Attorney at Law
Attorney at Law
More and more people are buying their groceries online, which has for some time raised interesting legal questions about the status, rights and obligations of those working for such companies. Sometimes it can also be unclear which (collective) terms and conditions of employment apply.
The Arnhem-Leeuwarden Court of Appeal recently had to assess whether the collective agreement for food companies, which had been declared generally binding in the past, had previously been applicable to parties such as Picnic, Flink and Getir until they were granted dispensation from that collective labour agreement. Said parties operate ‘virtual shops’, where consumers can order groceries, but cannot physically shop.
The scope of application for the collective labour agreement for food companies had already been broadened in 2019, and moreover, the scope of the collective labour agreement already took into account ‘virtual establishments’ of shops since 2001. Regarding the scope of the collective labour agreement the court ruled that it is sufficient that a legal entity primarily operates a grocery store, either itself or in conjunction with another group company. If one group company only delivers, but the group company operating the shop cannot do so without that delivery, the delivering group company also falls under the collective labour agreement. All objections by Picnic and the other litigants about implausibility of the consequences of the applicability of the collective labour agreement and the practical impossibility of compensating 35,000 employees are dismissed by the Court of Appeal. The court had no doubt that its interpretation of the collective labour agreement is correct and as intended.
As a result of this conclusion, tens of thousands of (former) employees have to be compensated; a substantial and undoubtedly expensive task for the employers involved.
This case – once again – makes it clear that employers run the risk of being unintentionally obligated to apply a collective labour agreement. (International) employers wishing to enter the Dutch market would do well to identify, as far as possible, which collective labour agreements may be applicable and, in order to avoid large claims and complicated reparations, not to assume too lightly that a particular collective labour agreement does not have to be applied. Even if a group company only performs work that is “related to” work covered by the collective labour agreement, the employer may still be bound by the obligations of the collective labour agreement.
Do you have questions about a collective labour agreement applicable within your sector or would you like to exchange views? Please feel free to contact Gerard Zuidgeest, Jaap Harrijvan or one of our other employment law specialists.
Attorney at Law
Attorney at Law