Direct Request (CEACR) - adopted 2020, published 109th ILC session (2021)

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

Other comments on C122

Observation

Direct Request

2020
2016
2001

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The Committee takes note of the supplementary information provided by the Government in light of the decision adopted by the Governing Body at its 338th Session (June 2020). The Committee proceeded with the examination of the application of the Convention on the basis of the supplementary information received from the Government and the Netherlands Trade Union Confederation (FNV) and the National Federation of Christian Trade Unions (CNV), as well as on the basis of the information at its disposal in 2019.

The Committee further notes the observations and the statistical information submitted by the FNV, the CNV and the Trade Union Federation for Professionals (VCP) which were received on 18 August 2019 as well as the observations submitted with the Governments’ report in 2019.

Articles 1–3 of the Convention. Implementation of an active employment policy. The Committee had previously requested the Government to provide information, including statistics on active employment measures adopted and implemented with the participation of the social partners, and their impact in promoting full, productive and sustainable employment. The Committee notes the statistical information provided by the Government concerning the labour market for the period before the COVID-19 outbreak. The Committee notes that in its supplementary report, the Government indicates that the pandemic has hit the labour market hardly. The unemployment rate has increased to 4.5 per cent in July 2020 (419,000 unemployed). Furthermore, the first quarter of 2020 showed a decline of 2.1 per cent in working hours and the first estimates show a historical drop in the GDP of 8.2 per cent in the second quarter of 2020. The Government also provides information concerning the package of measures adopted in consultation with the social partners to contain the economic impact of the outbreak, support enterprises and save jobs. The Committee notes in this regard that the FNV and the CNV welcome the measures taken by the Government to prevent that the COVID-19 pandemic results in an unprecedented increase in bankruptcy and unemployment. The Committee notes that the Government refers in particular to the Temporary Emergency Measure for the Preservation of Jobs (NOW) which provides for a scheme enabling enterprises that expect to lose at least 20 per cent of their turnover to get a subsidy for 90 per cent of wage costs. The Government indicates that 140.000 firms benefitted with subsidies up to €10 billion covering 2.7 million employees with the first version of the NOW while NOW 2, has benefited 63.000 additional firms and 1.3 million employees. Furthermore, in the framework of NOW2, employers are obliged in the framework of the “Netherlands continues to learn” subsidy scheme to help employees to find another job through counselling, training or reskilling efforts. The objective is to facilitate mobility to those sectors where demand for work is higher, such as health care and logistics. The Government has now introduced a phasing out scheme starting in October 2020 where the eligibility requirement for enterprises has risen to a 30 per cent decrease in turnover. A new package (NOW 3) will run until 2021 based on three pillars: support, help adapting to new circumstances and investment. The “Netherlands continues to learn” scheme will also be extended. The Government also refers to the TOZO scheme for self- employed workers and to the TOGS scheme for enterprises in some specific sectors. The TOGS, which is a one-time reimbursement of €4,000, was replaced by the reimbursement of fixed costs for SMEs addressed particularly to enterprises in the sectors of catering, recreation events, fairs and culture. Enterprises receive a tax-free compensation of up to EUR 50,000 to cover their fixed expenses. The Committee highlights the importance of these measures aimed at stabilizing livelihoods and income and restoring an enabling environment for enterprises. The Committee welcomes the fact that these measures have been the object of close collaboration and consultation with the social partners. The Committee requests the Government to continue to provide information on the impact of these measures on the labour market, the challenges and obstacles encountered and the measures taken to address them. The Government is requested to include statistical information on the number and size of enterprises that benefited from these measures (including the number of jobs maintained), as well as statistics on labour market participation, unemployment and underemployment disaggregated by sex and age. Please indicate if these measures were applicable throughout the territory, including the special municipalities of Bonaire, St. Eustatius and Saba.

