NederlandsCAO stands for collective labor agreement. This agreement contains all terms and conditions of employment, or all agreements made between employer and employees. This includes wages, allowances, working hours , etc. The collective labor agreement applies to a large group of people.
Who concludes a collective agreement?
A collective labor agreement is drawn up and concluded by 1 or more employers, 1 or more employer organizations and 1 or more trade unions (employees' organisations). These organizations determine whether or not a collective labor agreement applies to you.
The collective labor agreement
The agreements made in the collective labor agreement are often more favorable than the employment conditions drawn up by law. Een example is that you earn more than the minimum wage or get more vacation days. You can never get less than the law requires.
The industry collective labor agreement
This is an agreement that applies throughout an entire business sector. The collective labor agreement only applies to companies and employees that are affiliated to the sector collective labor agreement. Unless the collective labor agreement has been declared universally binding, the collective labor agreement is mandatory for the entire industry.
The entrepreneurs' collective labor agreement
This collective labor agreement only applies within a company and is concluded between the employer and one or more employee organizations.
CLA takes precedence over individual employment contract
If you have also concluded an individual employment contract outside the collective labor agreement, this may not be “worse” than the agreements in the collective labor agreement. Can always be more favorable.
no collective agreement
Are there no collective labor agreements or own arrangements? Then make agreements with your employer about your terms of employment. The general rules of labor law apply here. It is recommended that the agreements between you and your employer be laid down in writing in an individual employment contract. This is not mandatory.
Source: https://www.rijksoverheid.nl/onderwerpen/labour-contract-en-cao/vraag-en- Antwoord /wat-is-een-cao