 1 January 2023. A transitional arrangement is in place for expatriates who were already benefiting from the 30% tax facility in 2022; they will be subject to the cap starting in 2026.

Additionally, the 30% tax facility will be phased out. From 1 January 2024, an exemption of 30% of pay is applicable for the first 20 months, 20% for the subsequent 20 months, and 10% for the final 20 months. Expatriates already covered by the 30% tax facility in 2023 are exempt from this phasing-out scheme.

During Senate deliberations on the phasing-out scheme, a motion was passed concerning the 30% tax facility. The motion requests that the government expedite the evaluation of the facility and propose an alternative in the Tax Plan 2025 that would be less detrimental to the economy. Therefore, it is possible that the reduction of the 30% tax facility may be reversed or replaced by a measure that is less stringent.

Model agreements based on free replacement withdrawn

In the Deliveroo judgment of 24 March 2023, the Supreme Court determined that Deliveroo couriers are employees rather than self-employed contractors. The Court stated that the existence of an employment contract should be assessed based on all case-specific circumstances. The requirement to carry out the work personally is one of the factors that may be significant in this assessment but is not conclusive. As a result, model agreements based on free replacement are no longer valid. The Tax Authorities will withdraw the approval of these model agreements as of 1 January 2024. Parties using these agreements must reassess their working relationship by this date.

Further details are available in the Tax Authorities' news release dated 14 August 2023. Other general model agreements that remain valid can be found on the Tax Authorities' website.

State Pension (AOW) Age Unchanged in 2029

The state pension age will be 67 years from 2024 to 2027, and it will increase to 67 years and three months in 2028. The Minister of Poverty Policy, Participation and Pensions has announced that the state pension age will remain at 67 years and three months in 2029. For more details, visit the Dutch government's website.

Indexations

• Increase in maximum transition fee: The maximum transition fee in 2024 is EUR 94,000 gross (2023: EUR 89,000 gross) or a maximum of one annual salary if the salary exceeds this amount.
• Increase in maximum payment under the Executives' Pay (Standards) Act (WNT): For 2024, the general maximum remuneration under the WNT is set at EUR 233,000 gross (2023: EUR 223,000 gross). The WNT limits the compensation of top officials in the (semi-)public sector. Different maximums apply to sectors such as education, culture, media, housing associations, healthcare, and development cooperation. A higher maximum is applicable to health insurers. An overview of the WNT remuneration maximums for 2024 is available. The new Implementing Regulations WNT 2024 (Uitvoeringsregeling WNT 2024) and Policy Rules WNT 2024 (Beleidsregels WNT 2024) have been published, with no substantive changes from the previous year.
• Tax-free home working allowance: The tax-free allowance for home working will be increased to a maximum of EUR 2.35 per day in 2024 (2023: EUR 2.15).
• Tax-free travel allowance: The tax-free travel allowance will be increased to a maximum of EUR 0.23 per kilometer in 2024 (2023: EUR 0.21).
• Work-related expense scheme: The temporary increase in the free space within the work costs scheme will end. From 2024, the free space for the wage bill up to and including EUR 400,000 will be 1.92% (2023: 3%). The free space for the wage bill exceeding EUR 400,000 remains unchanged at 1.18%.
• Maximum Pensionable Salary: The maximum pensionable wage as of 1January 2024, has been provisionally set at EUR 137,800 gross (2023: EUR 128,810 gross). For more information, consult the Tax Authorities' website.

For a comprehensive overview of the (other) tax changes related to labour and wages as of 1 January 2024, see the Dutch Authorities' Newsletter on Payroll Taxes 2024.