Employment contracts and new legislation. The Committee further notes that according to the Government’s report, the labour market in the Netherlands is characterized by the high number of people working part-time. In 2018, 48 per cent of the workforce chose to work part-time:75 per cent of women work part time, whereas 75 per cent of men work more than 35 hours per week. The Government also refers to the TOFA, that is a temporary bridging measure for workers in flexible contracts that have been laid off after 1 March with a substantial loss of income. It consisted of a one-off gross payment of €1,650 for the months of March, April and May 2020. The Committee notes however that according to the FNV and the CNV observations those workers with flexible contracts (temporary agency workers and workers with fixed term contracts) have been disadvantaged as they have lost their jobs and their subsidies or insurances have come to an end. The Committee notes in this regard the adoption of the Balance Employment Market Act (Wet Arbedismarkt in Balans) which came into force on 1 January 2020.The law introduces a series of changes to the labour market. In order to foster fixed term contracts over flexible contracts, the law establishes that employers will have to pay a lower unemployment benefit contribution for employees with fixed-term contracts. Furthermore, on-call employees who have worked for an employer for more than 12 months have the right to have a contract with fixed hours. The Committee notes that the employer is obliged to make the worker an offer, in writing or electronically, or a fixed amount of working hours equal to the average number of hours the on-call worker had worked during the previous 12 months. The Act also provides that temporary agency workers (designed as “payroll employees”) are entitled to the same conditions of work with respect to wages, working hours, breaks, overtime, holidays that the user enterprise provides to their direct employees. Furthermore, the Act provides that as of 1 January 2020, a transition payment is mandatory whenever you terminate or fail to renew a temporary contract. The Committee requests the Government to provide information on the implementation in practice of the Balance Employment Market Act (Wet Arbedismarkt in Balans), particularly in the context of the COVID-19 pandemic and to continue to provide statistical information on the types of contract (permanent, fixed term, temporary, full-time or part-time) prevalent in the labour market.

Groups more vulnerable to exclusion from the labour market. Older workers. The Committee notes that in reply to its previous comments, the Government indicates that it has continued to dedicate extra funds to strengthen the position in the labour market of those aged 50 and over. In 2016, the 50-plus Works Action Plan was adopted which includes, but is not limited to, a national promotional campaign aimed at employers, experimental pilot measures to increase the amount of jobs available for workers aged 50 or more, as well as funding for advisory meetings on development persons aged over 45. The Government also offers multiple financial incentives for employers to stimulate the hiring of long term unemployed. For example, employers hiring unemployed older workers (aged 56 and above) receive a bonus (“loonkostenvoordeel”; LKV) of up to €6,000. The Government also (temporarily) offers a no-risk policy to employers, taking on the risk of illness for older workers above 56. The age limit of this no risk insurance has been reduced from 63 to 56 years. These measures aimed at empowering older jobseekers, would be evaluated in the beginning of 2020. At the end of March 2019, 307.000 people were unemployed and 268.000 of them received unemployment benefits, that is 18.2 per cent less than in the previous year. The number of unemployment benefits for people between the age of 45 to 55 and between the age of 55 and up declined relatively faster, respectively 24 per cent and 18.8 per cent less than in the previous years. The Government further indicates that measures should be taken by the social partners to change the increasing wage profiles and the collective agreements that make older workers relatively more expensive. The Committee notes in this regard that the FNV and the CNV refers to the untapped labour market potential of older workers and that the rate of employment of older workers remains below the OECD average. The Committee requests the Government to provide detailed information on the situation, level and trends of employment of older workers particularly in the framework of the COVID-19 pandemic, including information on the impact of the measures adopted to stimulate the labour market and to increase opportunities for decent work for older female and male workers. The Government is requested to provide information on the evaluation of the measures aimed at improving the labour market participation of older workers, planned for 2020.

Youth and ethnic minorities. The Committee had previously requested the Government to provide information on the impact of labour market measures implemented to meet the employment needs of young women and men, particularly those with a migration background as well as on the employment situation of ethnic minorities. The Committee notes that the Government only refers in its 2019 report to the entry into force of the Participation Act applicable to all workers with disabilities that enjoy working capacity which replaces the Young Persons with Disabilities Act (Wajong). The Young Persons with Disabilities Act (Wajong) will only be applicable to those workers without working capacity. In order to foster labour market participation of workers with disabilities, the Participation Act provides that workers which resume work will continue to perceive the disability benefit provided for in the Wajong for an additional period of five years. The Committee takes note however, that in their observations the FNV, the CNV and the VCP refer to the need to ensure an inclusive labour market for young people and ethnic minorities. The FNV, the CNV and the VCP further highlight that migrant workers are facing a very difficult situation due to the pandemic. They live and work in unsafe conditions and are unable to keep social distancing or access personal protection equipment or facilities. Most labour migrants in the Netherlands work in vital sectors such as food supply, distribution, meat and poultry processing, construction, agriculture and logistics. The workload in these sectors is immense and regulations related to social distancing and hygiene precautions are often not enforced at workplaces. The Committee requests the Government to provide information on the measures taken to ensure that the diverse policies and actions taken by the Government to contain the negative impact of the pandemic and improve the labour market situation, also benefits those groups and individuals that have more difficulties to enter and stay in the labour market and which may have been made particularly vulnerable by the outbreak, in particular, young persons, persons belonging to ethnic minorities, persons with disabilities and migrant workers.