Netherlands: The Government’s Resignation Likely Delays Labour Market Reforms

In April of this year, the Government announced its new plans for labour market reforms, including the elimination of on-call contracts and stricter rules on the number of consecutive fixed-term contracts. The legislation was expected to be submitted to the House of Representatives in the spring of 2024. However, with the Government having tendered its resignation last week, it is likely that these plans will be postponed.

In September, the House of Representatives will meet to decide whether the proposed legislation can proceed or whether it will be declared controversial. If the latter is the case, the proposed reforms cannot be implemented until the next Government. Elections are likely to be held in November, after which it may be some time before there is a new Government. Therefore, it remains uncertain whether if and when the proposed plans will be implemented.

Key Action Points for Human Resources and In-house Counsel

Proposed labour market reforms may be delayed or cancelled and therefore it is important to monitor developments closely. If there are any new developments, we will keep you informed.