Netherlands: Parliament criticizes plan to limit severance pay for high wages

This is an unusual situation: on February 3, the Christian Democratic Appeal (CDA, in power), rejected, in Parliament, a reform presented by one of its own Ministers, Piet Hein Donner. The Labor Party and the orthodox Christians, member of the coalition in power since February 2007, are also against the idea of limiting severance pay for high wages. Employers and unions are for it, though for different reasons: employers see this as a way to save money while unions want to limit the gap between high and low wages. In March 2009, the social partners were against the draft presented by Piet Hein Donner (see our dispatch No. 090319), which they then used for bargaining. They signed a memorandum of understanding on September 13, 2009, which ended several years of debate on flexible layoff procedures. Unions accepted the limit provided that layoff conditions and severance pay for average and low wages wasn’t changed.
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March 2009, the social partners were against the draft presented by Piet Hein Donner (see our dispatch No. 090319), which they then used for bargaining. They signed a memorandum of understanding on September 13, 2009, which ended several years of debate on flexible layoff procedures. Unions accepted the limit provided that layoff conditions and severance pay for average and low wages wasn’t changed.

The Parliament heard criticism from the State Council, which renders advisory opinions in the Net

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