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New redundancy rules will hit older staff

Tuesday 15 January 2013

Plans to reduce golden handshakes and make it easier for companies to sack staff will hit older workers particularly hard, according to the Dutch personnel officers' organisation NVP.

The organisation says it is raising the alarm because it wants to ensure a 'reasonable' approach to redundancy. 'We work for employers but we also see the other side,' NVP board member Andries Bongers told Trouw.

The new measures, which have not yet gone through parliament, are aimed at making the workforce more flexible. However, Bongers says workforces are already extremely flexible and no-one is offered a permanent contract any more.

Limits

Dutch redundancy packages are currently based on length of service, making older workers relatively more expensive to fire. But a planned €75,000 limit on golden handshakes will make it cheaper to get rid of long-term staff.

Seven out of 10 people aged 55 and over who lose their jobs are unemployed for at least a year, according to job centre figures.

The number of older jobless has gone up by 20% over the past year and now stands at over 81,000.

The government is also planning to reduce unemployment benefit to one year, after which the long-term unemployed will have to claim welfare or eat into their assets.

© DutchNews.nl



 

Readers' Comments

Perhaps the unemployment benefits for people above 55 can be extended to more years.

By ufo | 15 January 2013 10:28 AM

Ridiculous idea.
How about lets try and keep people in work, rather than find ways to sack them easier. The older the staff, the more experience, hence the higher wage. Is it a good idea to have just have young people? Where is the business knowledge retention?

By Expatio | 15 January 2013 12:13 PM

All the more reason to fight like hell if you are being threatened at work and you're in this 55+ group, fight with everything you got and in court if necessary.

By B | 15 January 2013 12:36 PM

Once again (let's not forget the pensions scandal)a government tries to steal from the people who have contributed most over the years.

By alan baldwin | 15 January 2013 12:44 PM

Ageism, starts in The Netherlands at 45yrs old, lose you job here in this recession, and you can expect to be out of work for longer than one year, what then, after all of your savings are gone? So, you can expect approximately, 20yrs of safe employment after leaving university. During this period of employment, one must financially provide for a family, save for their education, and save for a pension, as the pension age will no doubt be raised to 70yrs old in the future. All those years of experience and commitment are squandered and it is obvious that the government does not give a damn. People no longer matter? and Bankers are rewarded for their greed with taxpayers money instead?

By Highlander | 15 January 2013 3:29 PM

GOD!!! Where is this country going to? If they are to continue this road it is very clear that,well everyone is doomed. So, Africa make us a place, cause we are going to join you real soon!

By Felix the cat | 15 January 2013 4:29 PM

The CBS has stated that an unemployed person over 55 has only a 15% chance of ever finding a job.
Another study has shown that no matter how much money is thrown at the problem it is not cost effective

At an age when many still have severe financial commitments - and there are permanent contacts any more so you cannot get a mortgage if you are forced to move to get work.

Great plan

By nd | 16 January 2013 9:41 AM

 
 
 
 
 
 
 
 
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