The Netherlands – Work and Security Act

On Jan. 1, 2015, the Dutch Work and Security Act went into effect, overhauling rules on temporary employment contracts, employee termination and unemployment benefits, bringing major changes to employers. The reforms include numerous provisions for temporary employment contracts, create a new statutory entitlement to severance pay and reduce the maximum duration of unemployment benefits beginning in 2016. The changes to contract employment aim to close the gap between temporary and permanent employment in the Netherlands, while a new dismissal law aims to make the laws governing termination of employment fairer, simpler and less costly. The maximum duration of unemployment benefits from social security will gradually decrease from 38 months to 24 months between 2016 and 2019.