Netherlands: dismissal legislation amended

Five political parties forming a majority signed the “Kundunz” agreement – the name given to the 2013 budget.  The Parliament adopted it on April 26 and Queen Beatrix will present it on September 18.  The early legislative election of September 12 will not put into question this austerity budget, which provides the Netherlands with their roadmap for 2013.  Indeed, as is traditionally the case in the Netherlands, several weeks of negotiations will follow to form a new coalition government.  The budget, which plans to quicken the pension reform (see our dispatch No.  120284), is also going to make layoff legislation more flexible, a reform employers have been asking for for over ten years.  Starting in 2014, employers will no longer be able to send a file to the unemployment insurance (UWV) or the tribunal to let an employee go.  In theory, the UWV deals with contract terminations and can oppose them.  To go faster and be sure to win, in return for compensation, many employers directly go to court (see our dispatch No.  090887).  From now on, employees will have to challenge the layoff in court.  Besides, compensation is going to decrease, going from at least one month’s pay per year spent in the company (known in the Netherlands as the ‘magistrate’s system’) to only one fourth of the salary per year in the company.  “Someone who has been working for 8 years can end up with two months’ pay, which is like a tip, and whereas workers need support to train and find a new job” explained Catalene Passchier, from the Dutch Labor Federation and Allies (FNV Bondgenoten).