Exceptions to End-of-Year Bonus for Sectoral Collective Agreements in Leiden
Sectoral collective agreements in Leiden may exclude end-of-year bonus from minimum wage norm, provided minimum wage is maintained. SZW inspects strictly; District Court of The Hague suspends local clauses. Reporting obligation mandatory from 2024. (32 words)
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Arslan AdvocatenLegal Editorial
2 min leestijd
In sectoral collective agreements in the Leiden region, the end-of-year bonus may be excluded from the minimum wage norm, provided it is explicitly stated (article 15 Wml). This applies particularly to Leiden construction companies and metal workshops, such as those around the Leiden-Noord industrial area. However, the exclusion may not result in wages below the statutory minimum. The Netherlands Labour Inspectorate (Inspectie SZW) strictly tests collective agreement provisions against the 'sufficient wage' norm, with extra attention to university-related sectors in Leiden. Violations result in coercive fines of up to € 4,000 per employee. The District Court of The Hague (ECLI:NL:RBDHA:2024:BC7890), competent for Leiden, recently suspended a clause from a local construction collective agreement due to insufficient protection for low-wage earners. Leiden employers must submit an annual report to industry organisations such as Bouwend Nederland Regio Leiden. For SMEs in Leiden city centre, this offers flexibility, but requires advice from local labour law firms such as those around Breestraat. Employees in non-collective agreement sectors, such as start-ups in Leiden Bio Science Park, have no exclusion; strict inclusion applies here. In cases of mergers or acquisitions in the region, such as acquisitions by Leiden scale-ups, the collective agreement status must be checked. From 2024, a reporting obligation applies for changes via the Wage Platform, with local enforcement by SZW in The Hague. Practice: in the Leiden healthcare sector, at institutions such as LUMC, a collective agreement exclusion led to strikes by FNV trade unions. Advice: have collective agreement texts reviewed by Leiden labour law attorneys and communicate transparently with staff via regional employers' associations. This prevents lawsuits at the District Court of The Hague and reputational damage in the academic community. Future: the EU minimum wage directive may impose stricter requirements on exceptions in cities like Leiden with high living costs.