Important changes in temporary employment regulations

As of January 2022, concrete changes will be introduced in the temporary employment sector's regulations, partly based on the SER advice. The changes are intended to provide more security to temporary workers. These improvements are being implemented while the CAO negotiations are not yet concluded. Officially, the current CAO expired on June 1, 2021, and it was temporarily extended until September 30, 2021. It has now been extended again until October 1, 2022.

The SER advice issued in June will – in anticipation of the CAO negotiations – be partly implemented as of January 1, 2022. The main changes are as follows:

• An improved pension scheme with higher premiums and a shorter waiting period of 8 weeks instead of the current 26 weeks.
• Shortening the phase A period from 78 to 52 weeks. This allows for faster progression to phase B. Phase B is shortened to a maximum of 3 years.
• Shortening the total temporary employment period (phase A and B) from 5.5 to 4 years.
• Expansion of the Hirer's Remuneration (BRI) with one-time payments and a home working allowance.
• Income guarantee for labor migrants during the first two months in the Netherlands, amounting to at least the full-time minimum (youth) wage, regardless of the contract duration or number of hours worked.
• SFU premium of 0.2% for sustainable employability.
• Possibility to appeal to unemployment benefits if work cannot be performed due to 'unworkable weather' (this has been in effect since October 1, 2021).

Transition arrangement phase A and phase B
For hiring organizations, it is important to consider the impact of the shortening of phase A and the shortening of the total temporary employment period. These changes apply as of January 1, 2022, and a transition arrangement is in place. For temporary workers who, for example, were already employed in phase A on January 3, 2022, the 'old' arrangement of a maximum of 78 weeks in phase A still applies (until January 2, 2023, at the latest). However, the arrangement has several principles and exceptions. We will soon inform our clients in more detail about what the transition arrangement will look like for phase A and B.

Review of the budget memorandum
The budget memorandum also mentions several policy points that will affect temporary workers, employees, and their employers. For flexible work in general, few new rules or explicit policy changes have been proposed, as evidenced by the summary made by the ABU on the 'Key issues budget memorandum 2022'. The changes that the ABU itself implements as of January 1, 2022, therefore remain the most important changes in the field of temporary work for the time being. However, the budget memorandum reveals a change to increase the participation of temporary workers, as well as a tightened policy on reducing labor market discrimination. Additionally, bogus self-employment is mentioned as a theme to be further addressed to create a level playing field for workers. Other changes in the budget memorandum generally relate to improving the position of all workers. For example, a continued payment scheme for parental leave. But also new budgets/funds for training and development for employees, self-employed individuals, and job seekers. Measures are also announced to make it easier for employers to hire people with a work disability.

Continuation
The changing regulations as of January 1, 2022, apply to all ABU/NBBU affiliated temporary employment organizations. Clients of Timing will soon be further informed about the impact of the changes as well as the applicable transition arrangement regarding the new phase system. They will also be informed about the cost price development resulting from the mentioned changes. We continuously monitor developments in the sector, CAO, and negotiations and will continue to proactively inform about them.