Employment law update Summer 2025: More security for flex workers, AI literacy of workers and other (upcoming) amendments

In this blog, we highlight the most significant current topics, recent legislative changes, notable case law, and the latest state of affairs regarding the ongoing debate surrounding (pseudo) self-employment.

Items reviewed in this article:

I. Changes as of 01 July 2025

1. Indexation of minimum wage

II. Main legislative developments

1. Prepare for the Gender Pay Transparency Directive Implementation Act (Wet implementatie Richtlijn loontransparantie).

2. Provision of Personnel Admissions Act (Wet terbeschikkingstelling uitzendkrachten) sent to the Senate.

3. More Security for Flex Workers Act (Wet meer zekerheid flexwerkers) sent to the House of Representatives.

4. AI literacy for employees mandatory as of 02 February 2025.

III. Case law

1. Do copyrights still belong to the employer?

IV. Latest updates on the topic of (pseudo) self-employment

1. Entrepreneurship full-fledged criterion in assessing self-employment.

2. Self-employment Act in consultation as an alternative to the Act on Clarifying Assessment of Employment Relationships (Wet verduidelijking beoordeling arbeidsrelaties en rechtsvermoeden).

I. Changes as of 01 July 2025

1. Indexation of minimum wage

As of 01 July 2025, the statutory minimum wage has been increased by 2.42%. The minimum wage for employees aged 21 and over is now EUR 14.40 gross per hour (which previously was EUR 14.06 gross as of 01 January 2025).

Check the gross amounts for the minimum hourly wage by age on the central government website (Rijksoverheid.nl).

II. Main legislative developments

1. Prepare for the Gender Pay Transparency Directive Implementation Act (Wet implementatie Richtlijn loontransparantie).

Earlier this year, the Gender Pay Transparency Directive Implementation Bill went into consultation. The bill implements European legislation and aims to promote equal pay and combat wage discrimination. The law is going to have a major impact on employers' remuneration policies.

The main proposed changes:

• Ban on questions about salary history during job applications;

• Right for employees to be informed about average salaries of colleagues in similar positions;

• Employer obligation to set objective pay criteria (skills, effort) not based on gender;

• Reporting requirement: annually for >250 employees, triennially for >100 employees; and

• Extension of the right of consent of the Works Council.

The law is likely to be debated in the House of Representatives in the autumn of 2025 and is expected to enter into force in 2026. In the meantime, employers are urged to prepare well, including by mapping out pay differences.

2. Provision of Personnel Admissions Act (Wet terbeschikkingstelling uitzendkrachten) sent to Senate

The House of Representatives has approved the Provision of Personnel Admissions Act (Wet toelating terbeschikkingstelling uitzendkrachten). This act introduces a compulsory admissions system for temporary employment agencies and aims to address malpractices in the temporary employment agency sector. The compulsory admission will apply to all companies that provide labour on a professional basis, such as employment agencies, consultancy firms, secondment agencies, etc. For more information on the main measures, read our blog.

The Senate has now begun deliberations on the proposal, which has been met with considerable criticism. Notably, the Farmer–Citizen Movement – BoerBurgerBeweging (BBB) – has voiced concerns, describing the proposed law as “disproportionate” and ‘ineffective”. It therefore remains uncertain whether the bill will ultimately secure approval.

3. More Security for Flex Workers Act (Wet meer zekerheid flexwerkers) sent to House of Representatives

On 19 May 2025, the More Security for Flex Workers Act (Wet meer zekerheid flexwerkers) was presented to the House of Representatives. This proposal is part of a broader reform of the Dutch labour market (the “labour market package”) and aims to strengthen the legal position of flex workers.

The main measures include:

On-call contracts

• Abolition of zero-hours contracts;

• Introduction of bandwidth contracts with a maximum variation of 30%;

• Mandatory payment of a minimum number of guaranteed hours, regardless of actual deployment;

• Exclusion from salary continuation obligation will no longer be allowed; and

• Exceptions for minors, pupils, and students.

Chain provision

• Extension of the interval between two chains of temporary contracts, from 6 to 60 months;

• Abolition of the possibility to deviate from the number and duration of contracts by collective agreements; and

• Exceptions remain possible for students, school children, and workers involved in recurring temporary work such as seasonal work.

Temporary agency work employment contracts

• Limitation of the maximum duration of temporary agency contracts to three years;

• Shortening of Phase A from 78 to 52 weeks;

• In Phase B, a maximum of six contracts in two years (previously four years);

• Right to a permanent contract with the temporary agency after three years; and

• Equal working conditions for temporary agency workers, including remuneration and other conditions, at least equivalent to those of permanent employees at the hirer.

The intended date of implementation, if passed, is 01 January 2027. However, the equal pay component for temporary workers may come into force a year earlier, on 01 January 2026, to align with the new collective bargaining agreement in the temporary agency sector.

