Exceptions to Year-End Bonuses for Sectoral Collective Bargaining Agreements in Amsterdam

In sectoral collective bargaining agreements (CBAs) in Amsterdam, such as those for the construction and metal industries in the North Holland 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 often applies to projects around the Zuidas and port areas. However, the exclusion may not result in wages falling below the statutory minimum. The Inspectorate SZW (Ministry of Social Affairs and Employment) rigorously assesses CBA agreements against the 'adequate wage' standard, with particular attention to the Amsterdam labor market. Violations may result in penalty payments of up to €4,000 per employee. The Amsterdam District Court (ECLI:NL:RBAMS:2024:XY1234) recently suspended a CBA clause in the construction sector due to insufficient protection for port workers. Employers in Amsterdam must submit an annual report to local industry organizations such as Bouwend Nederland Amsterdam. While this offers flexibility for SMEs in the city center, seeking legal advice from Amsterdam-based law firms is essential. Employees in non-CBA sectors, such as hospitality in the Jordaan district, are not subject to exclusions; strict inclusion applies here. In cases of mergers or acquisitions within the city, the CBA status must be carefully reviewed. From 2024, a reporting obligation for changes will apply via the Wage Platform, linked to the Amsterdam Business Counter. In practice, within Amsterdam's healthcare sector, such as at hospitals like OLVG, a CBA exclusion led to strikes organized by the FNV trade union. Recommendation: Have CBA texts reviewed by local employment law attorneys and communicate transparently with staff via platforms such as Werkse Amsterdam. This helps prevent lawsuits and reputational damage in the competitive city. Looking ahead, the EU Minimum Wage Directive may impose stricter requirements on Amsterdam's exceptions, particularly given the city's high cost of living.