How the New Dutch Anti-Discrimination Law is changing the country’s labor market landscape

An unexpected and tragic side-effect of the COVID pandemic has been the demise of many small businesses and the subsequent unemployment of millions of workers around the globe, making global job markets highly competitive. In the Netherlands, a new bill has been proposed, called the Monitoring Equal Opportunities in Recruitment and Selection Act, to ensure fair job opportunities for qualified workers who may not fit the average worker profile. The bill is part of the Dutch Action Plan on Employment Market Discrimination 2018-2021, and its goal is to mandate and enforce compliance among business entities who operate in the Netherlands.

What the New Dutch Bill Proposes and How It Will Affect Businesses

In a nutshell, the primary tenets of the new bill are as follows:

  • To prohibit hiring discrimination based on sex, age, background, sexual orientation, disability, migration status, and pregnancy, and enforce compliance.
  • To provide people with equal opportunities and programs for dealing with employment discrimination.
  • To obligate employers to implement policies that combat discrimination in their hiring and selection processes.
  • To impose fines on companies found to be discriminatory and non-compliant.

Under the law, businesses with 10 or more employees will have to draft formalized equal opportunity policies in writing. Smaller employers with fewer than 10 employees will be allowed to verbalize their policies. In general, businesses with anti-discrimination policies in place should be minimally affected by the bill. Nevertheless, job applicants who are not chosen for a particular position will be able to contest the decision, based on discrimination, whether or not it in fact played a role. This can be costly for businesses, who will have to engage in legal battles to negate unfair charges. Meanwhile, business processes may be interrupted due to job positions remaining unfilled while enterprises are entangled in discrimination cases.

What Global Businesses can do to Deal with the New Dutch Anti-Discrimination Laws

For businesses who have already established operations in the Netherlands and are in the process of hiring a workforce there, it is imperative that you review and update your internal HR and hiring policies, and identify any policies or practices that might be construed to violate compliance requirements. If you plan to set up operations and hire workers in the Netherlands in the near future, you should carefully study the nuances of the labor bill and prepare to meet compliance guidelines. If you plan to operate without opening your own entity in the country, you will still need to adhere to the new bill’s requirements. Now is a good time to consider a solution alternative to learning all the nuances yourself, such as outsourcing your talent engagement to a global employer of record (GEOR) service provider.

How a Global EOR can Help Your Business Operating in the Netherlands Comply with the New Bill

In the world’s business realm, a global EOR is an international employment solutions provider that helps you navigate the legal fine points of hiring and compensating foreign workers, in full compliance with numerous in-country labor laws and regulations. Acumen International is a global EOR with an international presence in 190 countries worldwide. Anytime major policy shifts take place in a country, there are numerous uncertainties and unforeseen challenges to be ironed out. As a foreign company operating in the Netherlands, your enterprise can easily become caught in the crosshairs of the Equal Opportunities in Recruitment and Selection Act. By leveraging Acumen’s Global Employer of Record solution, your company can be assured of full compliance with the new Dutch hiring guidelines, saving you money, time and headaches from fines and litigation.

Safeguard Your Enterprise with Acumen’s GEOR Solution

Changes similar to those in the Netherlands are happening across the globe, and numerous in-country laws are constantly changing. As your global employment partner with extensive local expertise, Acumen can help you navigate similar legislative changes in 190 countries, sparing you from having to sort them out on your own. Our global experts will keep you updated on legislative changes, so you can compliantly engage global talent. To learn more about how Acumen’s global employment solutions can help your business, visit our website, or simply get your Acumen’s Express Quote for your country of interest now.

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