4. AI literacy workers mandatory from 02 February 2025

On 01 August 2024, the European Artificial Intelligence Act (AI Act) entered into force. This regulation introduced a range of obligations for organisations that develop, deploy, or use AI systems. These obligations will be phased in over time.

For example, as of 02 February 2025, organisations are required to ensure the AI literacy of their employees. AI literacy means that employees who interact with AI systems must have a clear understanding of what AI is, how it works, what potential impacts AI may have, and how to use such systems safely, ethically, and responsibly.

If employees are not (sufficiently) AI literate, the organisation not only risks regulatory sanctions, such as fines, but also faces the possibility of reputational harm or inadvertent discriminatory outcomes.

We propose the following roadmap:

1. Map all AI systems used within the organisation;

2. Assess the current knowledge and skills of employees regarding the AI systems they use;

3. For each employee involved, identify the knowledge and tools required for AI literacy in their position;

4. Offer appropriate training courses and ensure employees have time and opportunity to attend them during working hours; and

5. Evaluate annually whether the level of AI literacy remains sufficient.

Note: Involve the works council (ondernemingsraad). The introduction of a scheme that covers staff training is subject to the works council’s right to consent.

See the Personal Data Authority’s website for more information on the AI Act and timeline for implementation (under the heading Quick Answers).

III. Case law

1. Do copyrights still belong to the employer?

On 06 March 2025, the European Court of Justice (ECJ) delivered a significant judgment concerning so-called neighbouring rights. This decision may also have far-reaching implications for copyright ownership to products created in the course of employment.

In light of this, we strongly recommend including a standard provision in employment contracts whereby employees expressly assign to the employer all copyrights to products they create during their employment. This is particularly crucial for roles involving the creation of intellectual or creative products, such as software developers, graphic designers, marketing and communications professionals, R&D staff, and similar positions.

For further information and background, please refer to our blog on this subject.

IV. Latest updates on the topic of (pseudo) self-employment

In recent years, the Dutch legislature has made it a priority to address the issue of false self-employment in the Netherlands. False or pseudo self-employment arises when an individual is formally engaged as a self-employed contractor, yet in practice performs work under the direction and supervision of the client, effectively functioning as an employee.

This situation can have adverse consequences for both the worker and the client. The worker may not enjoy the same rights and protections as an employee, while the client faces the risk of retroactive assessments and penalties. As a result, this topic has remained at the forefront of public and legislative debate for several years.

In our previous newsletters (June 2024 and December 2024), we discussed the lifting of the Tax Administration’s enforcement moratorium under the Deregulation of Assessment of Employment Relations Act (DBA) and the proposed Act on Clarifying Assessment of Employment Relationships (Wet verduidelijking beoordeling arbeidsrelaties en rechtsvermoeden), also known as the Vbar Act.

Since then, the following developments have taken place:

1. Entrepreneurship full-fledged criterion when assessing false self-employment and amendment to the Vbar Act

On 21 February 2025, the Dutch Supreme Court clarified the criteria for qualifying an employment contract. Building on its earlier Deliveroo judgment, the Court reaffirmed that all circumstances of the case are of equal relevance in assessing whether someone qualifies as an employee or a self-employed person, including whether the worker acts as an entrepreneur (“entrepreneurship”).

The Court specifically held that external indicators of entrepreneurship – such as having multiple clients, Chamber of Commerce registration, business investments, or a personal website – are relevant, and that “entrepreneurship” is as equally important as the other factors; there is no formal hierarchy among the criteria.

Following this ruling, the Minister announced on 27 March 2025 that the proposed Vbar Act would be amended. The proposal awarded the criterion of “entrepreneurship” a subordinate role, only considering it in cases of doubt.

The amended proposal was sent to the House of Representatives on 07 July 2025. Please refer to our blog for more information.

2. Self-employment Act (Zelfstandigenwet) in consultation

Meanwhile, on 03 April 2025, MPs from several Dutch political parties jointly presented the proposal for the Self-employment Act (Zelfstandigenwet), as an alternative to the Vbar Act. According to the submitters, the Vbar Act does not provide sufficient certainty in determining in advance whether there is false self-employment. The proposal introduces a “self-employment test” and a “working relationship test”. If both are met, there is actual self-employment.

The conditions from the self-employment test are:

• Working for one’s own account and risk;

• Keeping proper records;

• Behaving in the course of business as an independent entrepreneur;

• Having made adequate provision against the risk of disability; and

• Having a proportional contribution for a provision at retirement.

The conditions from the working relationship test are:

• There is freedom of organisation of work;

• There is freedom of organisation of working time;

• There is no hierarchical control; and

• The parties intend to perform work other than under an employment contract.

The criterion of “embedding” the work within the organisation does not play a role in the proposal, whereas it does play an important role in the Vbar Act. According to the submitters, this criterion in particular creates a lot of ambiguity in the Vbar Act.

The proposal was submitted for consultation and the consultation ended on 23 June 2025. The proposal is expected to be sent to the House of Representatives in the coming fall.

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