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Human resources

Annual agreements become function-based contracts

27 November 2023

A change in the Collective Labour Agreement means that from 1 January 2024 it will no longer be possible for staff in scale 10 or lower to conclude an annual agreement. The Regulation on Annual Agreements will also expire.

What is an annual agreement?

With an annual agreement you make agreements with your manager about the results and activities you should achieve, and you are responsible yourself for taking leave. You do not need to apply for this leave, nor does it have to be approved or recorded. At the end of the year you will be assumed to have taken up all your leave entitlement. 

What are the effects of this change?

Annual agreements are referred to in the Collective Labour Agreement as function-based contracts. To reduce the administrative burden, it has been agreed with the Local Consultative Committee that we will adhere to the Collective Labour Agreement and discontinue the Regulation on Annual Agreements with effect from 1 January 2024. From that date, we will only work with function-based contracts and no longer with annual agreements.

The main effects of this change are:

  • The annual agreement will expire at the end of 2023 for staff in scale 10 or lower. These members of staff cannot exchange this for a function-based contract. With effect from 1 January 2024 they will transfer to the system of regular leave accrual and take-up.  
  • The annual agreements of staff in scale 11 or higher will be converted to function-based contracts from 1 January 2024. This is merely a change of name. The staff concerned are themselves still responsible for taking their leave entitlement. They do not need to apply for this leave, nor does it have to be approved or recorded.  At the end of the year it will be assumed that the leave entitlement has been taken up.

Questions and more information

Managers and staff with an annual agreement have already been informed personally about this change. If you have any questions about your annual agreement, you can discuss this with your manager.

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