Author: Rob van Eldik
In 2026, a series of legislative proposals will either be awaiting approval from Dutch Parliament or set to be implemented. The following topics can be distinguished and will be discussed:
- General changes to the labour market
- Implementation of the Wage Transparency Act
- Limitation of Compensation for Transition Payments Sick Employees
- Legislative Proposal for a Code of Conduct for Undesirable Behaviour
- Indexation 2026
- Assessment of self-employment
- Self-employed Persons Act
- Assessment of Employment Relationships and Legal Presumption (Clarification) Act
- Flexible employment
- More Security for Flexible Workers Act
- Provision of Personnel (Accreditation) Act
1. General changes to the labour market
Implementation of the Wage Transparency Act
The Wage Transparency Act implements the European Pay Transparency Directive (EU) 2023/970, which entered into force on 7 June 2023 and must be transposed into national law by 7 June 2026. In the Netherlands, this timeline will not be met. Instead, the Act is expected to enter into force on 1 January 2027.
The Act aims to reduce pay inequality by requiring employers to apply objective and gender-neutral pay criteria, provide transparency on pay-setting and progression, and, for employers with more than 100 employees, report publicly on gender pay gaps. Where unjustified pay differences are identified, employers must take corrective action within a reasonable timeframe and, in cases of significant and persistent disparities, carry out a formal pay evaluation in cooperation with employee representatives. Employers are advised to timely assess their pay structures and if possible, carry out a dry run before the new legislation will come into force to test whether their pay structures and processes comply with the upcoming legal requirements.
Legislative Proposal Limitation of Compensation for Transition Payments to Sick Employees
Currently, employers who must pay a transition payment upon terminating an employment contract after two years of illness (or longer in the case of a wage penalty) can apply for compensation from the UWV. However, under the Legislative Proposal “Limitation of Compensation Scheme for Transition Payments to Long-term Illness,” on 1 July 2026, this compensation will generally be restricted to small employers (who employ around 25 employees). According to the Proposal, medium-sized and large employers will no longer be reimbursed.
Legislative Proposal for a Code of Conduct for Undesirable Behaviour
On 18 February 2025, the Legislative Proposal on the Code of Conduct for Undesirable Behaviour was submitted for public internet consultation; its subsequent progress remains unclear at this date. The Proposal would require employers with ten or more employees to adopt a code of conduct addressing undesirable behaviour in the workplace. According to the Proposal, a code of conduct can contribute to a culture in the workplace in which it is natural to address each other’s behaviour to help intervene quickly in the event of undesirable behaviour.
Indexation 2026
- Maximum transition allowance
On 1 January 2026, the statutory transition allowance will be capped at €102,000 gross. Alternatively, if the employee’s annual salary exceeds €102,000 gross, the transition allowance will be capped at one gross annual salary.
- Senior Executives in the Public and Semi-Public Sector (Standards for Remuneration) Act
This Act sets limits on the maximum remuneration for senior officials in the (semi-)public sector. For 2025, the maximum remuneration was set at €246,000 gross. In 2026, the general remuneration maximum will increase to €262,000 gross.
For employees aged 21 and over, the statutory minimum wage will increase to €14.71 gross per hour on 1 January 2026. As of 1 July 2025, the minimum wage was €14.40 per hour.
- Working from home allowance/travel allowance
The maximum tax-free allowance for employees who work from home will increase from €2.40 to €2.45 per day. The maximum tax-free travel allowance will remain unchanged in 2026 at €0.23 per kilometre, the same rate as in 2025.
2. Self-employment assessment
The qualification of employment relationships remains a hot topic in the Netherlands.
Since 1 January 2025, the Dutch Tax Authorities have been enforcing the rules on false self-employment in full. However, a so-called soft landing applied for the year 2025. During this period, in principle, no fines were imposed. This gave entrepreneurs time to properly arrange their employment relationships, with genuine self-employed persons or employees. On 1 January 2026, the tax authorities will resume full enforcement of the rules on false self-employment. This means that fines may be imposed again. In addition, the principle that a company visit must take place before an investigation can be conducted no longer applies. This marks the end of the soft-landing period.
