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14 June 2018 / news

Retrospective effect of financial claims

BenefitsBit: Retrospective effect of financial claims regarding industry-wide regulations (Bit).

Financial claims regarding mandatory industry-wide regulations in the Netherlands can have a retrospective effect of many years. For instance, an employee can file a claim against his employer for registration at an industry-wide pension fund and payment of pension-premiums with retrospective effect of 20 years. The same employee can also file a claim for pension build-up against the industry-wide pension fund with retrospective effect of 20 years. Finally, the industry-wide pension fund can file a claim against the employer for registration and payment of pension-premiums with retrospective effect of 20 years.

This means that the employer must take into account that claims regarding mandatory industry-wide regulations that are submitted in 2018, could go back to 1998. In case an employer does not apply (the correct) mandatory industry-wide regulations, it is important for the employer to assess the scope of the risk connected with this (possible) non-compliance. The future of the employer’s company could be at stake.

As of when do mandatory industry-wide regulations apply to an employer's company? As a rule these regulations apply to the employer's company as of the date the employer enters into employment agreements with one or more employees. When the extent and nature of the activities of those employees fall within the defined scope of operation of mandatory industry-wide regulations, the employer's company is legally obliged to apply these regulations. Therefore, an employer should be aware of the fact that the moment he enters into an employment agreement with an employee, this could trigger the applicability of mandatory industry-wide regulations. Timely ascertain whether, and if so, which mandatory industry-wide regulations apply to the company. Assessing this risk should be made a top priority, as the financial stakes are usually high. We can provide a so-called 'quick-scan' to assess whether such a risk exists. The sooner, the better: the best day for a quick scan is today!

 

More info? Contact your regular Loyens & Loeff advisor, or Mathieu Halsema or Robert Goedhart.

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