You are here:
06 June 2018 / news

Mandatory industry-wide regulations in the Netherlands

BenefitsBit: Be careful! Mandatory industry-wide regulations in the Netherlands.

Office with a view

Nobody likes to be subsequently confronted with unexpected payments. An employer certainly doesn’t want to be faced with payments that could bring his business at serious risk. Employers should be aware of the mandatory industry-wide regulations that are applicable to most companies in the Netherlands.

These regulations require a company to (1) participate in an industry-wide pension fund, (2) participate in one or more industry-wide collective social funds and (3) apply a collective labour agreement. Over 50 industries with this kind of regulations exist in the Netherlands. It’s important to check whether one of these mandatory systems of industry-wide regulations apply to the company. What happens if a company does not apply these regulations at all, or perhaps the wrong ones? Be aware of the fact that a company that does not fall under the scope of mandatory industry-wide regulations is an exception to the rule. The possibility exists that (for instance) a trade union or an administration-office of industry-wide funds turns up on the company’s doorstep. When a ‘presumption of applicability’ of the regulations exists, the company is compelled to allow an investigation into this applicability. Finally, the court can pass a judgment that the company falls within the scope of mandatory industry-wide regulations. The (financial) consequences of such a judgment can be significant. Therefore, we strongly recommend not to await such an investigation and following judgment. 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 adviser, or Mathieu Halsema or Robert Goedhart.

Follow our Showcase Page on LinkedIn for updates and more BenefitsBits: https://www.linkedin.com/company/benefitsbits



OECD’s plans for global minimum taxation: the next steps

Multinationals have now the opportunity to help shape the OECD's proposals for a global minimum taxation in a consultation open until 2 December 2019. read more
clear-building-looking-up-blue-sky

State aid update: EU General Court sets framework for the European Commission to enforce arm’s length transfer pricing under State aid rules

On 24 September 2019, the EU General Court upheld the Commission’s decision that Fiat received unlawful State aid from Luxembourg, and at the same time annulled... read more

Investment Management News Update – Summer 2019

The Investment Management News Updates: an overview in which our Investment Management Team highlights recent developments. read more