The legal status of the management board and supervisory board in the pre-pack

The board

It is the board’s job to identify financial difficulties, administer them and anticipate them. If directors fail to do so, the company can accuse them of mismanagement. When bankruptcy is imminent, the management board has the task of submitting a request to the court for the appointment of a prospective administrator if that seems useful: in the request, the management board must make it plausible that the pre-pack offers added value for the company. This means that the pre-pack is expected to limit social damage, create the highest possible value for the joint creditors and preserve employment as much as possible. The management board informs the shareholders’ meeting prior to the request, unless an overriding interest of the company opposes this. The management board shall also provide the supervisory board with all information required for the performance of its duties in a timely manner. In the case of a structured BV (structuur-BV), moreover, the management board’s decision to request the appointment of a prospective administrator under the Continuity of Enterprises Act I will be subject to the prior approval of the supervisory board.

After the appointment of the prospective administrator, the silent preparation phase begins. This usually lasts 11 to 15 days. During this period, the board retains its powers as described in this blog and its information duties as mentioned above. In addition, under the Continuity of Enterprises Act I, the management board has the duty to provide the prospective administrator, both on request and on its own initiative, with any information which it needs to perform its duties or which it knows or should understand to be important in that context. If the management board fails to do so, this may impede the prospective administrator in the performance of his duties and, consequently, the pre-pack. Directors risk mismanagement resulting in possible liability. In the worst case, the prospective administrator may even apply to the court to be relieved of his duties.

The supervisory board

In the pre-pack, the supervisory board retains its powers as described in this blog, but is not given any additional powers in relation to the pre-pack or the intended receiver. However, the supervisory board does have to take a more active stance from the moment it becomes aware of the financial difficulties. This follows, among other things, from the Laurus decision in which the Enterprise Chamber ruled that the supervisory board should have asked more critical questions and acted more quickly when insufficient information was provided by the management board. The legislator has also confirmed that such action may be required of the supervisory board. For instance, under the Continuity of Enterprises Act I, the supervisory board itself can also apply to the court for a prospective administrator.

Exciting times: Wieringa helps

In practice, the appointment of a prospective administrator may be perceived as exciting by directors: the prospective administrator is watching the directors as they continue to operate the company and enter into any new obligations such as purchase and delivery obligations. If the company goes bankrupt, the receiver (who was first intended receiver) will presumably investigate whether the director is liable, for example because he entered into obligations he knew or should have known the company would not be able to fulfil.

As a director, it is therefore advisable – if only for your own peace of mind and comfort – to consult a lawyer who can look at things with you from a legal perspective and advise you. After all, this is not the task of the intended receiver as described in this blog. Even as a supervisory director, you may need guidance and advice on your role if the company finds itself in dire financial straits. Please feel free to contact us without obligation to discuss the possibilities.

AI and employment law

Artificial intelligence (AI) has become an integral part of the workplace. From scanning CVs to assessing performance and even making decisions about dismissal, AI is playing an increasingly important role. The European AI Regulation has been in force since 1 August 2025 and will come into force in stages. The first rules have been in force in the Netherlands since 2 February 2025. Moreover, the entire regulation must be implemented in the Netherlands legislation by 2 August 2027. This AI Regulation also has consequences for employment law. In this blog, we explain what this means for employers and what you need to bear in mind.

The core of the AI Regulation

The AI Regulation classifies AI systems based on risk. Therefor, the higher the risk of an AI system, the stricter the rules. There are three categories:

  1. Unacceptable risk: These systems will be banned from 2 February 2025. This concerns AI that can manipulate, discriminate against or otherwise harm people.
  2. High risk: Strict rules apply to these systems because they affect the safety and fundamental rights of people affected by the system, such as job applicants and employees. The obligations will apply from August 2026.
  3. Limited or minimal risk: This mainly concerns transparency. Users must be aware that they are dealing with AI. These rules will also apply from August 2026.

AI systems in the workplace

In labour law, the focus is mainly on high-risk AI systems. These systems support or make decisions that can have a major impact on career opportunities, income and equal treatment. Errors or biases in these systems can lead to unequal opportunities, discrimination or other forms of harm to those involved. It is therefore essential that strict rules apply to such AI systems.

