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Employment law developments for 2024

A new calendar year also brings new employment law changes. This blog briefly explains the main changes from 1 January 2024 and discusses expected changes later in the year.


Changes from 1 January 2024

 

Minimum hourly wage

The main change this year is the implementation of the Minimum Hourly Wage Implementation Act. This law requires employers to pay employees at least the minimum hourly wage. The minimum hourly wage applies to all employees aged 21 and over and amounts to € 13.27. For employees under 21, the minimum youth hourly wage applies. This adjustment prevents an employee working 40 hours a week from receiving a lower minimum hourly wage than an employee working a 36-hour week. Employees whose minimum wage in 2023 was calculated on the basis of more than 36 hours per week will be entitled to a higher salary from 1 January 2024. This implies that collective agreements, working conditions regulations, salary systems and employment contracts will have to be adjusted if this has not already happened.


Indexations

Various fees/amounts are indexed annually. Important indexations as of 1 January 2024 include:

·         The untaxed travel allowance increases from € 0.21 to € 0.23 per kilometre.

·         The untaxed homework allowance goes from € 2.15 to € 2.35.

·         The maximum transitional compensation increases from € 89,000.- to € 94,000.- or to one month's salary if higher than the maximum transitional compensation.


Working expenses scheme

The temporary increase in the work-related costs scheme in 2023 to 3% will be reversed. For 2024, the free allowance under the work-related costs scheme will be 1.92% up to a wage bill of € 400,000.- For the part of the wage bill higher than € 400,000.-, the free allowance will remain 1.18%.


Lowering statutory entry age in pension schemes

The introduction of the Future Pensions Act will lower the statutory entry age into pension schemes from 21 years to 18 years. This means younger workers can start building up their pension earlier. The change applies to all pension schemes. Employees aged between 18 and 21 who have an employment contract on 1 January 2024 must be notified by the employer to the pension fund or pension insurer so that they can participate in the pension scheme. In addition, the new entry age of 18 must be included in the pension scheme, if this has not already been done.


Whistleblower Protection Act for medium-sized employers

From 17 December 2023, the Whistleblower Protection Act will also apply to medium-sized employers (more than 50 employees). This law already applied to large employers (more than 250 employees) since 18 February 2023. This law protects individuals who report breaches of Union law internally or externally within public or private organisations in areas such as safety, transport, environment, and public health.

 

Changes from 1 July 2024

 

CO2 emissions reporting requirement for commuting and business trips

From 1 July 2024, large employers (more than 100 employees) will be obliged to keep track of CO2 emissions from commuting and business trips. These emissions must be reported to the government by 30 June of the following calendar year. This measure precedes the emissions cap for business travel, which is expected to take effect on 1 January 2026.

 

Possible changes in 2024


Bill on monitoring equal opportunities in recruitment and selection

This bill, adopted by the House of Representatives and currently pending before the Senate, requires employers and intermediaries (think temporary employment agency and payroll companies) to take measures to prevent discrimination in the recruitment and selection of new employees.


Bill to make it compulsory to have a confidential counsellor for undesirable behaviour in the workplace

This bill aims to give employees at smaller employers a legal right to access a confidential counsellor. The main elements of the bill are as follows: Employers with at least 10 employees (with an adopted amendment excluding small employers) are required to appoint at least one internal or external confidential counsellor (this can also be done through the trade association or health and safety service). The confidential advisor must (i) have sufficient expertise and experience (attending some form of training is encouraged) and (ii) be able to act independently and autonomously (with the employer facilitating, e.g. by providing budget for a meeting room). By law, the confidential counsellor has certain 'basic' tasks, such as (i) receiving, guiding and advising an employee who is (or has been) affected by unwanted contact, (ii) providing information to employees, and (iii) accounting for the work performed. The law imposes confidentiality on the fiduciary and includes a prohibition on prejudice and termination. This means that the person may not be disadvantaged (e.g. in salary increases, promotions, etc.) and may not be dismissed because of fulfilling the fiduciary position. If present, the works council or staff representative body is given the right to agree to the appointment, extension or termination of the confidential adviser. The bill thus contributes to reducing undesirable behaviour in the workplace and creating a safe working environment for all employees. The bill has already been approved by the House of Representatives and is currently under consideration by the Senate.


Want to know more?

Do you have questions about employment law? Or do you have an employment law dispute? If so, please feel free to contact one of our lawyers.

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