Application of the European Code of Social Security by the Netherlands 2021
1-7-2020 – 30-6-2021
DETAILED REPORT 2021
The government refers to the Reports of the Netherlands on the application of ILO-Conventions 102, 121, 128 and 130. These reports will be sent to the ILO shortly.
SPECIFIC REQUESTS REGARDING THE NETHERLANDS (2021)
Specific Request 1: Part IV Unemployment Benefit
In its previous conclusions, the Committee noted that to become entitled to the minimum duration of 21 weeks (five months) of unemployment benefit in accordance with Article 24 of the Code, as amended by the Protocol, a person had to fulfil a qualifying period of at least two-and-a-half years of employment. Observing that this was manifestly excessive in terms of Article 23 of the Code, which allows for a qualifying period only insofar as it is necessary to preclude abuse, and the current practice in the majority of the European countries, where the qualifying period normally does not exceed one year of employment, the Committee requested the Netherlands to review its national legislation.
The Committee notes with concern the reply of the Government which indicates that adjusting Dutch legislation to comply with Part IV of the Code is considered neither realistic, nor desirable due to its financial impact, and that the Government is considering denouncing the relevant Part of the Code.
While taking note of the Government’s position on this issue, the Committee of Ministers draws the Government’s attention to Article 81 of the Code, as amended by the Protocol, that permits the denunciation of Parts of the Protocol, without necessarily denouncing the corresponding Part of the Code. Considering that the provisions of the national legislation are found to be in compliance with Articles 23 and 24 of the Code, and partially in compliance with Part IV as amended by the Protocol, the Committee of Ministers hopes that the Government will consider the possibility of maintaining its obligations under Part IV of the Code and Protocol.
Answer
Last year, the government started the process of denouncing of the relevant part of the Code. Adjusting Dutch legislation to comply with part IV of the Code was considered neither realistic, nor desirable.
However, at the beginning of this year the legislative proposal was declared controversial because the cabinet continued to govern in a caretaker capacity until a new government could be installed. The elections took place in March of this year. For this reason, the process of denouncing of the relevant part of the Code has temporarily been suspended. The suspension will at least continue until the new government is installed and it is clear if it wishes to restart the process of denouncing. At the moment of writing this report, no new government was installed yet.
Specific Request 2: Sanctions for misconduct
The Committee notes the Government’s reply in which it refers again to the clarifications provided by a recent ruling of the Centrale Raad van Beroep of 7 November 2018 on section 24 (2) of the Unemployment Insurance Act, in which the Highest Administrative Court of the Netherlands provides guidance on the criteria which need to be taken into account in order to decline an individual’s eligibility to unemployment benefits. While taking note of the ruling, the Committee observes that, while it clarifies the criteria to be taken into account, it does not explicitly state that the misconduct leading to the dismissal had been committed intentionally.
The Committee requests the Government to provide information on cases in which a decision to suspend unemployment benefits on the basis of “recklessness” and “flagrant neglect of duties” was taken and, to the extent possible, the rationale of the administration, or of the administrative body, for making such a decision.
Answer
The response to this request from the Committee is related to the response to the Committee's Direct Request sanctions for misconduct, as formulated by the Committee in the context of the reporting obligation regarding the ILO conventions 102, 128 and 130 (reporting period June 1, 2016 – June 1, 2021). For that reason, the government refers to that answer and the letter that the government sent to the UWV in 2009. After sending this letter, the government has seen no (new) reason to monitor the cases in which a decision to suspend unemployment benefits on the grounds of "recklessness" and "flagrant neglect of duties" has been taken. The current legal framework compels the relevant administrative body (the Dutch Employee Insurance Agency - Uitvoeringsinstituut Werknemersverzekeringen (UWV)) to take such decisions in any case with sufficient guarantees. For example, the law prescribes (among other things) that in these cases it must always be considered whether there is culpability on the part of the benefit recipient. Only if that is the case, UWV can refuse to pay the benefit. This also follows from case law and has been emphasized (again) in the judgment referred to in the previous report (the decision of de Centrale Raad van Beroep of 7 November 2018). UWV is bound by these legal frameworks and the government has no signals that UWV is acting outside these frameworks in its implementation.
Specific Request 3: Part V Old age Pension
With reference to Article 15(3) of the ILO Invalidity, Old-Age and Survivors’ Benefits Convention, 1967 (No. 128) (ratified by the Netherlands), which requires a lower pensionable age for persons who had been engaged in arduous and unhealthy occupations, the Government explains that there is an early retirement scheme only for the Dutch military, but not for other groups of workers. The Committee takes due note of this information. It requests the Government to indicate whether other possibilities for early retirement exist such as a flexible retirement age or transitional pre-retirement benefits.
Answer
There is no flexible retirement age. However, there are different kinds of pensions and benefits that people receive before they get AOW. For example, an early retirement benefit, a partner's pension or a bridging pension. Most notable is an early retirement scheme (RVU or Regeling Vervroegde Uittreding), a scheme of which the purpose is (almost) exclusively to provide for one or more benefits or provisions to bridge the time until the pension commencement date or the AOW.
Specific Request 4 Part XIII Common provisions:
The Committee recalls that Article 70(2) of the Code requires that the total of the insurance contributions borne by the employees protected not exceed 50 per cent of the total of the financial resources allocated to the protection of employees and their dependants. The Committee therefore requests the Government to provide data on the share of the social insurance contributions or social taxes borne by the employees in comparison to the total resources allocated by the different schemes in accordance with the table provided under Article 70 of the report form for the Code.
Answer
|
Insurance |
Worker / inhabitant |
Employer |
Ceiling |
General Tax credit |
|
WIA: disability fund |
0 |
7.03% |
58,311 |
- |
|
Sickness:Work resumption fund |
0 |
Average: 0,58% |
58,311 |
- |
|
WIA: Work resumption fund |
0 up max 1/2 of recoverage of employers contribution |
Average: 0.78% |
58,311 |
- |
|
Unemployment: general unemployment fund |
0 |
7.70% (flex work) 2.70% (non-flex work) |
58,311 |
- |
|
Unemployment: Government implementation fund |
0 |
0.68% |
58,311 |
- |
|
Aow: Old age pension fund |
17.9% |
0 |
35.129 |
2.837 (income 21,034) – 0 (income > 68,507) |
|
Anw: General Surviving Dependents fund |
0.10% |
0 |
35.129 |
2.837 (income 21,034) – 0 (income > 68,507) |
|
Zvw: Health Care fund |
0 5.75% for self employed |
7.00% |
58.311 |
- |
|
WLZ: Long term Care fund |
9.65% |
0 |
35.129 |
2.837 (income 21,034) – 0 (income > 68,507) |
Special temporary measures related to the COVID-19 crisis in the field of
social security
In response to the COVID-19 crisis, the Dutch government has taken measures to protect the jobs and incomes of as many people as possible. A range of emergency financial schemes for employers and self-employed people and also for flex workers are in place.
An overview of the measures can be found on the ILO website via the link below: