Netherlands: employers demand layoff reform and mobility bonus for seniors

When presenting, on April 22nd, its view of the country’s future, the VNO-NCW announced that it wanted a new agreement with unions and the government that will come out of the legislative elections of June 9. Employers want, “by the end of the year,” to bring layoff benefits to a maximum of six months’ pay, and layoff benefits down to 12 months instead of a maximum of three years and two months since 2005 (instead of five years before – see our dispatch No. 100021). The VNO-NCW says it was ready for massive investments into training with training and retraining programs for the employees let go. It also proposes a “mobility bonus” the modalities of which have yet to be defined to encourage seniors to change employers. Bernard Wientjes, head of the Dutch employers’ organization, says that there is a de facto immobility bonus: if you’re 50 and you’ve been working in the same company for 20 years, leaving benefits are, in practice, an acquired right.” Instead of employees waiting for these benefits (one month pay per seniority year), employers propose a bonus based on “one day or week per year worked.” Mr. Weintjes recommends more flexibility for seniors, who should be more easily able to go from a full time to a part time job at the end of their career. Employers think the reform is necessary since the active population keeps getting older and that, since the birthrate is low, there should be no ‘relief team.’ The objective is to maintain senior active longer to be prepared for the coming workforce shortages in the mid run.