The AI Regulation mentions the following systems:

  • AI systems for recruitment, selection and personnel management. Examples include tools that analyse CVs, screen job applications or assess candidates during tests.
  • AI systems that make decisions about promotions, performance reviews or even dismissal.

What does this mean for employers?

Employers have obligations when it comes to high-risk AI systems. Employers must exercise extra care. This means, among other things:

  • Working according to the instructions: Employers must take appropriate technical and organisational measures to ensure that AI is used in accordance with the instructions accompanying the systems.
  • Human supervision: There must be persons within the organisation who have the necessary skills, training and authority. This means that persons within the organisation must be trained to assess the risks of the AI system. If there is a risk, they must be able to assess when an AI system should be stopped or when a report should be made.
  • Keeping log files: The use of AI systems must be recorded. This includes who uses it, when and for what purpose.

Non-compliance with the AI Regulation can be costly for employers. Violation of the obligations can lead to high fines and legal proceedings. Consider, for example, a situation in which a job applicant disagrees with the rejection on the grounds of discrimination.

Role of the works council

The AI Regulation also assigns a clear role to the works council (WC). According to the Regulation, employee representatives and employees have a right to information. This right to information relates to the application of a high-risk AI system before it is used in the workplace. In addition, the Works Councils Act (WOR) also provides for information rights and even advisory rights for the works council. This right to be consulted often comes into play as soon as the employer intends to implement an AI system, allowing the works council to contribute ideas and advice at an early stage.

Conclusion

AI offers opportunities, but also entails risks for employers. The AI Regulation requires employers to exercise greater care. In practice, we have noticed that working with AI systems in the workplace often raises questions or can cause discussion. Are you unsure whether your AI systems comply with the rules, or would you like to know how to use high-risk AI systems safely? Please feel free to contact us. We are happy to assist you.

In the next blog, we will discuss the impact of AI on dismissal law.

Employers take note: these are the major employment law changes in 2026

What will change for employers in 2026? We have listed the main changes and legislative proposals in this blog.

Changes in 2026

Minimum wage up

Like every year, the minimum wage is also rising this year. For employee aged 21 and above, a minimum wage of €14.71 per hour will apply from 1 January 2026. From 1 July 2025, it was €14.40 per hour. The new minimum hourly wage for employees aged 20 or younger can be found on the central government website.

Home working and travel allowance up

The maximum untaxed allowance for employees working from home will increase from €2.40 to €2.45 per day from 1 January 2026. The maximum untaxed travel allowance remains €0.23 per kilometre in 2026, as in 2025.

General remuneration cap raised (Top Income Standardisation Act)

The general remuneration ceiling within the meaning of the Wet normering topinkomens ( WNT) will also go up again next year. This act sets limits to the maximum remuneration of top officials in the (semi)public sector. For 2025, the maximum remuneration was set at €246,000. For 2026, the general remuneration maximum has been set at €262,000.

Free space working costs scheme remains the same

The WKR’s free allowance will remain at 2% in 2026. In 2027, the percentage will rise to 2.16%. This applies to the wage bill up to €400,000. For the wage bill above that, a percentage of 1.18% will apply.

Legislative proposals in 2026

Furthermore, a number of bills are on the way. These laws are not yet finalised, but are expected to come into force in 2026.

Bill to limit compensation scheme for transitional allowance in case of long-term illness

Since 1 April 2020, employers have been able to receive compensation for transitional compensation in case of dismissal due to long-term disability. This bill stipulates that from 1 July 2026, this compensation scheme will be limited to small employers (fewer than 25 employees). Employers with 25 or more employees will thus no longer be able to receive compensation for the transition allowance when an employee leaves employment after two years of illness from 1 July 2026. However, the Council of State is critical and advises that the bill should only be introduced if the full transition compensation in the second year of illness is scrapped.

Bill Clarifying assessment of labour relations and legal presumption (VBAR)

The VBAR Act replaces the DBA Act and aims to clarify the distinction between employees and self-employed persons, thereby reducing false self-employment. This new law introduces an assessment framework of the authority criterion to assess whether an employment contract exists. The VBAR Decree fleshes out this assessment framework. The Bill was submitted to the House of Representatives on 7 July 2025 and the Decree was submitted for internet consultation on 12 September. The entry into force of the Act and the Decree is expected to take place on 1 July 2026.

The legal position of the management and supervisory board under WHOA

What does the board do?

