Direct Request (CEACR) - adopted 2024, published 113rd ILC session (2025)

Employment Policy Convention, 1964 (No. 122) - Netherlands (Ratification: 1967)

The Committee notes the observations by the National Federation of Christian Trade Unions (CNV) and the Netherlands Trade Union Confederation (FNV), which were received on 30 August 2023, and the response from the Government received on 26 October 2023.

Articles 1 to 3 of the Convention.Labour market trends. The Committee notes the detailed statistical data provided by the Government. The Government indicates that in the first quarter of 2023, the net labour participation rate was 72.7 per cent, up from 70.3 per cent in 2018. The unemployment rate was 3.7 per cent, compared to 4.3 per cent before the pandemic. The Committee also notes that the Government is working on reforming the labour market infrastructure and developing a new measure to preserve employment in case of a crisis. The Committee requests the Government to continue to provide information on the employment policy measures adopted or envisaged, including as regards the envisaged reform of the labour market infrastructure and the measures to preserve employment in case of a crisis. It also requests the Government to provide information on the impact of these measures on the labour market, including statistical data on unemployment and underemployment disaggregated by sex and age.

Developments as regards the implementation of a national employment policy seeking to achieve full, productive and freely chosen employment. The Government indicates that the Balanced Employment Market Act (Wet Arbeidsmarkt in Balans) entered into force on January 1, 2020. The Committee notes that this new law aims to balance the labour market by reducing the gap between permanent and flexible employment. Key components include: (i) Employers can offer up to three fixed-term contracts within 36 months before a permanent contract is required; (ii) The Act introduces cumulative grounds for dismissal, allowing employers to combine multiple reasons for terminating employment; (iii) Employees are entitled to a transition allowance from the first day of employment, including during the probation period; (iv) Employers must provide on-call workers with a fixed number of hours after 12 months of employment; (v) Employees legally employed by a payroll company rather than directly by the company where they work must receive the same employment conditions as those directly employed by the hiring company; and (vi) Differentiated unemployment insurance premiums are based on the type of employment contract, with lower premiums for permanent contracts. The Government notes that two components of the law were postponed due to the COVID-19 pandemic: (i) the requirement for employers to have a fixed-term contract in writing was delayed until 1 July 2020; and (ii) the rule requiring employers to switch from a low benefit contribution to a high benefit contribution if an employee works more than 30 per cent overtime was introduced later, in 2022. The Government indicates that the evaluation report of the Balanced Employment Market Act will be delivered in 2025. The report also provides statistical information on the types of contracts prevalent in the labour market, showing that in the first quarter of 2023, out of a total of 9.7 million workers, 4.7 million worked part-time and 5 million worked full-time. In this context, the recently announced comprehensive package aiming at further reforming the labour market contains 13 new plans to restore the balance between permanent and flexible contracts and the number of self-employed. According to the CNV and FNV, part-time work in the country does not necessarily have to be considered vulnerable work, as it can involve both solid permanent contracts and uncertain flexible contracts.

The Committee takes due note of the above information. It also notes that, according to the Organisation for Economic Cooperation and Development (OECD), the situation of the labour market is tight, with high demand for workers, leading to pressures on employers. Also, skill mismatches are common due to rapid digitalisation and automation and the ageing of the population is affecting labour supply, with many workers retiring. Additionally, job security is affected by the rise in non-standard work, such as gig and part-time jobs. Finally, the transitions to a low-carbon economy and increased digitalisation present both challenges and opportunities (Lifting labour supply to tackle tightness in the Netherlands, 2023, OECD Working Papers No.1771). In view of the above information, the Committee requests the Government to continue to provide information on the implementation in practice of the Balanced Employment Market Act (Wet Arbeidsmarkt in Balans), including its evaluation report to be delivered in 2025, and to continue to provide statistical information on the types of contracts and to indicate the coordinated efforts deployed to enhance skills, improve job matching, and support diverse groups in the labour market.

