Are you ready for the new rules on flexible work in 2028?

The end of zero-hours contracts

One of the most significant changes is the abolition of zero-hours contracts. For many employees, the current on-call contract will be replaced by a so-called bandwidth contract. A minimum and maximum number of hours must be agreed in advance. The maximum may not be more than 30% higher than the minimum.

For example, an employee with a contract for 20 hours per week may be scheduled for no more than 26 hours. The employee may refuse a call to work hours above that limit. In addition, where an employee structurally works additional hours, the employer must ultimately offer a contract that better reflects the actual working hours.

For organisations that rely heavily on a flexible workforce, such as those in retail, hospitality, logistics and healthcare, this will have direct consequences for workforce planning.

Stricter rules for fixed-term contracts

The rules governing successive fixed-term contracts will also be tightened. At present, after three fixed-term contracts, a new chain can begin if there is a break of more than six months between the contracts.

From 2028, this interruption period will be extended to three years. This means that, in principle, after three fixed-term contracts an employee may only be given another fixed-term contract by the same employer after three years. The legislator aims to prevent so-called revolving-door arrangements. For employers that regularly use recurring temporary staff, this change may have major consequences for how staffing needs are met.

According to Minister Hans Vijlbrief, structural work should, in principle, also lead to a permanent employment relationship. Flexible contracts will remain possible for temporary work, sickness cover, jobs held by school pupils and students, and employees who have reached state pension age.

Why 2027 should be the year of preparation

Although most changes will not take effect until 1 January 2028, it is advisable for business owners to take them into account now if they currently make extensive use of zero-hours contracts or are considering entering into new zero-hours contracts. Zero-hours contracts may still be entered into up to and including 31 December 2027. It is therefore important to review in the coming period which on-call workers perform structural work and, where necessary, adjust workforce policies accordingly. New contracts can already take account of the upcoming changes and possible alternatives, such as a contract with a fixed minimum number of hours.

Considering the changes in good time is also important for HR processes, workforce planning and payroll administration. Organisations that only start at the end of 2027 often have insufficient time to adapt all systems and processes.

A first step is to identify all employees with:

• zero-hours contracts;
• min-max contracts;
• on-call agreements;
• fixed-term employment contracts; and
• temporary agency arrangements.

Pay particular attention to the number of contracts, the end date, the agreed hours and the options for extension.

Map out your workforce planning

Organisations with fluctuating workloads, in particular, would be well advised to determine how much flexibility is actually required. For example, if employees structurally work more hours than contractually agreed, this may indicate that future bandwidth contracts offer insufficient flexibility.

An analysis of the hours actually worked over the past one to two years can therefore provide valuable information for future contract types.

Review your HR and payroll systems

An often underestimated area of attention is how HR and payroll systems are configured. Many systems are currently set up for zero-hours contracts and on-call agreements. The introduction of bandwidth contracts may require changes to:

• rostering and planning software;
• time-recording systems;
• payroll processes;
• alerts for additional hours; and
• contract administration.

A key point is that schedules should be set up so that employees are called to work at least four days in advance.

If you have any questions or comments, please feel free to contact Marit Mulder, marit.mulder@pellicaan.nl.