The board may offer an agreement

Under the WHOA, the board may offer an agreement to (some) creditors if it is reasonably likely that the company will not be able to continue paying its debts. The arrangement provides for a change in the rights of creditors and shareholders (e.g. amendment or termination of an agreement) and can be declared binding (homologated) by the court. The board does not need the consent of the general meeting for the offer, submission for homologation and execution of an agreement. This prevents, as far as possible, shareholders from obstructing the process by exercising their shareholder rights.

The board may request a cooling-off period, an observer or restructuring expert

To prepare the arrangement in relative calm for presentation to creditors, the board can ask the court to declare a cooling-off period. This is a period of up to four months during which creditors may not recover from the company. This period can be extended, provided that the total period including extensions cannot exceed eight months.

When declaring a cooling-off period, the court may appoint an observer to supervise the establishment of the arrangement, with an eye to the joint creditors. The observer informs the court as soon as it becomes clear that it will not succeed in bringing about an agreement or if the interests of the joint creditors are harmed.

If the board does not want to prepare an agreement itself, it can apply to the court through a lawyer to appoint a restructuring expert.

The directors have a duty towards both the restructuring expert and the observer to provide all information, in particular about facts and circumstances which they know or ought to know are important to the observer or restructuring expert for the proper performance of his task. Directors shall also provide the necessary cooperation to the observer/restructuring expert.

What does the supervisory board do?

Aim for an agreement

If it is reasonably plausible that the company will not be able to continue paying its debts, the existing powers of the supervisory board intensify. If continuation is no longer possible, the supervisory board should push for a plan for reorganisation, restructuring or liquidation, for example under the WHOA.

Supervision and advice

If the management board offers a composition to the creditors, the supervisory board may be expected to have critically and proactively analysed the composition and to assist the management board with advice, if necessary by bringing in its own advisers (e.g. lawyers) to form an opinion on the agreement to be offered.

If the management board wants to request an observer or restructuring expert, it is up to the management board to discuss this with the supervisory board. If the court subsequently appoints an observer or restructuring expert, the supervisory board members must provide it with all information, especially about facts and circumstances which they know or should know are important for the proper performance of the observer’s or restructuring expert’s duties.

In principle, the statutory and statutory powers of the supervisory board must still be respected in the event of an agreement under the WHOA. Directors who fail, for example, to ask the supervisory board for required approval run the risk of being held liable if the company suffers losses as a result. Thus, the provisions of the articles of association that make the management board’s decision to offer an agreement subject to the approval of the supervisory board should in principle be followed.

Are you a director or commissioner and want advice on your role in WHOA? Feel free to contact us. We will be happy to advise you.

New approval requirement and stricter rules for temporary employment and staffing agencies from 1 January 2027

From 1 January 2027, the rules for hiring out personnel in the Netherlands will change. With the introduction of an admission requirement for suppliers in the Provision of Personnel Admission Act (Wet toelating terbeschikkingstelling van arbeidskrachten (Wtta)), the government wants to increase the quality and reliability of the temporary employment sector, tackle abuses and improve the protection of flex workers. What are the main changes and what does this mean in practice?

Admission duty

From 2027, only certified companie will be allowed to supply workers. This means that every supplier must be in possession of a licence or provisional licence. The conditions for this licence are:

  • Registration in the trade register. This is already mandatory.
  • Submission of a recent Certificate of Conduct (VOG).
  • Payment of a deposit of €100,000 on admission and €50,000 on provisional admission, unless there is an exception.
  • Demonstrable compliance with a framework of standards, consisting of requirements in the areas of labour law, social security and taxation.

The deposit is not required for companies that have been continuously registered in the commercial register for the four years prior to 1 January 2027 with the registration of providing workers as their business activity, demonstrably provided workers in that period and that submit a statement from the Tax and Customs Administration, no older than three months at the time of application, showing that the taxes and contributions due have been paid. Furthermore, a general exemption from the license requirement is possible under certain circumstances for employers who provide workers on a limited basis.

The new body the Dutch Lending Market Authority (NAU) will decide, among other things, on authorisations and exemptions.

Housing and registration

The Wtta further regulates that housing for labour migrants may only be offered by certified or authorised landlords. In addition, suppliers must check whether workers made available are registered in the Basic Registration of Persons and inform them of this obligation.

