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Originally Posted by antihero The legal working week is 40 hrs/week in the Netherlands. It is 36 hours for universities and other government funded institutes. . |
Its actually quite a bit different. If the moderators allow me to go wildly off topic I will explain. I think some members might find this interesting, incredible, amusing, unbelievable, possibly all of the above. But the whole 40/36 hour week in the Netherlands is a truly unique Dutch phenomena.
Strictly speaking there is no legal working work week as such. You can sign of for any number of hours per week you and your employer agree to. My dad was a partner in a law form and everybody had to and still does 44 hours per week. Everybody is to show up the whole week and on Saturday morning!
The only legal constraint being the actual number of hours you are allowed to work per day, per week etc. That's actually mostly a labour law regulated thing and there are some very specific rules for say truckers, pilots, train drivers etc.
What is true that from the late 60s onward most people who worked, were on 5 day, 8 hour per day week. Bear in mind, in the Netherlands everything, such as your contributions to state and company pension funds, unemployment benefits, other social securities, health insurance premium and other benefits is all based on your gross salary. So having one norm was for various reasons very handy.
In the late 70s, early 80s the Netherlands experienced a period of economic downturn. We saw high unemployment rates. In true Dutch fashion, the Dutch government, the employer representative organisations, the unions, the various politicians came up with a joint solution. The so called ATV was introduced in 1982 if I recall correctly. ATV stands for ArbeidsTijdVerkorting, roughly translated as "shortening of working hours". The concept being that if all those who did have job worked a few hours less every week, those hours would be distributed amongst the unemployed and subsequently more people could be employed!
What happened is that for many in the Netherlands the 40 hours working week was adjusted to 36 hours per week. That also meant your gross salary was reduced by 10%. However, as your gross salary includes a whole bunch of stuff other then salary, often paid by the employer (e.g. health insurance) for most it meant a nett reduction of maybe only 5%. So you got a lot of extra free time at the expense of a moderate decline of nett income.
Many industries and most (not all) governmental bodies, including schools, universities adopted this system. Very often, the smaller type of companies did not adopt it. But just about all big companies, from Shell, to Unilever, all banks and insurances adopted this system.
How it was implemented varied. Some companies allow staff to work 4 days of 9 hours. Some companies kept working 40 hours per week, but you gained a few extra days off per quarter etc.
With me so far? Lets move on to how much your average Dutch guy/girl actually works!
The Netherlands has a legally determined minimum number of holidays for every employee.
In those days it was slightly different, but these days based on working 40 hours a week for a year, the legal minimum amount would be 20 paid holidays per year. If you work 20 hours per week/year it would be 10, ie. pro rate adjusted.
You will find very few Dutch companies adhere to the legal minimum only. Most will be adding 3-6 days for a full time employee.
Let me give a real life example: me! During the eighties I worked for various companies that never participated in this ATV concept. So I had the standard 40 hours per week and a few extra days over the legal minimum. I joined Ericsson the Netherlands in 1991. At the time we were probably around 3500-4000 employees, half of that R&D.
My contract was for 36 hours, I got 6 holidays over the legal minimum and because the 36 hours came from the ATV arrangement, I also got around 8 paid ATV days on top of that
So I had approx 35 fully paid days per year holiday! The ATV days could be carried over a maximum of one quarter. So you had to take two days off per quarter or you would loose them!
Confused? Let me add some more insights into the Dutch system
By law, every employee is entitled to 8% 'vakantietoeslag' or Holiday premium. How does that work then? The holidays including ATV dagen are already fully paid??
True, this is just on top of that! it is literally a premium you get to pay for your expensive holiday!
Everybody in the Netherlands who is an employee, gets paid 12 monthly salaries + 8% holiday premium of the total 12 months on top of that. Most companies pay the holiday premium in one lump sum in April or May. So it can be used to book your summer holiday!
In some companies and industries there is also a phenomena known as "dertiende maand", or thirteenth month. This is not a legal requirement and is up to individual companies to decide. It is a full additional month on top of all of the above. Part of your total compensation package.
So for instance, my eldest son, works for Glencore. I think he has straightforward
-40 hours full time employment.
-25 days paid holiday
- 8% holiday premium (legal requirement)
- thirteenth month (Company specific)
- Bonus (company specific)
So effectively his 'quaranteed' salary is (nearly) fourteen months salary in one calendar year!
What about overtime I hear you ask? Or are the Dutch to busy spending their money and using up their copious amounts of holidays?
Roughly speaking Dutch employees fall into one of two catergories. Those who are entitled overtime pay out and those who have an 'all-in' contract.
If you are entitled to overtime that will be stipulated in your contract and it can vary by sector and industry. A typical arrangements could be that during weekdays the first two hours above the regular 8 are paid out at 130% and the subsequent hours at 150%. Hours worked during weekends and or official holidays would be paid at 200%.
Pay out could be monetary, or what we call "tijd voor tijd", time for time. So instead of getting money you would get extra free hours/day to compensate for the overtime.
If you are on an all in contract, you would expect to work roughly your normal hours, but in case you need to work more you would not be compensated in any form shape or format.
To put things in context. At Ericsson I believe about 75% of the total workforce was on all in contracts. So its not something that is only applicable to upper management. Many types of jobs would fall under this regime.
I hope the above provides some historical context of how this 36/40 hours came about. Have been away from the Netherlands for quite some time, so I'm not really current anymore. What I can say is that during the last ten years the whole ATV concept is being dismantled. What is left is most likely companies and or parties who now regard a normal working week as less then 40 hours. In particular in the non profit sector. The compensation of the loss or disappearance is typically adjusted through varies mechanism. So Ericsson did away with the ATV days a long time ago. But the 8% holiday premium, thirteenth month, legal minimum paid holiday still exists!
To summarise, plenty of time to fix your car, or paint the kitchen, screw an Ikea sofa together.
Completely off topic, sorry for that, but I hope some of you enjoy reading about this never the less
Jeroen