Enforcement and Sanctions for Non-Compliance with Minimum Wage Regulations in Amsterdam

The Inspectorate SZW strictly enforces compliance with the minimum wage in Amsterdam, including year-end bonuses in the hospitality and retail sectors. Violations result in fines ranging from €2,000 to €12,000 per employee, doubled in case of repeat offenses under the Obstruction Act. Priority is given to vulnerable sectors in Amsterdam, such as hospitality in the Red Light District, office cleaning, and agriculture in peripheral areas. In 2023, the Inspectorate in North Holland, with a focus on Amsterdam, imposed over 800 fines, amounting to €4 million. Companies in the city often first receive a warning via the local SZW office, followed by an on-site inspection. Employees can report anonymously through the national hotline or Amsterdam trade union offices. The Public Prosecution Service initiates criminal proceedings in cases of intent, with recent cases in the city center. Administrative procedures take approximately six months; appeals can be lodged with the CBb. Example: a hospitality chain at Dam Square paid €300,000 following underpayment of dozens of seasonal workers. Advice for Amsterdam entrepreneurs: conduct internal audits, train payroll administrators, and use eRecognition for digital reporting. For international workers in the city, rules from the Law on Tackling False Self-Employment apply, such as for Uber drivers. The UWV reclaims back wages within five years via the Amsterdam Work Centre. Trends: AI tools for wage controls by the regional government. Invest in compliance to avoid reputational damage in the tourist city. Legal assistance is recommended via FNV Amsterdam or VNO-NCW North Holland region.