What does this mean in practice?
The Wtta will come into force on 1 January 2027, but suppliers must register with the NAU before that date if they want to continue supplying workers. Unauthorised suppliers and hirers who use unauthorised suppliers may be fined. The Netherlands Labour Inspectorate will start enforcing this from 1 January 2028.

Want to know what these new obligations mean for your organisation? Feel free to contact us if you need advice or guidance following these changes. We will be happy to help.

Employer Acted Incorrectly in Dismissing Employee Who Showed Up to Work Drunk

In September 2024, an employer decided enough was enough. An employee had once again shown up to work under the influence of alcohol — and it wasn’t the first time. The signs were clear: the smell of alcohol, arriving late, calling in sick at critical moments, and complaints from colleagues. Despite previous conversations, warnings, and even a support program funded by the employer, the behavior persisted. When it became evident that the employee had consumed alcohol before his shift and was intoxicated at work, the employer took action and dismissed him on the spot.

The employee disagreed with the summary dismissal and took the matter to the subdistrict court. The court ruled in favor of the employer, stating the dismissal was legally valid. However, the employee appealed to the Court of Appeal (ECLI:NL:GHARL:2025:6166), arguing the dismissal was unjust and that he should be reinstated. The Court of Appeal sided with the employee.

Employer didn’t know, but alcohol addiction played a role anyway

When assessing whether there is an urgent reason for dismissal, the employee’s personal circumstances must be considered — including illness. In this case, the employee stated that he was suffering from alcohol addiction at the time of dismissal. Although the employer was unaware of this, the Court held that all relevant circumstances must be taken into account, even those unknown to the employer at the time.

The Court found sufficient evidence that the employee was indeed struggling with alcohol addiction, which qualifies as an illness. He had sought help before the dismissal and was admitted for intensive treatment shortly afterward. The Dutch Employee Insurance Agency (UWV) also confirmed that the employee was unfit for work at the time of dismissal.

Moreover, the Court noted that the employer likely knew more than it claimed. In a prior conversation, the employer had acknowledged that alcohol was not a solution to the employee’s problems. The incidents — such as consistently arriving late, smelling of alcohol, and a deteriorating appearance — closely matched the characteristics of addiction as described in the STECR guideline “Addiction and Work.”

Although the legal prohibition on dismissal during illness generally does not apply to summary dismissal, illness remains a significant factor that must be considered when determining whether there is an urgent reason for dismissal.

Because addiction is often denied, employers need to be extra vigilant

The Court ruled that the employer should have suspected that more was going on than a one-off alcohol issue. Therefore, a higher level of care was expected. While the Court acknowledged the employer’s efforts and intentions to act responsibly, it concluded that the employer should have been more critical.

The Court dismissed the argument that the employee should have disclosed his addiction. It is widely known that individuals with alcohol problems often deny their condition, do not perceive it as problematic, and feel ashamed to talk about it. The employee also indicated that he felt pressured to return to work fully, especially since the employer had made it clear that its patience and efforts were not unlimited — and that it expected results in return.

The Court concluded that the employee’s behavior on September 16, 2024, was a result of illness. This means the legal prohibition on dismissal during illness applied to the termination of the employment contract. While this prohibition does not typically apply to summary dismissal, illness is still a relevant factor that must be considered when assessing whether the dismissal was justified.

The Court ruled that the summary dismissal must be annulled andthe employment contract was reinstated as of September 19, 2024. The employer is required to pay the employee’s salary from that date, including statutory increases and interest. Since the employee is ill, he does not need to return to work immediately. The employer must howevere actively support a careful reintegration process.

What can you learn from this?

The law imposes strict requirements for the validity of summary dismissal. The consequences for the employee are severe. There is animmediate loss of employment, and typically no entitlement to salary, transition compensation, or unemployment benefits. That’s why it’s crucial for employers to carefully assess whether summary dismissal is truly appropriate. Extra vigilance is required in cases involving alcohol-related issues.

In a previous blog (“Judged Too Quickly: How a Suspected Theft Cost the Employer Dearly – Wieringa Advocaten“), we already emphasized the importance of seeking proper legal advice. An unjustified summary dismissal can have serious consequences.

Feel free to contact us. We’re happy to help you determine the right approach for your situation.

The legal position of the management board and the supervisory board in the conclusion of a bankruptcy agreement (faillissementsakkoord).

