Alterations in the WW

Since July 1st 2015 there were a few alterations in the law, which have direct consequences for the Unemployment Insurance Act. The most important alterations will be discussed step by step in this article so you will be completely up to date and you know what you need to take into account from now on.

Entry requirements Unemployment Insurance Act

What is known meanwhile, is that when an employee wants to qualify for an unemployment benefit he needs to have a loss of working hours of at least 5 hours a week or more than half of his average working hours a week. He also needs to be available for paid work. The employee can furthermore not be culpable unemployed and therefore can’t resign and may also not become unemployed as effect of a culpable pressing reason (instant dismissal).

Termination agreement

Conclude a termination agreement together is possible, if the correct wording for this has been chosen. Always check this with a lawyer because this can make a difference between qualifying and not qualifying for an unemployment benefit. That you need to take into account the fictitious notice period in a settlement agreement was already known. On this point the law has been modified a bit. Since January 1st 2016 this problem is regulated through a ground for exclusion in article 9:3 Unemployment Insurance Act, which states that during the (fictitious) notice period the right to unemployment benefit is excluded.

Consequences (whether or not) application of the fictitious notice period

Before January 1st 2016 an employee didn’t qualify either during the (fictitious) notice period. Thereby the right to unemployment benefit however already started, but the employee wasn’t entitled to the actual benefit. This shortened the total extent of the unemployment benefit. This has changed since January 1st 2016. During the (fictitious) notice period the right to unemployment benefit is excluded. This means that this right only starts after the expiration of the notice period. Therefore you don’t lose any right to unemployment benefit, but unemployment benefit just starts later.

Term suitable employment

Another modification is that the term suitable employment of article 24 Unemployment Insurance Act has been altered. It has been sharpened. There has to be settled sooner for “less”. In the first 6 months of unemployment it applies that suitable employment needs to connect as much as possible with the work out of which one went unemployed. There may be connected to one’s own education-/wage level. The travel time may not be more than 2 hours a day till 6 months as well, will it count as suitable employment.

After 6 months settle for (a lot) less

After 6 months the employee cannot exercise any more rights to the old education-/wage level. Work below the education-/wage level will be considered suitable. The travel time is being stretched as well. A maximal travel time of 3 hours is considered reasonable and under circumstances the employee can even be asked to move. For these types of situations is does however count that there are exceptions in situations in which it wouldn’t be acceptable because of social, mental or physical reasons. These could be in particular personal situations such as physical and mental state, family situation etc.

Income deduction: 70% instead of 100%

At the area of income deduction there is some good news. Say an employee finds work during his unemployment benefit; formerly this meant that the income would be deducted entirely of the unemployment benefit. This however proved to b not stimulating for people to find work. That’s why the legislature adjusted this. As of January 1st 2016 this doesn’t count for the entire income, but only for 70% of that, which is being deducted on the unemployment benefit. Therefore employment pays off for 30%. This applies till the moment when you make at least 87,5% of the former income. At that moment you are deemed to being not unemployed anymore and therefore will the unemployment benefit expire.

Shortening of the duration: 38 to 24 months maximum

The duration of the unemployment benefit has been shortened considerably. As of January 1st 2016 the maximal duration is being reduced step by step from a maximum of 38 months to 24 months. This last will be realised by April 1st 2019. Per quarter the maximum unemployment benefit is being reduced by 1 month until the reduction to 24 months is achieved. Existing unemployment benefit rights are being respected.

Unemployment benefit and temporary contracts: the importance of the interim termination clause

Lastly I want to point out the unemployment benefit in temporary contracts. New as well in the law is that there is no more right to an unemployment benefit when a temporary contract without an interim termination clause is being terminated before the end of the contract. This applies during the remaining duration of the contract.

Say you and your employer get into a conflict and you decide to terminate a temporary contract, which only ends in some time earlier by mutual agreement. Earlier on I mentioned that a settlement agreement with the proper wording would suffice in such a case, this doesn’t apply to an employment contract for a definite period without an interim termination clause. Such a clause implies that an employment contract for a definite period can be terminated interim taking into account a notice period.

Such a interim termination clause is important in particular for employees. Take this into account when drawing up an employment contract. However if you didn’t do this and you want to figure this out together by consultation, then it could be wise to (in the right way) interim agree to an interim termination clause.

Questions?

Do you have any further questions relating to previous alterations, or do you want help in drafting employment contracts and/or settlement agreements in which the previous is taken into account, please contact mr. Suzanne Dijsseldonk of SMART Advocaten.