The Dutch caretaker government has unveiled a labour market reform package introducing major changes to flexible work arrangements, self-employed insurance, and employee protections. The measures, presented alongside the national budget on Prinsjesdag (17 September), are set to reshape key aspects of Dutch employment law in the coming years. The proposals aim to strengthen safeguards for vulnerable workers while maintaining space for entrepreneurship and adaptable staffing models. An high-over overview of the main proposed changes are included below.
With the general election taking place on 29 October, employers may question how closely they need to monitor these labour reform proposals right now. While the current caretaker government has laid out an ambitious package, it is important to note that these are still only proposals. They must first pass both chambers of parliament and be published in the government gazette before becoming law. As a result, no immediate measures are required from employers at this stage. However, it would be prudent to follow the legislative process closely, as the direction of reform — particularly towards greater worker protection and clearer rules for flexible and self-employed work — is supported across multiple political parties. Even if the specific details change after the election, the general trend towards stronger regulation is unlikely to be reversed. Once the final legislation is approved and a timeline for enforcement is announced, employers will have clarity on when and how to comply. Until then, awareness rather than action is the appropriate strategy.
Zero-Hour contracts and Temporary work
One of the headline reforms is the abolition of zero-hour contracts. Employers will instead be required to offer “bandwidth contracts”, which specify a fixed minimum and maximum number of hours. This model is designed to improve income security and predictability for workers while still giving employers a degree of flexibility. The current practice allowing employers to renew temporary contracts after short breaks will also be scrapped. A minimum interruption period of five years will apply before a new chain of temporary contracts can begin—unless a sectoral collective agreement provides otherwise.
Licensing system for staffing agencies
Another major measure is the introduction of a licensing system for staffing and recruitment agencies under the forthcoming Act on the Admission of the Provision of Workers (WttA).
Expected to take effect in January 2027, with enforcement starting in 2028, this law will require all labour supply agencies to obtain an official license. The goal is to improve compliance with labour standards, reduce exploitation, and ensure that businesses only work with accredited agencies.
Mandatory disability insurance for the self-employed
To address income insecurity among independent professionals, the government plans to introduce a mandatory long-term disability insurance scheme for all self-employed workers. Under the proposal, premiums will be income-based, and benefits will correspond to the statutory minimum wage. Self-employed individuals who already hold comparable private coverage or are insured under the WIA scheme may opt out. The measure is intended to establish a basic social safety net while maintaining entrepreneurial freedom.
Clearer employment status test for freelancers
The long-debated question of employment classification will be clarified through a revised Assessment of Employment Relationships and Legal Presumption Bill (Wet VBAR). The new system introduces a structured test to determine whether a worker qualifies as an employee or a self-employed contractor. Additionally, a legal presumption of employment will apply to anyone earning less than €36 per hour, giving lower-paid freelancers more legal protection.
Adjustments to unemployment and sick leave policies
The planned reduction in the maximum duration of unemployment benefits from 24 to 18 months has been postponed until 2028, as the Dutch Employee Insurance Agency (UWV) indicated it could not implement the change by 2027. The government also intends to simplify the process for care leave by merging short-term and long-term care entitlements into a single category called mantelzorgverlof (informal care leave). This aims to make applications easier and reduce administrative complexity.
New rules for long-term illness and severance compensation
From 2028, the company doctor’s medical opinion will become decisive when assessing reintegration efforts for employees on long-term sick leave. This change seeks to reduce disputes and provide greater certainty for both employers and workers. In addition, as of 1 July 2026, only small employers with fewer than 25 employees will be eligible for government compensation when paying statutory severance to employees dismissed due to long-term incapacity for work. Larger employers will have to bear the full cost themselves.
Strengthening the collective labour agreement (CLA) System
The government also plans to examine how to reinforce the Dutch CLA system, focusing on improving coverage, enforceability, and adaptability in response to labour market fragmentation and the rise of flexible work. Options to enhance the independence of trade unions are also being explored.