As part of the blog series: the legal positions of the corporate bodies of private limited companies in difficult financial circumstances, this blog discusses the legal position of the management board and the supervisory board in the conclusion of a bankruptcy agreement (faillissementsakkoord).

What does the board do?

Represent

In the event of bankruptcy, the board retains the authority to represent the company, including in the conclusion of a bankruptcy agreement (faillissementsakkoord). The conclusion and content of the bankruptcy agreement involve many legal aspects. For example, the general meeting could try to thwart the board from offering a bankruptcy agreement by refusing to give its consent for the bankruptcy agreement to be offered. There is debate in legal literature about whether the board can represent the company independently in such a situation. A lawyer can advise the board on the steps it can take in that case. It is therefore wise for the board to seek the assistance of a lawyer when concluding a bankruptcy agreement.

Informing and notifying

There is no dispute that the board’s duty to provide information to the shareholders’ meeting continues to exist in the event of bankruptcy. However, this duty is more limited than outside bankruptcy, because the power to manage and dispose of the assets of the company in bankruptcy lies with the trustee. The scope of what must and must not be reported is determined by the open standard of reasonableness and fairness. A serious interest of the company may still prevent the requested information from being provided to the shareholders.

Directors are also obliged to attend the verification meeting if they are summoned by the trustee. At the request of the bankruptcy judge, they must provide all information about the causes of the bankruptcy and the state of the estate. The directors also have this duty to provide information to the trustee. It is important for a director to know that the duty to provide information is not limited to the information he has received in his capacity as a director.

A director may oppose the proposal of a bankruptcy agreement offered by the trustee

A situation may arise in which the trustee considers it to be in the interests of the creditors to conclude a bankruptcy agreement. If the board considers this to be undesirable, but the trustee persists, the board may object to the trustee’s proposal for the bankruptcy agreement to be confirmed by the court-appointed trustee. For example, the board could argue that it is in the interest of the company to avoid unnecessary estate costs.

What does the supervisory board do?

Supervision and advice

Even in the event of bankruptcy, the supervisory board continues to supervise the board of directors and advise it. As the role of the board of directors is limited, the role of the supervisory board is also reduced.

Right to information

Nevertheless, the supervisory board is still entitled to timely and necessary information from the management board. For example, the supervisory board supervises the management board’s (intention to) offer a bankruptcy agreement and advises the management board in this regard.

Other (statutory) powers

It is important to note that the statutory (approval) powers of the supervisory board remain in force in the event of bankruptcy. Violation of these powers may have consequences for the legal validity of a management decision or an agreement concluded by the management board. If, for example, creditors know that the required approval of the supervisory board is lacking, it may be unacceptable to hold the company to the agreement.

In addition, the supervisory board may represent the company in a bankruptcy agreement if all directors are also unsecured creditors of the company. After all, a director should not participate in deliberations and decision-making if he has a direct or indirect personal interest that conflicts with the interests of the company.

Are you a director and would you like to offer a bankruptcy agreement? Or are you a supervisory director and would you like advice on your role in the bankruptcy agreement? Please feel free to contact us. We will be happy to advise you.

What if the works council takes too long to give its advice?

Under Section 25 of the Works Councils Act (WOR), the works council has the right to advise on important decisions made by the employer. These include reorganisations, mergers or acquisitions.

As an entrepreneur, you want clarity quickly. However, it can happen that the advice from the works council is a long time coming. How long can this take? And when can the entrepreneur proceed with their decision?

The deadline for giving advice

The law does not specify a fixed deadline within which the works council must give advice. However, the works council and the entrepreneur can agree on this together. The legislative history shows that the works council must give advice within a “reasonable period”.

What constitutes a reasonable period depends on the circumstances of the case. The following factors, among others, play a role in this:

  • the moment at which the works council received all the necessary information;
  • the complexity of the decision;
  • any external pressure, such as in the case of a bidding or tendering procedure.

The entrepreneur may also ask the works council to give its advice before a certain date. If the works council considers this period to be too short, or if it needs additional information, it must report this in good time and request a postponement. If the works council agrees to the proposed date, the entrepreneur may hold the works council to it.

What if the works council is late?

If the works council does not respond within the given deadline, this may have consequences. For example, the works council may not be able to appeal against the entrepreneur’s decision if it has not issued its advice in time. An entrepreneur may implement his decision if the works council knew that there was urgency but did not request a postponement.

