Since 1 January 2016 it has been more interesting for employees to continue to employ old age pensioners, thereby making longer use of their knowledge and experience.
The standard notice period that applies to them is now one month and the compulsory sick pay period has been reduced to 13 weeks instead of two years. The new measures will be evaluated in 2018. It will then be determined whether the compulsory sick pay period will be reduced to six weeks.
Also, employers are obligated in the event of a reorganisation first to dismiss any old age pensioners in their employment. They are not obligated to comply with an old age pensioner’s request to increase his or her number of working hour. Such a request therefore cannot be detrimental to other employees.
The Wet werk en zekerheid (Work and Security Act) already provides that an employer may terminate an employee’s contract when he or she reaches the state retirement age without the intervention of the UWV (Employee Insurance Agency) or the court. No transition payment is due, either. But if an old age pensioner is subsequently given an open-ended employment contract, the customary dismissal rules apply, except that a transition payment is not due in that case either.
More information can be found at https://www.rijksoverheid.nl/onderwerpen/algemene-ouderdomswet-aow