Collective Labour Agreements under Dutch Law 

Learn how Collective Labour Agreements (CAOs) influence the conditions of employment contracts in the Netherlands.

As you embark on a new job opportunity in the Netherlands, it is crucial to familiarize yourself with the concept of collective labour agreements (CAOs) and the implications they have on your employment. Whether you are an employer or an employee, understanding the intricacies of CAOs is essential to ensure fair working conditions, proper compensation, and compliance with relevant regulations. In this comprehensive guide, we will delve into the world of Dutch collective labour agreements, shedding light on their significance and providing you with the knowledge you need to navigate the Dutch employment landscape.

A New Job: Unveiling the Importance of Collective Labour Agreements

When you enter into a new employment relationship, it is customary to have an individual labour agreement in place. This contract outlines the terms and conditions of your employment, including details about your role, working hours, and remuneration. However, it is crucial to note that for many employees, there are collective agreements in addition to their individual contracts. These collective labour agreements extend certain rights and benefits to employees and are typically applicable to specific sectors or industries. If you find yourself entering a new job, it is advisable to determine if there is a collective labour agreement that applies to your field, and if so, to ensure that your individual contract aligns with its provisions. As an employer, it is vital to remember that while you can establish agreements that exceed the requirements of the collective labour agreement, you must never offer terms that fall below its standards.

Business Sector Collective Labour Agreements: A Sector-Wide Approach

In the Netherlands, collective labour agreements can apply to an entire professional field, encompassing various businesses within that sector. These agreements, known as business sector collective labour agreements, address the specific needs and regulations of a particular industry. For example, sectors such as education, recreation, physiotherapy, or the dairy industry have their respective collective labour agreements. These agreements are negotiated between one or more employer organizations and one or more employee organizations, commonly referred to as labour unions.

Enterprise Collective Labour Agreements: Tailored to Specific Companies

In addition to business sector collective labour agreements, there are also enterprise collective labour agreements that exclusively apply to specific companies. These agreements are typically found in large corporations, such as IKEA or Shell, and are established between a single employer and one or more employee organizations. While these agreements are more company-specific, they still serve to ensure fair working conditions and protect the rights of employees within the organization.

Universally Binding Agreements (AVVs): Ensuring Widespread Adherence

While most collective labour agreements are binding for employees and employers, certain conditions must be met for their enforceability. An employer is obligated to adhere to the collective labour agreement's regulations only when it has been declared a universally binding agreement (known as "Algemeen Verbindend Verklaring" or AVV in Dutch). To achieve AVV status, both parties involved in the agreement must submit a request to the Minister of Social Affairs and Employment. Once the request is approved, the collective labour agreement becomes officially binding, and any deviations from its provisions require prior authorization. It is worth noting that the majority of business sector collective labour agreements also fall under the umbrella of a universally binding agreement, further safeguarding the rights and interests of employees across various industries.

Labour Conflicts: Addressing Discrepancies and Disputes

In the event of a conflict or discrepancy between an employee and their employer, referring to the collective labour agreement is essential. By consulting the agreement, employees can gain clarity on their rights and entitlements, ensuring that they are being treated fairly and in compliance with established labour practices. If an employee finds that their working conditions do not align with the provisions outlined in the collective labour agreement, it is advisable to engage in a dialogue with their employer. In case this proves ineffective, seeking assistance from a labour union or an external advisor is recommended. It is important to note that access to labour union support often requires membership. Employers, on the other hand, should familiarize themselves with the regulations outlined in the collective labour agreement applicable to their field or company and ensure compliance to maintain a harmonious work environment.

Locating Your Collective Labour Agreement: A Guide for Employers and Employees

Employers have an obligation to provide (new) employees with access to their collective labour agreement for review. However, if you are unable to obtain a physical copy, you can conveniently find collective labour agreements online. By conducting a simple online search, utilizing relevant keywords such as your field, "collective labour agreement" (cao), the desired year, and "pdf," you can quickly access the agreement you are looking for. For example, searching for "horeca cao 2020 pdf" would yield the "cao voor de horeca" (collective labour agreement for the service industry) as a top result. Similarly, searching for "zorg cao 2020 pdf" would lead you to the "cao zorg en welzijn" (healthcare collective labour agreement) on the website of the Ministry of Social Affairs and Employment. These online resources provide access to a wealth of collective labour agreements that cater to various industries and sectors.

When No Collective Labour Agreement Applies: Exploring Alternative Options

While collective labour agreements cover a significant portion of the Dutch workforce, it is important to note that not all employees fall under these agreements. Statistics indicate that around one in three individuals do not benefit from collective labour agreements. If you find yourself in this category, it is crucial to consider the potential impact on your labour position. In such cases, employees have the option to establish their own collective labour conditions in collaboration with a labour union. The Netherlands boasts several prominent labour unions, including FNV, CNV, and De Unie. These unions can provide guidance on how to create a customized collective labour agreement that aligns with the specific needs and interests of employees in the absence of a standard agreement.

Legislation and Labour Laws: Navigating the Legal Landscape

Regardless of whether your field or company operates under a collective labour agreement, employers must comply with established regulations set forth by Dutch labour laws. These regulations include the Law Balanced Labour (Wet Arbeid in Balans, WAB), the workplace legislation (Arbowet), and the Law Work and Security (Wet Werk en Zekerheid, WWZ). Moreover, the Law on Collective Labour Agreements, enforced since 1927, ensures that collective labour agreements are respected by employers and upheld as legally binding. Given the intricate nature of labour law, which can be challenging to decipher independently, seeking legal consultation is advisable when encountering complex labour conflicts. Professional legal advice can help elucidate your legal standing and offer solutions tailored to your specific circumstances.hen it comes to non-competition and non-solicitation clauses, you may have questions or concerns about their implications and enforceability. At Fennek Advocaten, our experienced employment lawyer is here to assist both employers and employees with expert advice and representation. With our in-depth knowledge of Dutch employment law, we can provide the guidance you need to navigate these important legal aspects. Don't hesitate to reach out to us for professional assistance.

Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. For specific guidance on your situation, I recommend consulting with a qualified professional.