Important to know: no advice is not automatically negative advice. The Zwolle-Lelystad District Court (ECLI:NL:RBZLY:2005:AU7236) ruled that if the works council deliberately does not issue any advice, Articles 25(5) and (6) of the WOR do not apply. In that case, the entrepreneur does not have to wait a month to implement his decision.

Limits to a reasonable period

The Amsterdam Court of Appeal (ECLI:NL:GHAMS:2012:BW0499) emphasized that the works council itself is responsible for requesting information in good time. If the works council fails to do so in time, it cannot later invoke a lack of information as a reason for delay.

In a recent ruling by the Amsterdam Court of Appeal (ECLI:NL:GHAMS:2025:1794), the Enterprise Chamber clarified that an entrepreneur does not have to wait indefinitely. The entrepreneur can no longer be expected to postpone his decision if he has given the works council sufficient opportunity to advise, but the works council does not respond within a reasonable period of time. In this regard, it is essential that it is clear to all parties in advance when the advice must be issued at the latest, why that moment is necessary and what the consequences are of advising too late.

Practical advice for employers

Avoid problems by making clear agreements with the works council in advance.

  • Agree on a clear deadline with the works council.
  • Record why that deadline is necessary.
  • Communicate in good time about the consequences of late advice.

Has the entrepreneur acted carefully and given the works council sufficient time? Then he may take and implement the decision, even if the advice is not forthcoming.

In conclusion

The works council’s right to advise is an important instrument for employee participation. At the same time, the entrepreneur has the right to proceed. A good balance requires clear communication and agreements on deadlines.

Do you have any questions about the reasonable deadline or the consequences of late advice? Please feel free to contact us. We will be happy to help you find a suitable approach.

Update: postponement of wage transparency bill. What does this mean?

The introduction of the Gender Pay Transparency Directive Implementation Act has been postponed. On 7 June 2023, the European Wage Transparency Directive entered into force. The implementation of the Directive was initially supposed to be completed by 7 June 2026. However, on 15 September 2025, the minister of social affairs and employment informed that this timeframe is not feasible. The minister indicated that more time is needed to shape the national regulations and their implementation so that employers can implement the obligations effectively and with the least possible administrative burden.

The adjusted timeline is therefore as follows:

  • Before the end of 2025: presentation of the bill to the Council of State.
  • In 2026: parliamentary debate.
  • No later than 1 January 2027: the intended date of entry into force in the Netherlands.

Back up for a moment: what does the Directive even mean?

In our earlier blog, we have already discussed in detail the main obligations for employers under the Directive. Below, we briefly recapitulate these obligations:

Obligations for employers

  • Wage structures: employers should establish transparent, objective and gender-neutral wage structures. These structures should clarify how jobs are valued so that categories of equal or equivalent work can be identified. This can be used to determine whether women and men are paid equally within these categories.
  • Employee information obligation: employers with 50 or more employees must inform employees of the average wage within the category of equivalent work. Based on this, employees can check whether they earn more or less than the average within their category.
  • Duty to inform job applicants: employers must inform job applicants about the salary or pay scale of the vacancy even before the interview. During the job application, employers should not ask the applicant about the previously earned salary. This may in fact perpetuate a pay gap.
  • Reporting requirement: employers with 100 or more employees are required to report on any pay gap.
  • Pay review: in case of a pay gap of 5% or more that cannot be objectively explained or remedied within six months, the employer must conduct a pay review. This is a more comprehensive analysis of the gender pay gap, designed to further identify, remedy and prevent it.

Role for Works Council (OR) and reversal of burden of proof

  • Role for the Works Council: the Works Council (OR) has an important role to play. For instance, the Works Council has a right of consent in determining the objective, gender-neutral criteria for the transparent pay structures and in determining the measures to be taken in case of an unjustifiable pay gap.
  • Reversal of burden of proof: does an employer not comply with the above-mentioned transparency obligations or reporting obligation? In that case, a legal presumption of wage discrimination applies and the employer will have to prove that the rules on equal pay were indeed complied with.

What does the changed timeline mean for employers now?

The reporting requirement for employers with 150 or more employees will apply for the first time for calendar year 2027 (instead of 2026). Reporting is now due in 2028. The reporting requirement for employers with 100 to 149 employees remains unchanged and starts on 7 June 2030.

