Employment in the Netherlands; IDS International Employment Guide 2010

The credit crisis has initially had a muted impact on unemployment levels, partly a result of measures to allow firms to apply for part-time unemployment benefit for some of their employees which took effect in April 2009. However, unemployment is expected to rise from 5% in 2009 to 8% in 2010, as the economy moves sluggishly out of recession. There has been some negative impact on wage growth, albeit with a time lag in 2009, and pay rises have decelerated markedly during 2009. Other key recent initiatives are: Possible lower severance payments, following new arrangements agreed by Cantonal Courts Clarification of use of formulae for compensation for unlawful dismissal by the Supreme Court in November 2009 Measures to promote labour force participation of young and older employees, with proposals under consideration to allow employees under 27 to be hired for 48 months (instead of 36) on temporary contracts A bill to raise retirement age to 67 - which has prompted trade union opposition and could endanger future wage moderation agreements Temporary scope to depart from the statutory criteria for selection in the event of collective redundancies to enable companies to retain key staff Financial compensation for employers who hire "older" workers who go on long-term sick leave