All temporary workers receive the same employment conditions

Employee organizations (FNV, CNV Vakmensen, De Unie, and LBV) and employer organizations (ABU and NBBU) in the temporary employment sector have reached a negotiation result for the collective labor agreements. A milestone in this result is to achieve equal collective labor agreement arrangements for the entire sector. This means that the ABU and NBBU collective labor agreements will be fully merged. This implies that all temporary workers will receive the same employment conditions. Benefits for temporary workers highlighted in this collective labor agreement include a better legal position, more job security, and better guidance to remain sustainably employable.

For both the collective labor agreement as it will apply from September 1, 2019, and for the renewed and harmonized collective labor agreement that will take effect from December 30, 2019, a general binding declaration will be requested as soon as possible.

Changes as of September 1, 2019

In anticipation of the merger of the collective labor agreements, several aspects have already been changed in the collective labor agreements in September. The remuneration and employment history, among other things, have already been modified.

Legal Position
• Temporary workers retain their legal position in the phase system if they, at the request of the temporary employment agency, join another temporary employment agency within the group to which the temporary employment agency belongs. This means that in such a transition, the number of weeks worked is continued, and the temporary worker progresses through the phases more quickly.
• In the case of successive employment where the temporary worker transitions to another temporary employment agency to retain their job, the temporary worker retains their legal position in the phase system (same phase and position in that phase), and the employment history (experience in the role) at the previous temporary employment agency is also considered for grading (salary level) and granting periodic increases.

Remuneration
• From September 2, 2019, the allowances in the hirer's remuneration will be expanded to include allowances for physically demanding conditions, such as cold allowance or allowance for working with hazardous substances.
• If temporary workers change temporary employment agencies within the group at the request of the temporary employment agency, they take the experience, based on which they are graded in the salary structure of the client, with them. This means that with that change of temporary employment agency, the same salary and the same prospect of a periodic increase remain.

Changes as of December 30, 2019

Most changes in the collective labor agreements will take place on December 30, 2019. At that time, the two collective labor agreements of the ABU and the NBBU will be completely merged. You can assume that the collective labor agreements will have the same content from that moment on. Additionally, from then on, all temporary workers will have the same employment conditions. The most important changes that will take effect from December 30, 2019, are described below.

Below you will find an overview of the new agreements as a result of harmonization and renewal starting December 30, 2019. Three situations can occur: the agreement changes the arrangement compared to one collective labor agreement, both collective labor agreements, or neither of the collective labor agreements. The latter concerns a purely textual change, as the parties to the collective labor agreement have aimed to make the collective labor agreement more readable and understandable.

Phase System
The phase system is a system where the temporary worker gains more rights and better (dismissal) protection the longer he or she works as a temporary worker. These phases are referred to as phase A/1-2, phase B/3, and phase C/4. Temporary employment agencies can determine which designation they use.

Scope
You have probably already seen some information about the Balanced Labor Market Act (WAB) over the past year. This law, which will take effect on January 1, 2020, aims to narrow the gap between permanent and flexible work. In other words, within the broader objective of the Coalition Agreement, the WAB should make employment more attractive and provide more security to workers. The WAB has significant consequences for all employers and employees in the Netherlands. For both you as an employer and us as HR and recruitment specialists, it is important to be well-prepared for the arrival of this law. The law consists of six important measures. You can read these measures here.

Note: Payroll agreements are excluded from the collective labor agreement for temporary workers that takes effect from December 30, 2019. However, a transitional arrangement for ongoing payroll agreements will be provided on January 1, 2020.

Legal Position
• When temporary workers are in phase A/1-2, they are entitled to a minimum contract duration of 4 weeks. These are consecutive temporary employment contracts without a temporary employment clause for a fixed term. This only applies if the temporary worker continues to work for the same temporary employment agency and for the same client. This counters day and week contracts.
• Additionally, the termination of a temporary employment contract with a temporary employment clause will apply after 26 weeks worked. The notice period for termination will then be 10 days.
• For temporary employment contracts for fixed and indefinite periods, the statutory notice periods apply in case of interim termination.

