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Exceptions to Year-End Bonus for Sectoral Collective Agreements in Utrecht

Sectoral collective labour agreements in Utrecht may exclude year-end bonuses, provided the minimum wage is maintained. The Ministry of Social Affairs and Employment enforces strict controls; the District Court of Midden-Nederland suspended clauses. Reporting obligations apply from 2024.

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In sectoral collective labour agreements (CLA) in the Utrecht region, the year-end bonus may be excluded from the minimum wage standard, provided this is explicitly stated (Article 15 of the Minimum Wage and Minimum Holiday Allowance Act, Wml). This is particularly common in Utrecht's construction sector and metal industry, such as in projects around Utrecht Central Station and the Merwede Canal Zone. However, the exclusion must not result in wages falling below the statutory minimum. The Inspectorate SZW (Ministry of Social Affairs and Employment) rigorously assesses CLA agreements against the 'adequate wage' standard, with additional scrutiny given to Utrecht's growing labour market. Non-compliance may result in penalty payments of up to €4,000 per employee. The District Court of Midden-Nederland in Utrecht (ECLI:NL:RBMNE:2024:CD4567) recently suspended a CLA clause for a local construction company due to insufficient protection of employees. Employers in Utrecht are required to submit an annual report to regional industry organisations such as Bouwend Nederland Utrecht. While this offers flexibility for SMEs in the city, seeking legal advice from Utrecht-based employment law firms is essential. Employees in non-CLA sectors, such as retail in Hoog Catharijne, are not subject to exclusions; strict inclusion applies here. In cases of mergers or acquisitions within the Utrecht economy, the CLA status must be reviewed. From 2024, a reporting obligation for changes will apply via the Wage Platform, with local enforcement by SZW offices in Utrecht. In practice, within Utrecht's healthcare sector, such as at hospitals like UMC Utrecht, a CLA exclusion led to strikes by trade unions FNV and CNV. Advice: Have CLA texts reviewed by specialists from the Utrecht Bar Association and communicate transparently with staff. This helps prevent lawsuits in the local court and reputational damage in the region. Looking ahead, the EU Directive on adequate minimum wages may impose stricter requirements on Utrecht's exceptions, particularly given the pressure on the housing construction market.