For many retailers, flexible contracts are an important part of their workforce management. In the coming period, there will be significant changes to the rules governing on-call contracts, temporary contracts, and temporary agency work. New legislation is intended to provide employees with greater certainty regarding their working hours and income. These changes may have implications for retailers in terms of workforce planning, labor costs, and how they structure their workforce.
The first changes will take effect at the end of 2026, with most of the other changes to follow in 2028. What exactly will change, and what could that mean for your store?
The new rules are set forth in the Act on Greater Security for Flexible Workers. One of the changes is that, starting January 1, 2028, on-call contracts will largely be replaced by bandwidth contracts. Under a bandwidth contract, the employer and employee agree on a minimum and maximum number of hours. The maximum may be up to 30% above the minimum. For example, if you agree on a minimum of 10 hours per week, the maximum may be 13 hours. With a bandwidth contract, your employee has a better idea of how many working hours and what income he or she can expect.
In addition to the new rules for on-call contracts, the chain provision for temporary employment contracts is also changing. Starting January 1, 2028, the required interval after three temporary contracts will be extended from six months to three years. Would you like to retain an employee after three temporary contracts? In that case, a permanent contract is the more logical choice, since you cannot simply rehire the employee on a temporary basis after such a short interval.
There are a few exceptions to the new rules for high school and college students with part-time jobs. For example, on-call contracts will remain an option for this group even after 2028. Exceptions also apply to the chain provision, including for employees under the age of 18 who work an average of no more than twelve hours per week.
Do you, as a retailer, employ temporary workers—for example, to handle peak demand? On December 31, 2026 (and thus much earlier than the other changes), the rules governing the terms and conditions of employment for temporary workers will change. As of that date, temporary workers will be entitled to terms and conditions of employment that are at least equivalent to those of employees directly employed by the organization where they work. This applies not only to salary but to the entire package of terms and conditions of employment.
The new law may affect various aspects of your HR policy and workforce management. That’s why it’s a good idea to take a look at your own situation now. What types of contracts are you currently using, and what changes will this bring for your employees? By assessing the potential impact on your staffing, scheduling, and payroll costs, you can prepare effectively.
At R&R, we understand the challenges of workforce management in retail. Would you like to discuss what the new rules mean for your organization? Our colleagues in Customer Success would be happy to help you figure it out. Please contact us!
