Netherlands: EUR 1M fines for failing to comply with short-time working

The outgoing Minister for Labor and Social Affairs, Piet Hein Donner, acknowledged that 149 Dutch businesses – without giving names – broke short-time working regulations. The fines inflicted go up to €1 million in total – which the economic and financial press deem too low. In the end, 6,800 businesses appealed to short-time working (Deeltijd WW), created in April 2009 to avoid layoffs during the economic crisis and avoid workforce shortages at the time of the recovery. The system, about to be dismantled since July 1st, will be completely abolished on July 1, 2011 (see our dispatch No. 100232).  It affected a total of 70,000 employees, mostly in the industry. Officers from the Central Planning Bureau (CPB) denounced, in September, a system leading to abuses (see our dispatch No. 090799). Some businesses, including DAF Trucks, were suspected of massively appealing to short-time working without ‘saving’ their workforce. And this practice led to full time work partly subsidized by the unemployment insurance.
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stem leading to abuses (see our dispatch No. 090799). Some businesses, including DAF Trucks, were suspected of massively appealing to short-time working without ‘saving’ their workforce. And this practice led to full time work partly subsidized by the unemployment insurance.

Planet Labor, July 13, 2010, No. 100558 – www.planetlabor.com

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