Older workers. The Government indicates that the employment rate among people between 55 and 75 years old has continuously increased to reach 47.8 per cent in 2022 (compared to 42.4 per cent in 2018). The Government stresses that the increase in the state pension age and the abolition of early retirement schemes have influenced the rising participation of older persons in the labour market. The Government adds that the COVID-19 pandemic does not seem to have affected the labour participation rate of older people. The 50+ Works Action Plan introduced in 2016, with actions to strengthen the position of workers of 50+years on the labour market, was evaluated in 2020. The Government points out in this respect that different actions of that plan were evaluated as having a positive effect in contributing to a better position of this group in the labour market. The Government further indicates that in 2022, it launched the Seniors Vision (SKV) to improve the position of workers 55 years and older in the labour market and developed based on the lessons learnt from the 50+ Works Action Plan. The Committee notes the observation by CNV and FNV that the over 55s are still relatively more often long-term unemployed and that in 2022, almost half of the unemployed over 55s were long-term unemployed. The Committee requests the Government to continue to provide detailed information on the measures adopted or envisaged to stimulate the labour market and to increase opportunities for decent work for older female and male workers. It requests the Government to provide information on the impact of these measures, including the Seniors Vision (SKV) programme launched in 2022, and statistical data covering the situation, level and trends of employment of older workers. The Government’s attention is also drawn to the Older Workers Recommendation, 1980 (No.162).

Persons with disabilities. The Government indicates that the law concerning the execution of the Broad Offensive to increase the employment rate of workers with disabilities was adopted in 2022. The Government adds that there is also an agreement between the trade unions and employer organisations with the Government, which entails that if employers do not succeed in realising the agreed number of jobs for workers with a disability, a mandatory quota will be introduced. The Committee notes that the United Nations (UN) Committee on the Rights of Persons with Disabilities (CRPD), in its concluding observations on the initial report of the Netherlands, expressed concerns about: (a) the high incidence of unemployment among persons with disabilities, in particular women with disabilities and young persons with disabilities, as well as the continued discrimination in payment mechanisms for persons with disabilities with “reduced work capacity”; (b) the discrimination and barriers that persons with disabilities face in their employment, including denial of reasonable accommodation and the lack of measures to ensure the accountability of employers in the public and private sectors for not respecting the targets for employment of persons with disabilities; (c) the use of the term “occupational disability” to refer to persons with disabilities; and (d) the continued use of the medical model to promote the employment agenda for persons with disabilities as evidenced in the use of sheltered workshops as a mean of employing persons with disabilities (document CRPD/C/NLD/CO/1, dated 5 September 2024, paragraph 59). The Committee requests the Government to provide detailed information on the measures adopted to stimulate the labour market and to increase opportunities for decent work for persons with disabilities in the open labour market. It requests the Government to provide information on the impact of these measures, including the law concerning the execution of the Broad Offensive, and statistical data covering the situation, level and trends of employment of persons with disabilities.

Youth, ethnic minorities, and migrant workers. The Committee notes the information provided by the Government concerning the employment of young persons. The Government indicates that young people were severely affected by the COVID-19 pandemic, with youth unemployment rising to 11 per cent in August 2020. During the pandemic, the “Approach Against Youth Unemployment” (Aanpak Jeugdwerkloosheid) was implemented, which included a regional approach to youth unemployment and resources for schools and municipalities to help vulnerable school-leavers start well in the labour market. The Government is working on making the temporary measures from this approach permanent. The Committee also notes the information provided by the Government concerning EU migrants in the Netherlands. In 2020, Labour Migrants Protection Taskforce presented a report titled “Not Second-Class Citizens” (Geen Tweederangsburgers), detailing the living and working conditions of EU migrant workers. The Taskforce made about fifty recommendations to improve these conditions, which the Government is urgently implementing. One recommendation is to establish a compulsory certification system for foreign temporary employment agencies operating in the Netherlands. The CNV and FNV observed that many migrant workers lost their housing and health insurance when they lost their jobs during the pandemic and that low remuneration remains an issue. They also noted the absence of a bill to create a level playing field for employment agencies. In response, the Government sent a revised version of the Bill for the amendment of the Act on the Allocation of Workers by Intermediaries to the House of Representatives in October 2023.

