AVV CAO Amsterdam: Binding for Everyone in the City

General Binding Declaration of CAO in Amsterdam

The general binding declaration (AVV) of a CAO requires employers and employees in Amsterdam sectors, such as hospitality and construction, to comply with its terms. Even non-members of trade unions or employers' organisations are bound by it. This ensures a level playing field in Amsterdam's vibrant economy and prevents unfair competition.

Why AVV is Crucial for Amsterdammers

In the Netherlands, CAOs often apply sector-wide, but without an AVV, non-members can offer lower terms, leading to a 'race to the bottom'. With an AVV, the CAO becomes mandatory for all in the sector, including Amsterdam SMEs. This protects employees in the city and promotes fair play. For basic info on CAOs, see our article on the collective labour agreement.

Legal Basis for AVV

The Collective Labour Agreement Act (WCAO) governs this. Key articles:

• Art. 3 WCAO: Minister of SZW grants AVV upon request from trade unions or employers' organisations.
• Art. 4 WCAO: Requirements such as ≥2/3 representation of employees in the sector.
• Art. 5 WCAO: Valid for max. 1 year, extendable.
• Art. 7 WCAO: Withdrawal upon CAO expiry or changed circumstances.

The minister verifies whether the CAO covers a broad scope of application, suitable for Amsterdam sectors like cleaning services on the Zuidas.

Requirements for Granting AVV

Strict ministerial review:

• Sector-wide scope (art. 1(2) WCAO).
• At least two-thirds of employees represented by trade unions.
• No conflict with labour relations or public order.
• Parties must be representative.

Failure to meet criteria? Request denied, preventing abuse.

AVV Application Procedure

Step-by-step:

1. Submission: To Minister of SZW with evidence and CAO text.
2. Advice & Consultation: SER advice and input from stakeholders, such as Amsterdam businesses.
3. Decision: Within 3 months, published in the Government Gazette.
4. Effective Date: Immediate, for the CAO duration.

The process takes months; in 2023, many AVVs for SME-heavy sectors in Amsterdam.

Standard CAO vs. AVV: Overview

Summary for clarity:

Amsterdam Practice Cases

Case 1: Construction in Amsterdam. AVV Construction CAO forces non-affiliated contractors on IJburg projects to pay CAO wages. Violation? Claims via Amsterdam District Court.

Case 2: Cleaning in Amsterdam. AVV sets rates for freelancers in hotels around Leidseplein, against exploitation.

Case 3: Hospitality in Amsterdam. AVV flexible schedules during busy tourist seasons for all cafés, including non-members.

Thus, AVVs stabilise the local market.

Rights and Obligations under AVV

Employee Rights:

• CAO benefits: salary, leave, pension.
• Report to Netherlands Labour Inspectorate; escalate to Amsterdam District Court.

Employer Obligations:

• Include CAO in contracts; keep records.
• Fines up to €4,000 (Minimum Wage Act).

Enforceable via sub-district judge at Amsterdam District Court; trade unions monitor.

Practical Tips for Amsterdam

• Check AVV for Sector: On szw.nl or cao.nl.
• Join as Member: Extra security alongside AVV.
• Review Contracts: Free advice at Amsterdam Legal Aid Office.
• Track Changes: Government Gazette alerts.
• Business Owners: Factor in costs; consider Municipality of Amsterdam support or employers' membership.