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Impact of Collective Labour Agreements on Transition Compensation during Probationary Periods in Amsterdam

In Amsterdam, collective labour agreements (CLAs) can modify the probationary period exclusion for transition compensation. Discover how collective agreements in local sectors such as hospitality and metal offer more favourable rules for employees.

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In Amsterdam, with its thriving hospitality and metal sectors, collective labour agreements (CLA) may deviate from the statutory main rule regarding transition compensation during probationary periods. Article 7:673(11) of the Dutch Civil Code permits collective agreements to exclude or modify the compensation, provided it is not unreasonably onerous. The Amsterdam hospitality CLA does not apply probationary period exclusions for permanent employees, which is crucial in a city filled with tourist hotspots such as the canal houses and Leidseplein.

For example, the Metal CLA, relevant for Amsterdam’s industrial areas such as Westpoort, includes a 'probationary period compensation' of 50% of the standard transition compensation. Employees in Amsterdam should consult the applicable CLA via the website of the sector organisation, such as FNV Horeca or CNV Metaal. If the CLA is more favourable, it takes precedence over the law, which makes a significant difference in the vibrant labour market of the capital.

Disputes often arise in Amsterdam sectors without a CLA, such as startups in the Zuidas; in such cases, the law applies. Advice for employers: explicitly integrate CLA rules into the employment contract when hiring in Amsterdam. For employees: verify upon commencement of employment whether the CLA deviates, particularly in local CLAs for retail and events. In 2023, this led to revisions of severance compensations in legal proceedings before the Amsterdam subdistrict court.