Collective Labor Agreement under Dutch law

Many companies in the Netherlands have declared a collective labor agreement (“CLA”) (in Dutch: “CAO”) applicable.
Under Dutch law this CLA is binding on all Dutch employment agreements within the company, and governs basic employment conditions such as: payment of wages, holiday rights, overtime, termination of contracts etc.

Universally binding under Dutch employment law

For the question whether a CLA is applicable to the company, the scope of the business activities of the respective company are relevant.
Some CLA’s are universally binding on the company if the company fits the scope of a certain CLA.
Under Dutch law, CLA’s can be declared universally binding (in Dutch: “algemeen verbindend verklaring”) from time to time by the Minister of Social Affairs. As a result, the CLA is applicable during the periods in which the CLA has been declared universally binding. A company might be granted dispensation from the obligation to participate in the CLA for the first three years.

Further information regarding Dutch Collective Labor Agreements

If you have any questions regarding a collective labor agreement under Dutch law, or concerning any other issue concerning employment law in The Netherlands, please contact:

Marleen van Woerden, employment attorney in Amsterdam specialized in Netherlands employment law.

LAW - associated firm

Together with a number of international law firms outside
The Netherlands, Blenheim is member of Lawyers Associated Worldwide.

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