Supreme Court Clarifies Right to Continued Payment of Wages Pending Trials

Precedential Decision by Judiciary or Regulatory Agency

On July 13, 2018, the Supreme Court of the Netherlands ruled that an employer has no obligation to pay wages between the period after a dismissal for urgent cause is voided and the moment the appellate court overrules that decision. After a dismissal for urgent cause is declared void, the employment contract can be reinstated upon the employee’s request, and the obligation to pay wages revivifies until the legal end of the employment contract. With this ruling in hand, the employer can deny the employee his right to payment of wages if the employment contract ended only after appeal.

Supreme Court Rules Partial Termination Equals Partial Transition Payment

Precedential Decision by Judiciary or Regulatory Agency

On September 14, 2018, the Supreme Court of the Netherlands held that employers who convert an employee’s full-time position into a part-time position must pay a transition fee for the hours the employee will no longer work since employment contracts can be terminated only as a whole. However, if special circumstances lead to a substantial and structural decrease in working hours, partial dismissal coupled with partial transition payment should be possible so the employee will not miss out on part of the transition payment if the employment contract eventually is terminated (in full) at a later date.

The Data Protection Authority Has Started Control and Enforcement of GDPR

Upcoming Deadline for Legal Compliance

On July 17, 2018, the Data Protection Authority (DPA) announced the immediate start of an exploratory study on compliance of the General Data Protection Regulation (GDPR) in the private sector, based on a random sample of 30 large organizations from 10 private sectors, focusing on the implementation of the data-processing register. Because a large part of the Dutch government bodies have not yet fully complied with the GDPR, the DPA has given them time to fix any shortcomings. While the same goes for the private sector, the DPA indicated that after given time, non-compliance will result in an incremental penalty or high fines.