Remuneration
As described above, the hirer's remuneration will apply to all temporary workers, including all temporary workers with a holiday job. Also, in the case of lending from one client to the next, the hirer's remuneration of the client where the temporary worker is employed applies. This prevents evasion of the collective labor agreement in this area. More changes related to remuneration will take effect on December 30, 2019. We have listed the most important aspects for you below:

• Only people with a distance to the labor market and school leavers without a starting qualification can belong to the allocation group. For them, the hirer's remuneration does not apply, but a different salary structure with periodic increases. However, they receive the allowances, working hours reduction, and expense allowances as applicable at the hirer. Temporary workers in the allocation group receive a periodic increase of 2.25% after 26 weeks.
• Temporary workers in phase C who were granted the ABU remuneration according to the ABU collective labor agreement until December 30, 2019, will switch to hirer's remuneration on that date, with the actual salary remaining at least equal.
• The hirer's remuneration will apply to all holiday workers.
• Temporary workers are entitled to clear information about their remuneration. For example, temporary workers can request more explanation about the remuneration they are entitled to, and the exclusion of salary when there is no work must be documented in writing.
• The element of allowances in the hirer's remuneration is better described, so there is no longer any ambiguity that all allowances for working irregular hours and shifts are included.
• Various salary concepts are used in the collective labor agreement, such as actual salary and salary determined by time, which are more clearly described, and in some situations, this leads to an improvement of the bases within the collective labor agreement. For example, in the case of incapacity for work, this can lead to more salary elements over which the sickness supplement takes place.
• Temporary workers will also receive compensation for work-related travel hours if the client has a scheme for compensating travel hours.
• Temporary workers will receive a periodic increase more quickly if they have worked in (almost) the same role for different clients but through the same temporary employment agency. The work experience is then counted across the clients.
• In the event of work cessation, temporary workers with a temporary employment contract with a wage payment obligation, in principle all temporary workers in phase B/3 and C/4, will be paid 100% of their hourly wage in their last assignment. If they then work for another client, they will receive the hirer's remuneration applicable there. For temporary workers in phase C/4 with a temporary employment contract for an indefinite period, a new, greatly simplified income protection will apply. The salary in a new assignment is the hirer's remuneration applicable there but is always at least 90% of the last earned salary and never less than 85% of the highest earned salary in phase C/4.
• A scheme for continued payment of wages during illness will apply to the entire temporary employment sector. In the first year, the salary will be supplemented to 90% and in the second year to 80%. For temporary workers entitled to AOW, the statutory period (currently 13 weeks) for continued payment of wages during illness applies. For temporary employment contracts for fixed and indefinite periods, it is better described based on how many hours of sick pay must be paid and over which salary elements.
• The holiday allowance will be increased to 8.33%.
• The pension accrual for labor migrants, where there is an exchange of employment conditions, will be improved. Pension will also be accrued over the exchanged salary.
• Allowances for working irregular hours or overtime will be paid directly or reserved in time for compensatory hours in consultation.

Leave Arrangements
• All temporary workers will henceforth be entitled to 25 vacation days. For holiday workers, a different arrangement will continue to apply; they are only entitled to the statutory number of vacation days.
• The allocation of public holidays clarifies when there is a right to continued payment of the public holiday. If it is not clear whether the temporary worker would normally have worked on the public holiday, the consistent work pattern must be considered. This is the case if work has been done on that day on 7 days on which the public holiday falls in the preceding 13 weeks. Rules will be established to prevent the unjustified non-allocation of public holidays. The parties to the collective labor agreement will also conduct research into the allocation of public holidays in practice.
• The special leave arrangement has been changed due to harmonization. Birth leave and leave for taking the professional exam have been added, and the moving day has been removed.

Sustainable Employability
• The existing scheme for training and development will be broadened to a scheme for sustainable employability. An unchanged spending obligation of 1.02% applies to sustainable employability.

As you can see, many changes are coming. The above changes apply from December 30, 2019, to May 31, 2021. Do you want to see the comprehensive collective labor agreement that takes effect from December 30, 2019? Click here.

Source: ABU collective labor agreement for temporary workers