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Doing business in the Netherlands 17laid down in collective labour agreements.Minimum wageThere is a statutory minimum wage for employeesaged 23 or over. In addition there is a minimum wagefor employees aged between 15 and 22, the level ofwhich varies according to age. These minimum wagesare indexed and may be adjusted twice a year onJanuary 1 and July 1 (as of July 2014, the statutoryminimum wage for employees aged 23 or over is€ 1,495.20 gross per month, excluding 8% holidayallowance).Collective labour agreements (‘CAOs’)As mentioned above, employment agreements arealso influenced by collective labour agreements(‘CAOs’). Collective labour agreements are negotiatedbetween representatives of employers andemployees and are intended to provide consistentemployment conditions within specific branches.Collective labour agreements can be negotiatedfor an entire branch or be limited to a company.Furthermore, the Minister of Social Affairs canimpose the application of a collective labour agreementon the entire industry or sector by declaring acollective labour agreement generally binding. Anyprovision in an individual employment agreement,which restricts the rights of the employee under anapplicable collective labour agreement, is void. Insuch cases the provisions of the collective labouragreement prevail.Trade unionsAlthough the influence of trade unions in theNetherlands is generally waning, trade unions arestill well organised in the manufacturing industryand the semi-public sector or privatised sector.The most important trade unions are the NationalFederation of Christian Trade Unions (‘ChristelijkNationaal Vakverbond’ (CNV)) and The NetherlandsTrade Unions Confederation (‘Federatie NederlandseVakbeweging’ (FNV)). The main employers’ associationis the Confederation of Netherlands Industryand Employers (VNO-NCW).Works councilsAn employer with in general 50 or more employeesis obliged to establish a works council for consultationwith and representation of its employees basedon the Dutch Works Council Act (“Wet op de ondernemingsraden”).The employer is required to give theworks council an opportunity to render advice on anydecision which may in short have important consequencesfor the enterprise as a whole, such as a decisionconcerning transfer of control of the enterpriseor any unit thereof or a substantial reduction orexpansion in the activities of the enterprise. Consentof the works council is required for any decision concerningin short secondary conditions of employmentsuch as pension insurance schemes andarrangements relating to working hours. Theemployer is required to provide the works councilwith all the information it reasonably needs for theperformance of its duties.Employment agreementsAn employment agreement may be agreed for anindefinite or fixed period of time. If an employmentagreement for a fixed period of time is continued, anew agreement will then be deemed to have beenentered into under the same conditions and for thesame period of time (subject to a maximum of 1year) as the former employment agreement.Parties are free to enter into consecutive employmentagreements for a fixed period of time, endingby operation of law, however two restrictions (chainprovision) apply:• The aggregate duration of the consecutiveemployment agreements (with interruptions ofnot more than 3 months) may not exceed.• 36 months; if the aggregate duration is longerthan 36 months (interruptions included), thelast employment agreement shall be deemedto be an employment for an indefinite period oftime.• The number of consecutive employment agreementsmust be less than 4. If the number of consecutiveemployment agreements exceeds 3(while there are no interruptions of more than 3months in between the employment agreements),the fourth employment agreement willbe considered to be an employment agreementfor an indefinite period of time.The Work and Security Act will change the arrangementfor consecutive employment agreements as of 1July 2015. The legislator has reduced the maximumnumber of consecutive employment agreements for adefinite period. As of 1 July 2015 the general rule willbe that an employment agreement for a fixed period of

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