Littler Global Guide - Netherlands - Q2 2021

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

View all Q2 2021 Global Guide Quarterly updates   Download full Q2 2021 Global Guide Quarterly

Raise of Statutory Minimum Wage

New Legislation Enacted

Author: Eric van Dam, Partner – Clint | Littler

Twice a year the statutory minimum wage is revised, in January and July. As of July 1, 2021, employees aged 21 and older are entitled to at least a gross wage of € 1.701, per month for fulltime work, whether this is 36, 38 or 40 hours per week. The number of hours a fulltime workweek has can differ per company and is often agreed upon in collective labor agreements.

Online Travel Company Qualifies as Intermediary Travel Agency

Precedential Decision by Judiciary or Regulatory Agency

Author: Eric van Dam, Partner – Clint | Littler

On April 9, 2021, the Dutch Supreme Court overruled two lower courts and found that an online travel company qualifies as intermediary in the formation of agreements between accommodation providers and guests, bringing together supply and demand for travel arrangements. The Court ruled that the company falls under the definition of an (online) travel agent. Travel agencies are required to enroll in the travel sector's pension fund. With this ruling the Supreme Court annulled an earlier ruling of the appeal court and returned the case to the appeal court. That court must assess whether the company meets the other criteria for mandatory enrollment in the pension fund.

Employer May Not Withhold Salary for Working Hours Missed Due to COVID-19

Precedential Decision by Judiciary or Regulatory Agency

Author: Eric van Dam, Partner – Clint | Littler

During the pandemic, many companies were forced to temporarily decrease the working hours of employees, due to a diminished demand for companies’ services or to ensure safety in the workspace. It was unclear whether companies could ask employees to make up for the missed working hours, since this subject is not regulated by law. The court now ruled that the reduced productivity falls within the risk sphere of employers, which is why employees were entitled to payment of their full salary, although they worked less during the pandemic. Employers are not allowed to require employees to make up for the “missed” working hours and to withhold salary from the periodic payment once the hours are not made up for before a certain moment in time.

Working from Home Still Not a Right, Employer Permission Still Needed

Precedential Decision by Judiciary or Regulatory Agency

Author: Eric van Dam, Partner – Clint | Littler

Although working from home has become more common due to the pandemic, employees are still not entitled to decide to work from home without permission of their employer. The statutory right of employers to give instructions comprises the right to determine where the employee performs the work. According to the court, refusing to travel to the workplace due to bad weather conditions qualifies as a refusal to carry out the work, but does not justify a dismissal with immediate effect. More official and clear warnings and other lighter sanctions will have to precede such dismissal. The employee is awarded salary over the notice period and the statutory transition payment, but no fair compensation since her attitude caused disturbance of the relationship.

Legislative Proposal for the Protection of Whistleblowers Act

Proposed Bill or Initiative

Author: Eric van Dam, Partner – Clint | Littler

On June 1, 2021, the Dutch legislator submitted a bill to the House of Representatives to implement EU Directive 2019/1937, which must be done by all EU Member States before December 17, 2021. The bill obliges public and private companies with at least 50 employees to install an internal reporting office through which employees can report breaches of EU law and malpractices under Dutch law. Furthermore, whistleblowers will no longer be obliged to first report internally and their protection against detriment and liability procedures will be strengthened by introducing a reversed burden of proof. A company will then have to proof the lack of a relation between detriment of a reporter and the report or why the reporter should be held liable.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.