Non-Compliance With Minimum Wage & Holiday Allowance Leads to High Fines

Recently, a Hague employment agency has been fined €229,850 for non-compliance with the Minimum Wage and Minimum Holiday Allowance. Additionally, two executives of the agency were fined €108,000 and €44,050 respectively. Also, the agency has to still pay affected workers that have not received their wages and holiday pay. Inspectorate SZW (Social Affairs Inspectorate) has finalized the long-term investigation successfully.

Control

In June 2012 the SZW did an audit of a Hague employment agency. It was expected that the owners of the office had implemented the laws and regulations loosely. From that moment inspectors began an extensive administrative investigation into violations of the Minimum Wage and Minimum Holiday Allowance. Recently, both the company, and the two executives have been fined.

Research

The investigation concerned the incorrect payment of 29 employees who worked on behalf of the agency. Thus, six people were underpaid because they were not paid their vacation days. For 15 employees, the employer was unable to produce documents that it paid wages, paid holiday allowance and showed the hours worked. Incidentally, all 29 employees did not receive holiday pay even though they were entitled to it.

From the outset, the Inspectorate to the investigation also involved the managers of the company in the research. In this way, he could fine the company and the executives for violating the law. The employment agency itself has been fined €229,850. One executive has been fined €108,000 and another a fine of €44,050. The difference in the amount of the fine of the two executives has to do with the type of offense. In addition, the agency needs the 29 underpaid workers still concerned to be paid their wages and/or holiday allowance. If the company does not do this, the Inspectorate may impose a penalty payment to the agency that can reach €40,000 per employee.

Fraud

Fraud involving cash payments has become more difficult since January 1, 2016. Since then the law states that the Minimum Wage and Minimum Holiday Allowance should be paid by bank. The Inspectorate SZW can directly fine those who do not pay by bank.


Source: http://www.salarisnet.nl/Wet-Regelgeving/Algemeen/2016/4/Niet-naleven-Wet-minimumloon-en-minimumvakantiebijslag-leidt-tot-forse-boetes-2796648W/