Shorter probation period
The updated legislation provides for the reduction or elimination of the probation period for young people seeking their first job and for the long-term unemployed. The probation period is currently 180 days, but it will be reduced if the employee has had a fixed-term contract lasting 90 days or more with another employer. Where the probation period is 120 days or more, the employer must give the employee 30 days’ notice of termination of the contract.
Higher overtime pay
The new legislation provides that overtime exceeding 100 hours a year will be paid at the following increased rates: “50% for the first hour or fraction and 75% for each subsequent hour or fraction on working days”, and “100% for each hour or fraction on compulsory or additional weekly rest days, or on public holidays”. These amounts represent an increase compared with the current 25%, 37.5% and 50%, respectively.
Remote work contracts and expenses
Remote work contracts must specify the amount to be reimbursed for additional expenses incurred by the employee. In addition, the government will set a maximum tax-free limit for these expenses. This compensation is considered a business cost and not the employee’s income, up to the amount set by the government. Such reimbursements will therefore be tax-exempt, similar to the meal allowance, whose maximum amount is €5.20 per day when paid by bank transfer, or €8.32 per day when paid by meal card.
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