The Dutch cabinet aims to implement a major reform of the labor market. Minister Van Hijum of Social Affairs and Employment has presented a legislative proposal designed to restore the balance between flexibility and security in employment. The core of the proposal: more permanent contracts and better protection for flexible workers.
From flexible to permanent: a shift in labor market policy
Currently, 43 percent of workers in the Netherlands are employed under insecure contracts. Van Hijum aims to reduce that figure to the European average of around 20 percent. “We’ve gone too far with flexibility,” the minister stated. “For some companies, insecure labor has become a business model. That must be reversed.”
The proposed legislation includes strong measures. Employers will be encouraged to offer permanent contracts more quickly. A key change is the tackling of so-called revolving door constructions. At present, an employer may offer a worker three consecutive temporary contracts, after which a six-month break is required before a new temporary contract can be offered. This “cooling-off period” will be extended to five years. The goal is to provide workers with permanent contracts sooner and reduce long-term insecurity.
Abolishing zero-hour contracts and introducing bandwidth contracts
Another major component of the proposal is the ban on zero-hour contracts. This form of contract will disappear for most workers and be replaced by so-called bandwidth contracts. In such contracts, a minimum and maximum number of working hours are agreed upon, with a maximum bandwidth of 130 percent. For example, someone with a minimum of 16 hours per week may be deployed for a maximum of 20.8 hours. The minimum number of hours is always paid.
Exceptions will remain for young people, school pupils, and students, who either need or can manage greater flexibility. According to Van Hijum, the new system still provides employers with sufficient flexibility, while significantly improving workers’ income security. “On-call workers are currently the most vulnerable to poverty, even if they have a job. That’s something we must fix.”
Equal rights for temporary agency workers
The proposal also ensures that temporary agency workers will be entitled to the same employment conditions as regular employees in comparable roles. The minister hopes this will put an end to practices where workers are systematically hired through staffing agencies at lower cost and with less security.
Addressing labor market inequality and poverty risks
Minister Van Hijum expressed concern over the growing divide in the labor market. “Whether or not you have a permanent contract determines not just your income, but also whether you’re insured against unemployment, whether you build up pension rights, and whether you have access to training opportunities. Without job security, people are more vulnerable and more susceptible to poverty.”
According to Van Hijum, a portion of the Dutch economic model currently relies on these vulnerable groups. “That’s socially unsustainable.”
Reactions from the business community
Entrepreneurs and employers’ organizations are critical of the plan to abolish zero-hour contracts. They fear losing flexibility, especially in sectors where demand and supply can fluctuate sharply. Van Hijum acknowledges these concerns but emphasizes that bandwidth contracts still allow for variability. He is also working on measures to make permanent contracts more attractive for employers, such as easing the obligation to continue paying wages during employee sickness.
Expected implementation: 2027
The bill titled “More Security for Flexible Workers” is not yet finalized, but little debate is expected in the House of Representatives regarding its content. It builds on the recommendations of the Borstlap Committee and earlier advice from the Social and Economic Council. If both Houses of Parliament approve, the law is expected to come into effect in 2027.
“With this bill, we directly increase people’s income security. And we make it harder to exploit workers through revolving door or temporary agency constructions,” said Van Hijum.
