Measures are needed to limit the negative effects of flexible work contracts, says the government’s macro-economic forecasting agency CPB in a report out on Thursday.
People on flexible contracts generally enjoy lower job and income security, causing greater inequality, the agency writes.
Possible solutions to the problem could be more rules surrounding flexible work, or minimising the differences between the costs and risks involved in the different employment relationships.
However, more rules to protect flex workers would not increase the number of fixed contracts as the financial advantage of employing people on flexible contracts would still be in place, the agency warns.
The CPB suggests a ‘more sober’ version of the job protection and social security that workers on permanent contracts are presently enjoying. This will reduce the difference in costs and risks for employers which will create jobs and increase the number of fixed contracts on the lower end of the employment scale.
Another variant would be to work towards a broad system of uniform schemes for disability, pension and training. Because all workers would be covered by these schemes the differences between different employment relationships would likewise become smaller.
Six in 10 workers in the Netherlands now have a permanent compared to seven in 10 a decade ago.
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