Employers with 150 or more employees will thus have to prepare for reporting for calendar year 2027 as early as 2026. Before then, the wage structures with the different categories of equal or equivalent work must be established. The Works Council has a right of consent on the objective criteria to be used to determine the wage structures. The Works Council also has a right to inspect the methods used in preparing the report and a right to be consulted prior to the submission of the report.

Employers would therefore do well to take advantage of the postponement of this directive and use this extra time to get their records in order to establish pay structures.

Judged too quickly: how an alleged theft cost the employer dearly

An employee with 36 years of service at a sausage factory decided to take a bag full of sausages home after one of his shifts. As he did not pay for the sausages, the employer intervened immediately upon discovering the incident. The employee was instantly dismissed for (alleged) theft. A court case followed in which he challenged his dismissal and claimed compensation. On paper, it seemed like a done deal. Yet both the subdistrict court and the court of appeal ruled that there was no urgent reason for the dismissal. The employee was awarded over two tons in compensation.

Taking sausages home had become a custom, not theft

The employee in question took home some sausages on 3 May 2024. On 6 May 2024, he was dismissed immediately. The dismissal letter stated, among other things, that the employee had taken sausages in a plastic bag after his shift without paying. The letter further noted that a crate is normally present with sausages that employees are allowed to take home free of charge, but this crate was not there on 3 May 2024.

The employee did not want to return to the workplace and claimed fair compensation. In first instance, the subdistrict court awarded him no less than €150,000 (ECLI:NL:RBNHO:2024:8684). The court ruled that there was no urgent reason for dismissal, as required under Sections 7:677 and 7:678 of the Civil Code. The employer did not have a clear policy regarding taking sausages home, and it appeared plausible that there was an established custom allowing employees to take home unsellable sausages.

The employer appealed the ruling (ECLI:NL:GHAMS:2025:2023), maintaining that the dismissal was legally valid. According to the employer, sausages were not allowed to be taken home without payment. There was no so-called “crate habit” allowing employees to take home unsellable sausages. The internal regulations also stated that theft was prohibited and that proven theft would result in immediate and irrevocable dismissal.

No pressing reason: the employer’s tolerated policy

The court of appeal ruled that there was no urgent reason justifying the dismissal. It sided with the employee, noting that the employer had a policy of tolerance. Evidence showed that a crate of sausages was regularly available at the hygiene lock for employees to take home—a practice that had been in place for years.

Although the company’s rules prohibited taking products without payment, in practice this was not treated as a violation. As a result, the alleged theft by the employee could not be established.

Furthermore, the court of appeal found that the employer had not sufficiently considered the employee’s personal circumstances. At the time of dismissal, he was 59 years old and had been employed for nearly 37 years. Apart from two official warnings regarding the smoking policy, he had an exemplary employment record. Given his age and long service, the financial impact of the dismissal would be significant.

A bag full of sausages ends up costing the employer hundreds of thousands of euros

The employee was ultimately awarded over €200,000 in compensation. In addition to fixed damages of €22,076.30 gross and transitional compensation of €52,619.01 gross, he was entitled to fair compensation of € 150.000 gross. The reason? There was no urgent cause for immediate dismissal, meaning the employer acted seriously culpably.

The court of appeal determined that fair compensation of €150,000 gross was appropriate. In setting this amount, the court considered all circumstances of the case, in line with the principles established by the Supreme Court in the New Hairstyle judgment (ECLI:NL:HR:2017:1187). (If you want to know more about the New Hairstyle judgment: read the following blog: New Hairstyle: the outcome – Wieringa Advocaten).

The court of appeal also took into account that the employee had served the company satisfactorily for 36 years and had only received two warnings, both related to the smoking policy. It was plausible that he would have continued working for the employer until his planned retirement on 13 March 2032.

Lessons for employers

A legally valid summary dismissal for theft must meet very strict requirements—it is truly a last resort. After summary dismissal, an employee loses entitlement to wages, transitional compensation, and often unemployment benefits. Because the consequences are so severe and errors can be costly, it is crucial for employers to understand their legal position, especially when there is no clear policy regarding taking items from the workplace.

If you find yourself in a similar situation or want to prevent such costly mistakes, contact us. We are happy to advise on the correct legal steps and help ensure any dismissal is handled properly.