You see it in almost all our job ads: ‘salary in accordance with ‘cao’. You probably hear the Dutch term ‘cao’ used a lot, for example in the office or on the news. But what does it actually mean? And why is it important for you as an employee? In this article we tell you everything you need to know!
WHAT IS A CAO?
A cao (collectieve arbeidsovereenkomst) is a written agreement between employer and employees. This agreement contains arrangements on employment conditions. These arrangements may concern for example; wages, bonuses, payment of overtime, working hours, probationary period, notice period or pension. A cao applies to a large group of employees within a particular industry or company. These agreements are often made by employers’ organizations and employees’ organizations (unions). A union is an organization that promotes the individual and collective interests of affiliated employees.
CAO AND LABOR AGREEMENT
In addition, you also have an employment contract with your employer. The arrangements made in this agreement apply only to you as an employee, not to the entire group. A cao is a supplement to your individual employment contract and determines your conditions of employment for the most part. The arrangements made in the cao always take precedence over the terms and conditions of employment.
COLLECTIVE AGREEMENT VS. LAW
There are also many different laws about employment conditions. The arrangements in a cao are often more favorable than the agreements in the law. For example, it often stipulates a higher wage than the minimum wage, or more vacation days than the statutory minimum. It also contains agreements that are not contained in the law, for example, about training opportunities. If there is a cao, it always applies instead of the law.
TYPES OF COLLECTIVE AGREEMENT
There are two different types of cao’s: the branch cao and the company cao. Large and medium-sized companies often have their own collective agreements, this is the company cao. The branch cao applies to all companies and employees in an industry, for example the cleaning industry or the construction industry. There are around 200 different branch cao’s in the Netherlands. The arrangements within those cao’s are made by union’s.
WHY IS A CAO IMPORTANT?
A cao ensures that everything on the labor market is properly regulated. Both employers and employees know where they stand and oblige each other to keep their agreements. This prevents conflicts.
Without a collective bargaining agreement, employees have minimal protection under the law. In addition, with a cao you often get more vacation days, regular wage increases, overtime pay or continued payment during illness. A cao also often regulates your pension. With a cao you are better off!
WHERE CAN YOU FIND YOUR CAO?
At Concreeto you always have to comply with the cao for temporary workers of De Nederlandse Bond van Bemiddelings- en Uitzendondernemingen (NBBU). This cao includes arrangements on, for example, vacation days. It’s possible that, as a temporary worker at Concreeto, you are also subject to another cao. At the company where you work you then have to deal with a branch cao. Your wage, for example, is determined in this cao. Would you like to know which cao(‘s) apply to you and which arrangements have been made in this cao? Your Concreeto contact person will be happy to help!