Regarding ethnic minorities and non-EU migrants, the Government indicates that these groups generally have lower labour participation and are often overqualified for their positions. The “For an Inclusive Labour Market” (Voor een Inclusieve Arbeidsmarkt) program includes several policy measures to ensure that migrant workers can achieve equal labour market positions as non-migrant workers. Municipalities, the Employee Insurance Agency (UWV), employers’ organisations, the temporary employment sector, and the Government have committed to guiding more migrant workers toward employment. Status holders were particularly vulnerable during the COVID-19 crisis, facing risks such as social isolation and structural poverty. The Government has published the “Status holders to Work” approach, prioritizing the enhancement of their labour market position. The Committee notes that the UN Committee on the Elimination of Racial Discrimination (CERD), in its concluding observations on the combined twenty-second to twenty-fourth periodic reports of the Kingdom of the Netherlands, expressed concerns about ongoing discrimination against students with ethnic minority or immigrant backgrounds in obtaining internships, which negatively impacts their future labour market prospects. People with immigrant backgrounds continue to face employment discrimination, and a bill requiring companies to adopt a recruitment and selection policy to eliminate racial bias has not yet been adopted. Minorities continue to face racial discrimination in many areas, including employment, housing, education, health, and social care. The social inclusion of Roma, Sinti, and Travellers also lags behind in employment, education, and housing (document CERD/C/NLD/CO/22-24, dated 16 November 2021, paragraphs 19, 21, 25 and 31). The Committee also notes that the UN Committee on the Rights of the Child (CRC), in its concluding observations on the combined fifth and sixth periodic reports of the Kingdom of the Netherlands, recommended that the Netherlands improve the collection and analysis of data on discrimination against children, including child poverty, child labour, and violence against children, including sexual exploitation, abuse, and trafficking. The CRC also urged the Netherlands to continue examining and adapting its legislative framework to ensure the legal accountability of business enterprises and their subsidiaries operating in or managed from the State party’s territory, in relation to international and national human rights, labour, environmental, and other standards (document CRC/C/NLD/CO/5-6, dated 9 March 2022, paragraphs 9 and 13). In view of the above, the Committee requests the Government to continue to provide information on the measures taken or envisaged to ensure that the implementation of an active employment policy also benefits the above groups and individuals that have more difficulties to enter and stay in the labour market, in particular, young persons, persons belonging to ethnic minorities, and migrant workers.

Impact of the measures adopted to face the COVID pandemic. The Committee takes note of the information provided by the Government in response to its previous comments on the impact of the measures adopted to face the COVID-19 pandemic on the labour market. The Government indicates that the most important measure was the temporary Emergency Measure for the Preservation of Jobs (NOW), which provided a scheme enabling enterprises to get a subsidy on wage costs. The Government highlights that the NOW ran for eight rounds, from March 2020 to March 2022, and that while the basic idea remained the same, the specific parameters differed between rounds. The Government points out that an obstacle to the implementation of the NOW was that the measure was generic, and it was not possible to focus on specific sectors. The Government considers that it is not possible to estimate how many jobs were preserved because of the NOW since the same worker could apply for different rounds, but it points out that in the eight rounds, 498,400 companies benefited and that the subsidies covered the wages of 9.1 million workers. The Government also indicates that self-employed persons could apply for the Temporary Scheme for Self-Employed (TOZO). The TOZO was operational from March 2020 to September 2021 in five rounds, and during that period, there were 512,930 beneficiaries. After that, from October 2021 to March 2022, self-employed could receive income support under a simplified version of the Assistance for Self-Employed (BBZ). The Government explains that in the first part of the crisis, up until July 2020, workers with a flexible contract without entitlement for unemployment insurance were not eligible for the NOW, but they could request the Temporary Bridging Measure for Flexible Workers (TOFA). The Government further explains that employees or self-employed who were unemployed were able to benefit from support to find new work and that Regional Mobility Centres (RMT) offered extra support. The Government indicates that people who had a sharp decline in income and could not pay their necessary fixed expenses for living, such as housing, could request the Temporary Support Necessary Costs (TONK). The Government also asserts that the measures taken in response to the pandemic in the longer term kept workers in their current jobs while they might be more effective in other jobs but the CNV and FNV maintain that there is no real evidence for this last assertion.