The Dutch legislator is currently working on implementation of a new assessment framework for false self-employment. Two legislative proposals are currently pending in Dutch Parliament. The aim is that one of these legislative proposals will come into force on 1 July 2026.
Self-employed Persons Act
The core of this Proposal is the establishment of a clear legal assessment framework to determine whether an individual works as an employee or is self-employed. The Act introduces a self-employment test and a working relationship test.
To qualify as a self-employed worker, an individual must satisfy both tests. By providing a transparent and structured assessment framework, the proposal offers legal certainty upfront to both contractors and their principals. The Act introduces an assessment committee that can be requested to determine whether a working relationship qualifies as self-employed. The decision of this committee will be binding, including for the Tax authorities. This will enable parties to obtain clarity on their legal status in advance. The Self-Employment Act was introduced by four political parties in Dutch Parliament. Three of these parties (D66, CDA, and VVD) are well positioned to participate in the formation of a future government and have recently confirmed they prefer the Self-employed Persons Act as the way forward to determine whether an individual is self-employment or an employee.
Assessment of Employment Relationships and Legal Presumption (clarification) Act
This legislative Proposal aims to provide criteria to determine whether an individual is an employee or works as a self-employed person. The Act introduces five criteria to determine whether the working relationship is an employment relationship. The criteria include working under guidance and supervision of the company and whether the work has a structural nature. The other five criteria determine whether an individual is self-employed. Criteria to determine this include financial risk is borne by the individual and the individual has specific or special knowledge that is not available within the organisation itself. In addition, the Proposal introduces a legal presumption of employment in the case of a low hourly rate. If a self-employed person receives less than 36 euros per hour, he or she can claim that an employment contract exists. Qualification of the employment relationship can occur retroactively.
3. Flexible employment
The Dutch legislature intends to strengthen the legal position of flexible workers and to combat abuse in the temporary workers’ sector. In this regard, the Supreme Court ruled this year in the Upfield-case that the need of a company for a flexible workforce does not in itself justify employing temporary workers on a permanent basis.
More Security for Flexible Workers Act
On 19 May 2025, the government submitted the legislative proposal “More Security for Flexible Workers Act” to Dutch Parliament. If the Senate also approves the legislative proposal, the Act will enter into force on 1 January 2027. The Proposal introduces measures aimed at strengthening the position of flexible workers and reducing the differences between permanent and flexible employment contracts. For employers, this will further limit the possibility to make use of flexible forms of employment.
Zero-hours contracts will be abolished and replaced by a so-called “basic contract.” Under this contract, a fixed minimum number of working hours per week must be agreed, for which the employee will always be paid.
In addition, stricter rules will apply to fixed-term contracts. Currently, employers may offer up to three fixed-term contracts within a period of three years, after which a break of six months is required before starting a new chain. Under the proposal, this mandatory break will be extended to five years.
The provision on equal pay for agency workers may enter into force earlier, on 1 January 2026. Agency workers will be entitled to a permanent contract more quickly, and the chain of temporary agency contracts will be limited to a maximum of three years. Furthermore, agency workers will be entitled to the same employment conditions (such as pay, allowances, and leave) as permanent employees performing the same work. These principles are also reflected in the new agency work collective labour agreement, which will take effect on 1 January 2026 and aligns with the government’s plans to provide greater security for flexible work.
Provision of Personnel (Accreditation) Act
The Legislative Proposal has been passed by Dutch Parliament and the Senate, meaning that the Act will enter into force on 1 January 2027. This Act introduces an authorisation system for temporary worker agencies and other companies that supply workers (suppliers). Temporary worker agencies that continue to supply temporary workers must register with the Dutch Authority for the Temporary Workers Market (NAU) before 1 January 2027. The core of this new system is that agencies may only make temporary workers available if they are authorised for this by the NAU and if they meet the criteria set by the Act. These criteria require a temporary workers agency to obtain a Certificate of Good Conduct (VOG), a deposit of EUR 100,000 and supply a certificate that they comply with relevant legislation. On 1 January 2028, the Dutch Labour Inspectorate will start enforcing the new system. Agencies operating on the labour market without authorisation will be fined.
