The most important changes are:

- another calculation of years of service;

- more attention paid to the employee's position on the employment market and the financial position of the employer;

- more bespoke solutions for employees that are approaching pensionable age;

- clarification of the compensation regulations for temporary employment.

According to the current formula, compensation is calculated by multiplying the number of years of service by the gross monthly salary and by a factor in which the special circumstances of the case are expressed as a number.

In the calculation, years of service up to the age of forty count as one month's salary, from forty to fifty counts as 1.5 and from age fifty

as two. The magistrate's courts wish to refine this for the future, with years of service up to the age of 35 counting as 0.5, from age 35 to 45 as one, from age 45 to 55 as 1.5 and from age 55 as two month's salary. The intention of this is to try and tie things in more with the improved employment market position of young people, but retaining protection for the older employee. In addition to this, the magistrates wish to pay more attention to special circumstances that perhaps remain underexposed at present, such as the employment market position of employees and the financial position of the employer.

An employee that, through courses, is enabled by his employer to keep up and increase his knowledge will have a stronger position on the employment market and, in the view of the magistrates, will require less financial protection than other colleagues. And employees working in an industry where there are significant staff shortages will require, in the view of the magistrates, less protection than an employee in a sector in which unemployment is prevalent. The magistrates also wish to pay more heed to the financial position of the employer if he is able to demonstrate using financial statements and well-founded prognoses that he is not able to afford compensation.

Finally, a separate regulation has been introduced for employment agreements dissolved within two years. In the case of a temporary contract without the option of premature termination, compensation will in principle be equal to the salary for the remainder of the term. In all other cases, compensation will be calculated in the normal way.

It is expected that these recommendations will come into effect from 1 January 2009. The best thing to do, therefore, is to take the anticipated dismissal procedures into account.