Employment law in 2025: What might be changing?

A new year means new legislation. In this article, GMW Lawyers round up what changes you can expect in 2025, and how you can prepare for them.

After a hopefully relaxing and safe year-end, it is time to look ahead to what 2025 is going to bring us on employment law matters. Many of the changes are still being deliberated, but it always pays to be prepared as early as possible for any potential changes to Dutch employment legislation.

Non-compete clause

Contrary to how it appeared last year, 2025 will not bring any changes to the legal regulation of the non-compete/non-solicitation clause. This means there is no mandatory justification for the necessity of the non-compete clause in permanent contracts and no compensation obligation when invoking the non-compete clause. The non-compete clause in an indefinite employment contract becomes valid if it is agreed upon in writing with an adult employee (anyone aged 18 or over). Always seek advice before signing a non-compete and/or non-solicitation clause.

Freelancers

The criteria for determining whether someone is an employee or a freelancer (ZZP) remain the same for now. This means that a freelancer on paper can, in practice, still be an employee. For example, if they perform the same work as employees employed by the company and the company has control over how they perform their work. The law that the government claims will provide clarification will not be introduced before January 1, 2026. Meanwhile, the Dutch government has announced that it will start enforcing "false self-employment" checks from January 1, 2025.

Law to restrict flexible employment

Another bill under discussion aims to restrict flexible employment by banning zero-hour contracts and adjusting the chain regulation. The chain regulation currently ensures that after three temporary employment contracts or after two temporary employment contracts with a total duration of three years, a permanent contract automatically arises. A break of six months currently interrupts this chain regulation. The proposal is to extend this six-month period to five years. However, the chain regulation will remain unchanged in 2025.

Reintegration after illness

Finally, a law on the reintegration of sick employees in the second year of illness is under discussion. Currently, the employer must continue to investigate whether a return to the original position, or at least within the company, is possible throughout the entire illness period. The proposed law would allow for an agreement that after the first year of illness, the focus will be entirely on reintegration outside the current employer. This option is only available to employers with up to 100 employees. This proposal has received much criticism, so it remains to be seen whether it will actually come into force in its current form.

Equal pay for men and women

The European Union has adopted a directive that prohibits discrimination in pay between men and women in equivalent positions, unless there is an objective justification. This law must be transposed into Dutch law by June 2026. The law will require employers to provide employees with more insight into salaries and how they are determined, so that employees can better assess whether they are being paid equally. Employers will therefore be required to provide information about the (starting) salary or pay scale of the position before hiring. This salary must be based on objective and gender-neutral criteria.

Additionally, there will be a ban on asking an applicant about their (previous) salary with another employer. This prevents wage discrimination from carrying over into future employment relationships. During the employment period, employers will also be required to provide information on request about the average pay levels of equivalent employees, broken down by gender.

Plenty to prepare for

In conclusion, while 2025 will not yet bring the anticipated changes in employment legislation, it is crucial for both employers and employees to stay informed. The evolving landscape of employment law underscores the importance of understanding your rights and obligations, ensuring fair and equitable treatment in the workplace. As we proceed in 2025, let’s strive for a balanced and just work environment for all.

Do you have a question regarding this article or about employment in the Netherlands in general? GMW Lawyers has a history of advising and assisting expats with Dutch laws. Contact them today by calling +31 (0)70 2171935 or by emailing info@gmw.nl.