In Utrecht, Collective Labour Agreements (CAOs) may deviate from the statutory main rule regarding transition compensation during probationary periods, as stipulated in Article 7:673(11) of the Dutch Civil Code (BW). Collective agreements may exclude or modify the compensation, provided they are not unreasonably onerous. The Utrecht hospitality CAO, relevant for the vibrant city centre and hotspots around the Oudegracht, does not exclude transition compensation for permanent employees during the probationary period, which is favourable for staff in local restaurants and cafés.
An example from the region: the Metal Industry CAO, important for Utrecht-based companies in the industrial zone near De Meern, offers a 'probationary period compensation' of 50% of the standard transition compensation. Employees in Utrecht can consult the applicable CAO via the websites of sector organisations such as KHN for hospitality or FME for the metal industry. The CAO prevails over the law if it is more favourable.
In the absence of a CAO, such as with smaller Utrecht startups in the Merwedekanaal zone, the law applies strictly, which can lead to disputes. Advice for Utrecht employers: explicitly integrate CAO rules into employment contracts. Employees: check the sector CAO upon commencement of employment. In 2023, this resulted in several district court cases in Utrecht regarding severance payments, with revisions in local CAO negotiations.