Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

Minimum Wage Fixing Convention, 1970 (No. 131) - Netherlands (Ratification: 1973)

The Committee notes the adoption of the Minimum Wage and Minimum Holiday Allowance Act (WML) of 5 March 2007 and of the Minimum Wage and Minimum Holiday Allowance Decree of 1 May 2007, which aim to ensure compliance with minimum wages and statutory holidays by applying stricter sanctions in case of violations.

Article 1(2) of the Convention. Coverage of statutory minimum wage. The Committee notes the Government’s indication that “flexi-workers”, such as home workers, may be covered by the statutory minimum wage if they meet certain conditions, such as, for instance, a minimum work of four hours per week over a period of not less than three months. Moreover, the Committee understands that domestic workers and apprentices continue to fall outside the scope of the national minimum wage. It would appreciate if the Government would keep it informed of any progress made with regard to extending minimum wage protection to domestic workers and apprentices.

Article 2(1). Differentiated minimum wage rates on account of workers’ age. The Committee notes the Government’s indication that the Disability (Reintegration) Act (REA Act) was repealed on 29 October 2005 and that currently employers are entitled to apply for wage dispensation, the wage difference being compensated either by the Institute for Employee Benefit Schemes (UWV), or the schemes provided under the Work and Income (Ability to Work) Act (WIA), or the Disability Assistance Act for Handicapped Young Persons (Wajong), so that workers with disabilities are paid at least the national minimum wage. Concerning the reduced minimum pay rates applicable to the age group 15–23, the Committee considers that reducing the minimum pay for young workers by as much as 70 per cent may present some difficulty with respect to the overriding principle of equal pay for work of equal value. Available information also shows that such practice is not very common among European countries and, in any case, the scale of reduction is by far the most pronounced. The Committee accordingly requests the Government to share all available information justifying such minimum wage policy, indicating in particular whether this question has been the subject of consultations with the social partners, and the views that may have been expressed by the employers’ and workers’ organizations concerned. 

Articles 3 and 4(2) and (3). Review and adjustment of minimum wage rates. The Committee notes the information provided by the Government on the system of indexation of the minimum wage to the average wage increase in the public and private sectors measured by the Netherlands Bureau for Economic Policy Analysis (CPB). It also notes that this indexation can be cancelled if the indexation is found to have negative impacts on employment or social security expenditures. While noting the explanations on the wage linking system, the Committee would appreciate if the Government would explain how effect is given to the requirements of Articles 3 and 4 of the Convention, in particular the need to take into account the basic needs of workers and their families and also the need to provide for full consultations with and direct participation of the social partners in the periodic review and adjustment of the national minimum wage.

Article 5. Enforcement measures. The Committee notes the Government’s indication that the WML provides for a monetary fine which can be imposed by a labour inspector and which can amount to €6,700 for failing to pay the minimum wage and/or holiday allowance, whereas previously the Labour Inspectorate could only address a warning to the employer by letter. It also notes that this fine can be raised by 50 per cent if the employer has already been fined in the last 12 months. It further notes that the employer is under an obligation to pay the employee the back pay within four weeks after an order is issued by the labour inspector, failing which an incremental penalty of up to €300 per day, or a maximum of €25,000, can be imposed. Some 6,000 inspections were scheduled in 2007 especially in those sectors representing a high risk of sub-minimum pay or wage arrears, namely construction, agriculture and catering. The Committee would appreciate if the Government would continue to provide up to date information on the practical application of the new enforcement measures, and the results obtained.

Part V of the report form. The Committee notes the statistical information provided by the Government, in particular the fact that the percentage of workers remunerated at the minimum pay rate has fallen in the period 2001–04 from 2.1 to 1.5 per cent, while the percentage of workers earning less than the statutory minimum wage has fallen from 1.1 to 0.6 per cent in the same period. It also notes that according to the Government’s report, young workers, part-timers and women are most affected by problems of underpayment. The Committee would be grateful if the Government would continue to transmit all relevant information on the practical application of the Convention.