Coalition agreement: getting started

The coalition agreement of the new Dutch cabinet was presented on 30 January 2026. In this coalition agreement for 2026–2030, the government is firmly committed to reforming the labour market and the work and income system. The chapter entitled 'Nederland werkt' makes it clear that the coming years will be dominated by activation, simplification and a reassessment of risk distribution between employers, employees and the government. Below, we outline the most important points for attention.

Job security

A central idea in the agreement is that people should be able to move from job to job more quickly. In a tight and rapidly changing labour market, stagnation must be prevented. The government therefore wants to encourage the route from job to job and make this the main route, both in the event of (imminent) dismissal and in the event of a voluntary change or when the work becomes too demanding.

To this end, the law on dismissal will be amended in certain respects. The reflection principle will allow more room for the human dimension, whereby personal circumstances can be given greater weight. The non-competition clause will also be modernised, with the aim of giving employees more freedom. For employers, this means that they will be able to apply a more tailored approach to reorganizations and redundancies, but also that they might have to take a more critical look at the use of restrictive clauses.

Transition allowance and training more closely linked

The transition allowance is being reformed and explicitly linked to the LLO (Lifelong Learning) infrastructure. The basic principle is that the compensation should actually contribute to the transition to other work. Employers who demonstrably and timely invest in training, retraining or reintegration can count on lower or even no obligations with regard to the new transition allowance.

At the same time, the current compensation scheme for the transition allowance after two years of illness will be abolished. This will particularly affect employers who have to dismiss employees who have been ill for a long time. On the other hand, the government is committed to simplifying and reforming the incapacity for work system, which is currently considered virtually unworkable.

Reform of continued payment of wages and incapacity for work

The term of continued payment of wages in the event of illness is considered a heavy burden, particularly for small and medium-sized enterprises. The government intents to make this scheme more workable for employers, without completely abandoning the incentive for reintegration. To this end, the administrative obligations under the Eligibility for Permanent Incapacity Benefit (Restrictions) Act (‘Wet verbetering poortwachter’) will be eased and there will be greater clarity about obligations and sanctions.

In addition, there is being worked towards a fundamental review of the sickness and incapacity for work system, shifting the focus to rapid and effective guidance towards work. The starting point here is that investing in reintegration will pay off and that a secure and decent safety net will be provided. This means that the initial period of illness will already be explicitly focused on returning to work, possibly with a different employer.

Shorter unemployment benefit period, but higher benefits at the start

The Unemployment Act (‘Werkloosheidswet’) will also be amended. Benefits will be higher in the initial period, but the total duration will be reduced to one year. The accrual and redemption of rights will be tightened up. The aim is to activate employees more quickly to find suitable work, while giving them sufficient financial security and peace of mind in the first few months to apply for jobs in a targeted manner.

More clarity for the self-employed

The position of self-employed persons will also be addressed. The government wants to introduce the Self-Employed Persons Act (‘Zelfstandigenwet’) in phases as soon as possible and is introducing a legal presumption of employment from the bill Vbar (Clarification of the Assessment of Employment Relationships and Legal Presumption – ‘Verduidelijking beoordeling arbeidsrelaties en rechtsvermoeden’) for self-employed professionals with a low hourly rate. This will tackle false self-employment more explicitly and at the same time, there will still be room for real self-employed professionals.

The basic disability insurance for self-employed professionals will be continued, with the option of private insurance. It is important for clients instructing self-employed professionals to critically assess employment relationships, as the risk of reclassification is increasing.

Collective labour agreements, discrimination and employership

Collective labour agreements remain an important pillar of employment terms and conditions. The government whises to increase support for them and modernise them, partly by reducing the regulatory burden within collective labour agreements . In addition, labour market discrimination will be explicitly tackled; employers are expected to pursue an active policy against discrimination in the workplace during recruitment and selection.

In (semi-)public sectors (such as healthcare and education), good employment practices are explicitly encouraged to ensure that people remain in employment. Social innovation (the renewal of work organisation) is mentioned as a key concept in this regard.

Work-life balance

Finally, the commitment to almost free childcare remains in place, with the largest allowance being abolished. This removes a major source of financial uncertainty for working parents. The message is clear: work must be rewarding, even when hours are extended.

What does this mean in practice?

The coalition agreement marks a clear change of course. The emphasis is shifting from protecting the existing position to facilitating movement in the labour market. Employers will experience relief in certain areas, such as sickness and reintegration, but will also be held accountable for their role in training, good employment practices and the prevention of discrimination. There will also be significant changes for employees: there will be more support for development and job-to-job transitions, unemployment benefits will be higher at the outset but will be reduced to one year, and the system of work and incapacity for work will be designed to be more activating.