No Entitlement to Overtime Bonus for Mandatory Training outside Scope of Working Hours

No Entitlement to Overtime Bonus for Mandatory Training outside Scope of Working Hours
Date: 08-04-2022
Year of publication en number of publication: 2022 / 461
Reference: Court of Appeal of Arnhem-Leeuwarden, 29 March 2022, ECLI:NL:GHARL:2022:2449
Decision

An employer who, under the CLA. was obliged to offer his employers training during working hours, was obliged to continue to pay the wages during the training, but not to pay the overtime bonus on top when this training takes place outside the scope of the standard working hours. An important factor was, that the employee was allowed to choose whether to attend the training during or outside the standard working hours.

An employer who had signed a CLA with a trade union for the employees in his company, had agreed in this CLA that, once every three years, employees would receive a budget of EUR 1,200 which the employees themselves could use for the retention and further development of their employability. It was agreed that, under certain conditions, the training time would be regarded as working time. In that case, an employer also continues to pay the wages during the training period. The trade union, however, also wanted the employer to pay the overtime bonus if an employee would attend the training outside the scope of the normal duty roster.
The Sub-district Court granted this claim, but after the employer had lodged an appeal, the Court of Appeal ruled otherwise.
The Court of Appeal stated first and foremost that time spent on the training is working time within the meaning of the Working Hours Act, but that this does not also make it working time within the meaning of the terms of the employment conditions that the parties have agreed upon. Based on an interpretation of the CLA in which the wording of the CLA was decisive and not the CLA’s parties’ intention, the Court of Appeal concluded that training time may be treated differently from normal working time as regards the method of remuneration. The basic principle of the CLA is that the employer and the employee are jointly responsible for the retention and further development of the employee’s employability. The Court of Appeal found that it was not in compliance with this principle that an employee, who is free to choose whether he/she wants to attend the training during or outside the normal scope of the duty roster, can pass on his/her choice for the latest to the employer by claiming an overtime bonus.


Comments

Despite the fact that the Court of Appeal’s judgment concerns the interpretation of a specific provision in a company CLA, the judgment is nevertheless interesting in considering the fact that a new law is planned to enter into force as of 1 August 2022, which will also provide that, under certain conditions, training should also take place during working hours.
The law is intended to implement a European Directive.
From the moment of entry into force of that law, training shall be for free and take place during working hours if it concerns training necessary for the performance of the employee's function. This shall also apply if it concerns training needed to continue the employee's employment contract, if the employee's position will become obsolete, or if the employee will no longer be able to perform his/her job, be it under the only condition that all of this can also be reasonably expected from the employer.
If the situation requires that an employee has to attend a training free of charge and during working hours, a provision, obliging the employee to repay the training costs if he/she terminates the employment contract within a certain period of time after completion of the training or if he/she fails to successfully complete the training, will not be legally valid.
It should be borne in mind, however that, in practice, training cost clauses mainly concern training courses allowing the employee to obtain a higher position.
Such training costs clauses will remain legally valid after 1 August 2022.