Employment security is all about the protection of employees from changes in earned income due to layoff, dismissal or other unforeseen circumstances. Among the various forms of employment security that are offered to employees, or on behalf of them, during times of layoffs, or on account of dismissal, are temporary employment rights. These include notice periods and redundancy pay. According to employment law in The Netherlands, an employee has the right to be informed about his impending redundancy. The duration and type of notice will vary according to the laws of the country. If it is not lawful in the employer’s employment contract, he should inform the employee in writing so that he can make necessary arrangements.
Another form of employment security is temporary employment security. This can be offered by employers or organizations that employ large numbers of people temporarily. Under such a scheme, an unemployed person who has been receiving social security and has reached the age of 65 years old may be eligible for unemployment insurance. However, there are certain rules to follow. According to employment law in The Netherlands, unemployed persons who have reached the legal retirement age cannot apply for unemployment insurance under any scheme.
How to apply for unemployment insurance under the schemes offered by employers? The first step is to decide the duration for which you want the scheme to run. In the case of most employers, this is normally for a fixed period of one year. Most Dutch citizens, however, prefer to avail of unemployment insurance for an indefinite period. This is because the average tax rate when you avail of this scheme is lower than the average tax rate charged on working adults in the general labor market.
The second step is to prepare an employment security questionnaire, which is used to determine whether you meet the eligibility criteria. You can prepare this questionnaire yourself, or you can hire a questionnaire manufacturer. The important things to include in the questionnaire are details about your work history, residence, age, Dutch citizenship, remuneration and earnings, details about any existing diseases, any pending legal cases, evidence of special skills, and your employment contracts (i.e. details of your contractual employer). You will also be required to present information on your last salary payment and your current wage report.
To know how much your monthly premium will be, you will need to know how many days are left until your next regular payment. Most employers calculate their monthly premium payments using the number of days left until the end of the month. If your monthly income is more than a predetermined minimum income level, then you are qualified for a standard tax credit. The Dutch system of social security does not recognize taxable wage base. You are considered employed if you receive a monthly salary payment from an employer (the one who pays all social security taxes).
After you complete the questionnaire, send it back to the employer with the appropriate address. The employer will then send you the Dutch employment security tax reports. If your employer is the responsible party, he/she will send the tax report via electronic mail.
You can also request the government to send you the unemployment tax reports via mail. However, most employers do not bother sending these files because they are aware that the government can charge high fees for this service. If you want to obtain your employment security file, then you will have to visit the nearest office of the Social Security Department.
After you get your Dutch unemployment tax report, make sure to provide all the relevant information. If you have changed your employer since the initial period of employment, then provide your new employer with your latest wage report. It is important to note that most employers consider overtime as part of your regular earnings.