More flexibility for the Labour Market in Balance Act / premium differentiation Unemployment Benefit (WW)

Employment

Two extensions apply here:

1) Since 1 January, employers pay a low WW (unemployment benefit) premium for permanent contracts and a high WW premium for flexible contracts as a result of the Labour Market in Balance Act (Wab). On 9 December 2019, the Minister of SZW announced that employers will have until 1 April 2020 to write down a permanent employment contract, in order to meet the conditions for the low WW premium.

Because it will not be practically possible for all employers to meet the administrative conditions, the coulance period has been extended until 1 July. The coulance regime, which is valid for employees who were employed for an indefinite period of time no later than 31 December 2019, will therefore apply until 30 June 2020.

2) On the basis of the WAB, a revision situation applies: employers retroactively pay the high WW premium for permanent employees who have worked more than 30% overtime in a calendar year. This provision may now lead to unintended effects in sectors where the coronavirus requires a lot of extra overtime (e.g. health care). The Labour Foundation has requested that this revision regulation be amended. The Cabinet is willing to do so and will prepare an amendment to remove these unintended effects. The Minister of Social Affairs and Employment (SZW) has promised to implement this adjustment, which will apply to calendar year 2020, as soon as possible.

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