CAOregels

CAOregels are the rules contained in a CAO, the collective arbeidsovereenkomst used in the Netherlands to regulate terms of employment at sectoral or company level. A CAO is negotiated between employers’ associations and employee representatives, usually the trade unions. The CAOregels specify concrete conditions such as wage scales and progression, working hours and overtime, and holiday and leave arrangements. They may also include allowances (such as travel or meal allowances), pension provisions, and rules on training, career development, and performance appraisal. In addition, CAOregels often cover safety and health, equal treatment, and procedures for disputes and termination. They are designed to complement statutory rights and can provide terms that are more favorable to employees than the law requires.

Scope and enforceability: CAOregels apply to all employers and employees within the scope of the CAO. Some CAOs are algemeen verbindend verklaard (AVV), which means their terms become legally binding for all employers in the sector, even if they did not sign the agreement. If a CAO is not AVV, the rules bind primarily the signatories and the employers that fall under that CAO’s scope. CAOregels can be updated through periodic renegotiation and must stay compliant with evolving law.

Enforcement and impact: Disputes over CAOregels are typically resolved through the dispute mechanisms embedded in the CAO or through sector-specific employment law processes. By design, CAOregels provide predictability for employers and employees, ensuring harmonized working conditions while preserving room for sector-specific differences.