{"id":91705,"date":"2022-07-29T10:01:38","date_gmt":"2022-07-29T10:01:38","guid":{"rendered":"https:\/\/wesselvanderlans.nl\/ongecategoriseerd\/what-is-a-collective-labour-agreement-cao-and-how-does-it-affect-me\/"},"modified":"2025-09-22T14:46:44","modified_gmt":"2025-09-22T14:46:44","slug":"what-is-a-collective-labour-agreement-cao-and-how-does-it-affect-me","status":"publish","type":"post","link":"https:\/\/wesselvanderlans.nl\/en\/knowledge-base\/what-is-a-collective-labour-agreement-cao-and-how-does-it-affect-me\/","title":{"rendered":"What is a collective labour agreement (cao)? And how does it affect me?"},"content":{"rendered":"\n

In the Netherlands employer organisations and employee organisations may negotiate and conclude a collective labour agreement (in Dutch: cao<\/i>) in their branch. These agreements contain employment conditions, like salary scales, number of holidays, permitted working hours, etcetera. <\/p>\n\n

Dutch employment law facilitates these collective labour agreements by allowing deviation from the law via collective labour agreements in certain cases. For example, it is only possible to deviate, to the disadvantage of the employee, from the rule that after either 3 years or 3 subsequent contracts a temporary employment contract<\/span><\/a> is automatically converted into a contract of indefinite term via a collective labour agreement. <\/p>\n\n

Scope<\/b><\/h2>\n\n

Collective labour agreements have a scope, which usually consists of a description in the collective labour agreement of the company activities considered to fall under the branch and a description of those considered to be employers and employees in the light of this collective labour agreement. <\/span><\/p>\n\n

Generally Binding Collective Labour Agreement<\/b><\/h2>\n\n

The minister of Social Affairs and Employment (in Dutch: Sociale zaken en werkgelegenheid)<\/i> can declare a collective labour agreement generally binding. This means that it applies to all employment relationships that meet the above-mentioned scope. The general binding collective labour agreement may last a maximum of 2 years. <\/span><\/p>\n\n

When should an Employer Apply the Collective Labour Agreement to an Employee?<\/b><\/h2>\n\n

An employer should apply the collective labour agreement if:<\/p>\n\n

    \n
  1. They are a member of a party that concluded the collective labour agreement. The employment conditions should then be applied to all employment relationship that meet the scope, including to those with employees that are not a member to a concluding party themselves; <\/li>\n\n\n\n
  2. They are not a member of a party that concluded the collective labour agreement, but the collective labour agreement has been declared generally binding. The employer is required to apply the generally binding collective labour agreement to all employment relationships within its scope until the end of the declaration. <\/span><\/li>\n<\/ol>\n\n

    When Can an Employee Demand that the Employer Applies the Collective Labour Agreement to Their Employment Relationship?<\/b><\/h2>\n\n

    There are 3 situations in which an employee can demand that the employer applies the collective labour agreement to their relationship:<\/p>\n\n

      \n
    1. Both the employee and the employer are a member of a party to the collective labour agreement;<\/li>\n\n\n\n
    2. In the employment contract includes a clause stating that the collective labour agreement applies;<\/li>\n\n\n\n
    3. The collective labour agreement has been declared generally binding.<\/li>\n<\/ol>\n\n

      Despite an employer being required to apply the collective labour agreement to all employment relations within the scope if he is a member of a concluding party, the employee to whom none of the above options applies, has no way of invoking this obligation towards their employer. The only option for this employee is to contact the employee organisations. <\/span><\/p>\n\n

      Consequence of not Applying the Collective Labour Agreement<\/b><\/h2>\n\n

      It is advisable for employers to carefully investigate whether a collective labour agreement applies or should be applied, as wrongfully not applying it may have serious and expensive consequences: <\/span><\/p>\n\n