What is a collective labour agreement (CAO)?
A collective labour agreement (CAO) is a written agreement between employers' organisations and trade unions on the employment conditions that apply to employees in a specific sector or at a specific company. The collective labour agreement (CAO) contains agreements on matters such as wages, working hours, holidays, allowances, pensions and training. These agreements apply to all employees covered by the collective labour agreement (CAO), whether or not they are members of a trade union.
In the Netherlands, there are more than 700 different collective labour agreements (CAOs) that together regulate the employment conditions for millions of employees. The collective labour agreement (CAO) is an important instrument because it offers collective agreements that individual employees could not achieve themselves. As a labour migrant, it is essential to know which collective labour agreement (CAO) applies to your work.
Sectoral collective labour agreement (CAO) versus enterprise collective labour agreement (CAO)
There are two types of collective labour agreements (CAOs). An industry-wide collective labour agreement (bedrijfstak-CAO) (also known as sector collective labour agreement (sector-CAO)) applies to all companies in a particular sector, such as construction, cleaning, the metal industry or transport. A company collective labour agreement (ondernemings-CAO) applies only to employees of a specific company, such as KLM or Philips.
Most labour migrants fall under a sectoral collective labour agreement (CAO). Well-known examples are the collective labour agreement (CAO) for Temporary Agency Workers (ABU or NBBU), the collective labour agreement (CAO) Construction and Infrastructure, the collective labour agreement (CAO) Cleaning, the collective labour agreement (CAO) Horticulture and the collective labour agreement (CAO) Transport and Logistics. Your employer is obliged to inform you which collective labour agreement (CAO) applies to your employment contract.
Generally binding declaration (AVV)
An important concept is the general binding declaration (AVV). The Minister of Social Affairs may declare a sectoral collective labour agreement (CAO) generally binding. This means that the collective labour agreement (CAO) provisions then apply to all employers and employees in that sector, including employers who are not members of the employers' organisation that concluded the collective labour agreement (CAO).
The AVV ensures that there is a level playing field within a sector. Employers cannot compete by paying lower wages than the collective labour agreement (CAO) prescribes. This is particularly important for labour migrants, because it protects them against underpayment by employers who try to save on labour costs.
What does a collective labour agreement (CAO) contain?
A collective labour agreement (CAO) typically contains agreements on pay, including pay scales, periodic increments and pay increases. In addition, the collective labour agreement (CAO) regulates the working hours per week, overtime compensation and allowances for irregular work. Also, holiday days in addition to the statutory minimum, end-of-year payment or thirteenth month, pension scheme, training and education, and illness and incapacity for work are regulated in the collective labour agreement (CAO).
The collective labour agreement (CAO) often provides better conditions than the statutory minimum rules. For example, a collective labour agreement (CAO) can offer more holiday days than the statutory 20 days, higher overtime surcharges than legally required, and better continued pay during illness. It therefore pays to know your collective labour agreement (CAO) well.
How do you know which collective labour agreement (CAO) applies to you?
Your employer is obliged to state in your employment contract which collective labour agreement (CAO) applies. If this is not the case, you can ask your employer to do so. You can also check on the website of the Ministry of Social Affairs which collective labour agreements (CAOs) there are and whether a general binding declaration (AVV) applies to your sector.
If you work via a temp agency, you primarily fall under the temp collective labour agreement (CAO) (ABU or NBBU). However, for your remuneration, the hirer's pay (inlenersbeloning) applies, which means that with regard to wages and important allowances, you are entitled to the same conditions as the employees of the hiring company.
What if your employer does not comply with the collective labour agreement (CAO)?
If your employer fails to comply with the collective labour agreement (CAO), for example by paying too little salary or granting too few holiday days, you can hold your employer accountable for this. The trade union can act on your behalf and possibly initiate proceedings. In addition, you can yourself file a wage claim with the sub-district court.
At Arslan Advocaten, we help employees who experience problems with compliance with their collective labour agreement (CAO). We know the most important collective labour agreements (CAOs) in sectors where many labour migrants work and can advise you on your rights. Feel free to contact us if you suspect that your employer is not correctly applying the collective labour agreement (CAO).