Netherlands: New legislative proposal monitoring discrimination free recruitment and selection has been adopted by the House of Representatives/the Second Chamber

On 14 March 2023, the legislative proposal monitoring discrimination-free recruitment was passed by the House of Representatives.

The bill aims to provide equal opportunities and to avoid discrimination in recruitment and selection.   To achieve this goal, employers with more than 25 employees are required to start drawing up a written procedure in which the employer shows how it searches for potential employees and how it prevents discrimination.

The procedure should meet the following requirements:

• It must demonstrate that various forms of discrimination, such as those that may occur through electronic systems, have been considered and addressed;
• It needs to contain activities (interventions) to prevent discrimination in recruitment and selection;
• It must demonstrate that it is grounded in job requirements that are pertinent to the role;
• It needs to be transparent, verifiable and systematic.

Furthermore, the legislative proposal mandates that employers inform individuals involved in recruitment and selection processes about their efforts to prevent employment discrimination, as well as the measures they have taken to ensure fair recruitment and selection practices.

The Dutch Labour inspectorate will then check whether employers have an effective method and impose a fine if employers do not have this working method, this will also be made public. Finally, the legislative proposal mandates reporting any discriminatory requests made to the labour mediator or labour supplier.

The proposal bill includes amendments to both the Allocation and Employment of Workers by Intermediaries Act (WAADI) and the Working Conditions Act (Arbowet). The adjustments will give the inspectorate of Social Affairs and Employment (SZW) the authorisation they need to oversee that the process is discrimination-free. For example, the WAADI will be changed to give the inspectorate the jurisdiction to use the instrument of the demand for compliance.

The bill is part of a larger government action plan to combat employment discrimination.

Tackling employment discrimination focuses on the following three pillars:

• monitoring and enforcement;
• research and instruments;
• knowledge and awareness-raising.

The exact date when the law will take effect remains uncertain, however, it is anticipated to be around mid-2024. And in the event that the law is adopted, a grace period of nine months will be granted for its implementation. During those nine months, awareness campaigns and auxiliary materials will be made available to employers.

Key Action Points for Human Resources and In-house Counsel

• This legislative proposal is significant for employers with more than 25 employees. It is advised to keep track if/when the law is adopted (probably around mid 2024);
• Upon the adoption of the law, it will be necessary for employers to ensure their procedure is in accordance with the bill.