Collective Labour Agreements Act

Most companies and organisations participate in a collectieve arbeidsovereenkomst – CAO (collective labour agreement). This is a written agreement between one or more employers and one or more trade unions about the labour conditions for all employees, such as wages, payment for extra work, working hours, probation period, pension, education and childcare. The provisions in a CAO are often more favourable than those prescribed by law, but they may not contradict the law. If there is no CAO, you need an individual agreement with your employer about the work conditions, preferably in writing. The rules set out in the law are the basis for this agreement, that is, the employment contract.