Presenters & Creators:
Luís Almeida Caneiro, Espanha e Associados (Portugal - TAGLaw)
Paul Beard, Alexander Beard Group (United Kingdom - TAG-SP)
Naureen Hussain, Clarkslegal LLP (Reading, England - TAGLaw)
Danielle Muller, Rassers Advocaten (Netherlands - TAGLaw)
During the main conference sessions we will discuss how millennials and the generation gap are impacting our firms. In this session we will discuss and address how millennials impact our clients and prospective clients. The injection of talented millennials into the workforce has changed the way clients recruit, train and retain employees. Additionally, the benefits that were important to “the greatest generation” might not always strike a chord with millennials. What are the legal implications and concerns that lawyers need to communicate to their clients in regards to millennials (e.g. independent contractor versus employee)? What benefits can a client offer their millennial employees to have an advantage in the competitive market for talent? How are various jurisdictions adjusting to the new workforce in regards to taxation and pension implications? These questions and more will be answered in an interactive discussion with TAGLaw and TAG Alliances colleagues from around the world.
24. Dutch Employment Law ‘Millennials proof’?
TAGLaw Lisbon 2016
Employment & Labour Specialty Group
Danielle Muller
25. 20th Century
Pag 25
Dutch employment law originates from beginning of
20th century:
industrial revolution and emergence of socialist
workers’ movement
Resulted in:
statutory protection of employees against
suppression and exploitation by employers
26. 20th Century
Pag 26
Ultimate goal for a worker:
permanent (= open-ended) employment contract
Strong position for Unions:
terms of employment in binding collective bargaining
agreements
27. Employment contracts
Compulsory statutory law
2 types of employment contracts:
- permanent (=open-ended) contract: dismissal
procedure necessary to terminate
- fixed term contract: terminates automatically by
operation of the law
Pag 27
28. Employment contracts
Legal assumption
a person who has been working for another person
or corporation every week*) or 20 hours or more
every month for at least 3 consecutive months, is
assumed to be an employee with a permanent
contract.
*) regardless the amount of hours
Pag 28
29. 21st Century
Hundred years later prevailing political view still:
permanent contract is the best thing.
January 1st, 2015
Work and Security Act (Wet Werk en Zekerheid)
entered into effect.
One of the goals: less flexibility. A permanent contract
for all employees as soon as possible.
Pag 29
30. Less flexibility
Pag 30
How?
Limited use of fixed term contracts
Fixed term employment contract will automatically
convert into a permanent employment contract if:
- a chain of fixed term employment contracts
covers 24 months or more; or
- a chain of three fixed term employment contracts
is continued.
31. Result: counter effect
Pag 31
Employers hesitant with permanent contracts:
- high level of protection against dismissal
- high costs of employment: obligation to pay
salary during first 2 years of sickness, statutory
severance payment after 24 months of service
Daily practice:
- dismissal of flexworkers after 24 months
- huge increase of self-employed / independent
contractors
33. Self-employed/Independent contractors
Pag 33
But government not happy.
May 1st, 2016
New weapon into ‘fight’ to discourage flexibilty:
Decree making employer and independent
contractor equally responsible for paying income tax
and social premies (instead of sole responsibility
independent contractor)
34. Millenials
Millennials:
- different view on employment relationship
- different desires.
- above all want more freedom, more flexibility.
Millenials change jobs more frequently and they live
longer.
Pag 34
35. Millenials
Increase of demand for starters in especially ICT,
sales and engineers and technicians à i.e. the
Millennials
Expectation:
in 2025 Millennials will have approx. 75% of all jobs
Pag 35
36. Challenges
Is employment contract still the Holy Grail?
Being an independent contractor suits a part of
Millennials better than straitjacket of permanent
employment contract.
Employment contract 2.0 should reflect:
- flexibility for employer ànd employee (hours, terms
and conditions, etc.)
- certain level of security/protection of employee.
Pag 36
37. Philosophical
Will it change?
Important factor still: the Unions.
They have much political influence.
But for how long?
Unions loose ground among work force. Majority of
members is 55+.
Young people are not interested in Unions
(individualization of society).
Pag 37
38. Philosophical
Pag 38
My view:
Unions should let go the idea of permanent contract
as the ‘holy grail’ and negotiate broad range of terms
and conditions of employment and general budgets.
Employer and employee must be able to pick those
terms and conditions that suit them best.