Legally sharp

Flexible work overhaul: what is changing for employers?

Flexible work overhaul: what is changing for employers?

Many employers make structural use of fixed-term contracts, on-call workers or temporary agency arrangements. However, that flexibility is set to be significantly restricted in the coming years.

On 12 May 2026, the Dutch House of Representatives approved the More Security for Flexible Workers Act. If the Senate also approves the bill, the law is expected to enter into force on 1 January 2028.

The proposed changes could have major consequences for workforce planning, contract structures and the way organisations design their flexible staffing model.

Why this law?

For years, the Netherlands has had a relatively high share of flexible labour. This includes not only fixed-term contracts, but also on-call contracts, min-max arrangements and temporary agency work.

According to the legislator, flexible work has in some sectors become too much of a structural organisational model, even though it was originally intended for temporary or fluctuating work.

The new law is intended to give workers more certainty about income, working hours and continuity of work.

The core of the bill is clear:

  • flexible work remains possible;
  • but structural work should, in principle, be organised through permanent employment relationships.

Current rules: the chain rule

At present, the so-called chain rule applies to fixed-term employment contracts.

The current basic rule is:

  • a maximum of 3 fixed-term contracts;
  • within a period of 3 years;
  • with a break of no more than 6 months between contracts.

If one of these limits is exceeded, an open-ended employment contract arises automatically.

This happens, for example:

  • with a fourth fixed-term contract; or
  • if the total duration of the chain exceeds 3 years.

The current scheme still offers employers relatively broad flexibility. After a break of more than 6 months, a new chain of fixed-term contracts can start again. In practice, this regularly led to so-called “revolving door constructions”.

An end to revolving door constructions

The bill significantly tightens the chain rule.

Under the proposal, after three fixed-term contracts a new fixed-term contract with the same employee may only be concluded again after a break of 3 years.

This makes it much more difficult to redeploy workers flexibly after only a short interruption.

What does this mean in practice?

Employers will have to make a clear choice sooner:

  • hire an employee on a permanent basis; or
  • part ways once the maximum fixed-term period has ended.

Organisations that rely for a long time on successive fixed-term contracts in particular will need to critically review their workforce structure.

Zero-hours contracts will largely disappear

Another far-reaching change is that zero-hours contracts and similar on-call arrangements will largely disappear.

In their place, the bill introduces the so-called bandwidth contract — effectively a statutory form of a min-max contract.

Under this model, the employer must:

  • set a minimum number of hours; and
  • agree a maximum number of hours of no more than 130% of the minimum.

In addition, the proposal provides, among other things, that:

  • workers may refuse hours above the maximum; and
  • structurally working more hours may lead to a mandatory offer to increase the contractual hours.

As a result, part of the risk of fluctuations in work volume shifts from the worker to the employer.

Exceptions

For certain groups, on-call contracts are expected to remain possible, including:

  • school pupils;
  • students;
  • state pension age workers.

Temporary agency workers: equivalent employment conditions

The bill also contains important changes for temporary agency work.

The starting point will be that temporary agency workers are entitled to employment conditions that are at least equivalent to those of employees in comparable positions at the client company.

This relates not only to salary, but also to:

  • allowances;
  • working hours;
  • reimbursements; and
  • other secondary employment benefits.

In addition, the duration of the most flexible temporary agency phases will be shortened.

Practical consequences

Using agency workers as a structurally cheaper alternative to in-house staff will therefore become less attractive, both legally and financially.

Employers will have to look more closely at:

  • the necessity of flexible deployment;
  • the duration of temporary deployment; and
  • the total cost of external labour.

What can you already do now?

Although the law is unlikely to enter into force until 1 January 2028, it is wise to start preparing now.

For example, consider:

  • mapping existing fixed-term contracts;
  • reviewing on-call and zero-hours arrangements;
  • analysing structural roles within the organisation;
  • revising agreements with temporary work agencies; and
  • adjusting HR and capacity planning.

Preparing early prevents surprises and reduces legal risks.

Conclusion

The More Security for Flexible Workers Act marks a clear shift in Dutch employment law.

For employers, this means a move away from maximum flexibility toward greater predictability and more structural employment relationships.

Organisations that anticipate these changes in time can not only reduce risks, but also build a more stable and future-proof workforce structure.

Questions?

Would you like to know what these legislative changes mean in practice for your organisation?
Or would you like to have your employment contracts and flexible staffing model legally reviewed?

Please feel free to contact us. Our specialists will be happy to think along with you.

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