The new government made its government statement in the parliament on Tuesday 4 February. The political coalition agreement contains many measures that will undoubtedly have a profound impact on labour law and HR policy. We limit ourselves here to the reforms with an impact on the labour market (i.e. not pensions or taxation).
Main objectives/themes
We have listed below a selection of the most eye-catching measures by specific objective or theme, to give you an idea of where the government intends to focus. However, the list of measures is longer.
1. Encouraging longer working hours
- Unemployment benefits are time-limited (principle = max 2 years)
- Attention to healthy work-life balance and family situation through the new family credit where each child gets a backpack with leave entitlements integrating existing leave in the context of birth and later care for the child. Existing systems are harmonised.
- Part-time landing jobs for older workers (55 years and above) remain.
- Cessation of new entry into SWT from 31 January 2025, except for medical SWT. However, there would be retention of vested rights for existing SWT and safeguarded access for employees to SWT from companies with intent to restructure before 31 January 2025.
- New is the TeleTRAINwork: the intention is to encourage working during train journeys by better equipping trains and counting hours worked during the train journey.
2. Greater flexibility in working hours
- New possibility to annualise working time by mutual agreement by allowing so-called accordion hourly schedules, with possible time registration. The new arrangement should be in place by 30 June 2025 and that after consultation with social partners.
- Abolish requirement that minimum weekly working hours must be at least 1/3rd of a full-time schedule, but retain ban on working hours of less than 3 hours and on-call contracts.
- Not all hourly schedules need to be included in the work rules insofar as the limits of flexibility are clearly defined.
- Abolition of ban on night work (employment between 8pm and 6am) and abolition of compulsory closing day. Specifically for the distribution sector and e-commerce: night work only starts from midnight, with no loss of purchasing power for workers already working today between 8pm and midnight and with existing premiums retained.
- More voluntary overtime for full-time employees and those working part-time for at least 3 years subject to a written agreement: there would be 360 voluntary overtime hours without motive or catch-up rest, of which for 240 hours gross equals net and no overtime pay is payable.
3. Flexibility on dismissal
- The probationary clause will be reintroduced and that no later than 31 December 2025: notice period of 1 week during first 6 months for both parties.
- So-called rebounce: workers with careers longer than 10 years can resign once during career and receive temporary unemployment benefits.
- Severance pay for new hires will be limited to a maximum of 52 weeks (equivalent to about 17 years of seniority) and number of indemnities for dismissal protection will be limited, although it is not clear whether this is a limitation of the number of dismissal protections or a cumulation of the indemnities for dismissal protection. It is more likely that it refers to the latter.
- Dismissal protection for effectively elected employee representatives of the works council and committee remains unchanged for 4 years. For non-elected candidates, protection goes from 2 years to 6 months.
4. Fewer (long-term) incapacitated and faster return to work
- Prevention of (long-term) incapacity for work by pursuing an active absenteeism policy with employee contact and follow-up.
- Empowering employers and employees to promote reintegration:
- Employers (but not SMEs) pay 30% of sick pay during first two months of primary disability instead of the accountability contribution.
- Employees can be sanctioned (loss of benefits or guaranteed pay) for not or insufficiently cooperating in reintegration process (RIT).
- Reform of legislation around RIT: faster start of RIT (from first day of illness with employee's consent) and procedure medical force majeure (after 6 months instead of 9 months) possible and more involvement of occupational doctor to pursue active reintegration policy.
- Cancellation days without sick certificate are reduced from 3 to 2 per year.
- In case of relapse: only right to guaranteed pay again after 8 weeks (now: 14 days, unless the employee can prove that the disability is due to another illness).
- An employee can request a "preventive" RIT before falling ill, but the employer should not respond.
- Treating doctor can issue fitness certificate (or 'fit note') stating what the employee can still do during the period of illness.
- A digital hotline for suspicious sickness certificates and certificates of incapacity for work will be set up at the SIOD.
5. Impact of wage setting and wage taxation
- The automatic indexation and wage norm will be retained but social partners are asked to develop an opinion on their reform by 31 December 2026.
- The existing collective bonus systems (CLA 90, profit bonus, etc.) will be simplified and the scope will be more harmonised, without additional tax burdens.
- The maximum value of meal vouchers would be increased in two steps by two times EUR 2 in the next legislature (i.e. to EUR 12) and the deductibility of employer expenses would be increased in parallel. All other existing vouchers (eco vouchers, culture vouchers, etc.) will be extinguished.
- There will be a legal framework for flexible pay. Wage exchange will be limited to a maximum of 20% of annual gross pay. Additional bonuses can still be awarded on top of wages. The Employee Participation Act would be flexibilised.
- Ultimately, warrants and stock options are not affected. These instruments retain their (para-)tax treatment, but potentially certain stock options may become less interesting to the extent that the new solidarity contribution (or 'capital gains tax') would apply.
- Employers should systematically offer the mobility budget as an option to employees entitled to company cars. The existing mobility budget is reformed into a mobility budget for all. This starts from the provision by the employer of a budget that can be spent on the car but also on other modes of transport, based on their actual value. The new mobility budget replaces existing arrangements for employer interventions in the commuting and private travel of the employee.
6. (Administrative) simplification and fight against social fraud
- Federal learning account and first job agreement will be abolished.
- Administrative obligations for part-time work are simplified.
- The number of joint committees should decrease by 1 January 2027.
- The fight against social fraud will be strengthened through increased monitoring and cooperation between competent authorities, better information of employers and tougher sanctions.
What you currently need to know and do
The political agreement is obviously important, but has no legal value in itself. It therefore remains to be transposed into legislation, that will need to be adopted under the normal parliamentary procedure. Only then will it become clear what the exact scope of certain measures is, to whom they apply and whether certain exemptions or transitional measures are provided for.
For some measures, the agreement already contains clear deadlines (e.g. 30 June 2025 for admitting accordion hours or 31 December 2025 for reintroducing the trial period). For other measures, this is not the case. For some measures, the initiative is placed primarily with the social partners.
Thus, not all measures will be enacted into law immediately. It is to be expected that the government will probably focus on measures that may yield quick results or have a positive impact on the budget (e.g. more flexibility in working hours, tightening rules around reintegration of disabled workers) or measures that can be enshrined in legislation relatively easily.
Today, we advise you to keep a close eye on current affairs so that you can anticipate certain measures in time, and adjust any processes to be in line with the new legislation (e.g. adjust work rules or other hr documents, implement new hr processes).
Lydian's employment team naturally monitors the legislation in the making.
We will keep you informed in good time and inform you of the necessary action points through e-zines and webinars.
