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					Compandben SA                                                 5172acc7-4b67-48c3-a4d9-f80792c707c2.xls




                            Market Conditions Summary - Netherlands
                      LAW                                                    MARKET
                                                                             general information



Recruitment and Contract
                      Probationary period is maximum 2 months for a
                      standard indefinite contract, or a contract of at least
                      2 years. During probationary period the contract may
                      be ended without notice. If the contract is for less
                      than 2 years then the probationary period is only 1
                      month. The probationary period must agreed to in
Probationary Period   writing to be valid.                                    As law
Probationary Period   Not possible to extend even if employee is sick
Extension             during the probationary period

                      As per article 7:672 of the civil code the minimum
                      notice period is 1 month. Less than 5 years service
                      =1 month`s notice. Note that the employer notice
                      period is normally twice that of the employee-so if
                      the employee needs to give 2 months notice the         The maximum notice period permitted is 6 months for the
Notice Period         employer will have to give 4 months notice.            employee and 12 months for the employer.
Notice Period 2       5 to 10 years =2 months                                as law
Notice Period 3       >10 < 15 years = 3 months                              as law
Notice Period 4       15 years or more =4 months                             as law

                      Article 7:668a of netherlands civil code states that:
                      up to 3 fixed term contracts may be entered into
                      with a total span of 36 months. Or if there is a break As law This means there can be a maximum of 2 renewals. There
                      of 3 months or more between the contracts then any is no notice period required if a fixed term contract comes to the
Fixed Term Contract   number of contracts may be undertaken.                 end of its term.
                                                                             It is common to employ employees in Netherlands on a fixed term
                                                                             contract of 1 year and then convert it into an indefinite one,
Indefinite Contract                                                          effectively giving a long probationary period.
                      Pensionable age is 65. But for the employee to retire
Retirement Age        at 65 it must be agreed beforehand.




1                                                      5172acc7-4b67-48c3-a4d9-f80792c707c2.xls        3/25/2011
Compandben SA                                                           5172acc7-4b67-48c3-a4d9-f80792c707c2.xls




                                     Market Conditions Summary - Netherlands
                               LAW                                                        MARKET
                                                                                          general information

Employment Conditions

                               maximum over a 13 week period is 40 hours per              In collective agreements the working hours can go to 45 hours
Working Hours                  week. So this is the effective legal maximum               over the 13 week period.
                               employees granted annual leave to 4 times their            Legal minimum often increased to 5 weeks .There is a tendency
                               working week. So if they have a 6 day week they get        to give more vacation for length of service- typically:      +5
                               24 days vacation. Legal minimum is 4 weeks.                yrs = +1 days vacation      +10 yrs=+2 days vacation      +15
Vacation                       Unused vacation lapses after 5 years                       yrs=+3 days vacation
                               article 7:629 previews an exception to the principle
                               "no work no salary" (Geen arbeid geen loon) and
                               permits some special leave for employees to fulfill
Special Leave                  civic duties
Birth of Child
Death of Spouse or child
Death of Father or Mother
Marriage
Marriage of a child
others
                               New years Day/Easter Monday/Christmas Day/New
                               Years Day Night/Queen's Birthday/Pentecost/Whit
                               Sunday/Liberation Day/ Christmas Eve/Ascension             Some employers also give St Stephen's day/Good
Public Holidays                Day =10                                                    Friday/Constitution Day/Remembrance Day 4th May
                               16 weeks maternity paid leave but note that
                               employer receives from the state a similar amount.
                               The maternity leave can be taken a maximum of 6            as law. The maternity leave can be extended if the employee is
Maternity leave                weeks before the childbirth                                unable to work after the birth.
                               6 months part time work or 3 months full time unpaid
                               parental leave for a child of up to 8 years old- article
Paternity and Parental Leave   7:644                                                      as law
                               Employee may apply for unpaid leave under the
                               "Wet financiering loopaanoderbreking" and if granted
Unpaid leave                   social security will pay a benefit.

Remuneration
                               As of January 2002 minimum wage is EUR 1206.60
                               per month for employees full time employed and
Bonus/Minimum Wage             over 23 years of age.                              awaiting 2003 update
                               8% of a years pay calculated from June 1 to May 31
                               in any year holiday allowance is normally added to
Months of salary payment       pay.                                               Most frequent is 13.96 months of pay.



2                                                                5172acc7-4b67-48c3-a4d9-f80792c707c2.xls            3/25/2011
Compandben SA                                                      5172acc7-4b67-48c3-a4d9-f80792c707c2.xls




                                 Market Conditions Summary - Netherlands
                           LAW                                                     MARKET
                                                                                   general information



Social Coverage
                                                                             Normally a private insurance is taken out for this coverage.In
                                                                             contracts it can be agreed that this salary is not payable for the
                           Employers required to pay a minimum of 70% of pay first two days. A new project is in progress whereby the employee
Payment of salary after    during sickness but there is a maximum of 70% of  will be entitled to 100% of salary in the first year. In practice
accident or sickness       the EUR 159.99 gross per day.                     employers pay 70% without minimum.

                                                                                   2 years salary is most common and 3 years max as life insurance
                                                                                   as beyond this the amounts are taxed. If there is a pension
Life insurance             No legal requirement                                    provision for widows it is not usual to have a life insurance as well
Military Service           Suspended 1996.
                           see "pension plan" It is legal in Netherlands to have
                           different pensions for different groups. Thus some
                           can have a pension based on 70% of final salary
Social Insurance           and some on 80%                                         see "pension plan"
Early retirement

                                                                                   About 90% of employees covered by a private pension plan .Of
                                                                                   these the majority are "final salary" plans. Normally enough to
                                                                                   guarantee the payment of 70% pension. The salary for this 70%
                                                                                   can be the final salary (most usual) or the average of the last 2 to
                                                                                   3 years. As pensions have become more expensive because
                                                                                   investment returns have slumped, companies moving toward
                                                                                   carreer average definitions for pensions.40 years of contributions
                                                                                   normally expected. The norm is for an employee contribution of
Pension                    No legal requirement to arrange a pension plan.         5% or so and some plans are index linked some not.
                           Intended that 70% of final salary at the time of
                           retirement be available, less whatever "franchises"     Common contribution of employee is 5% of salary for both
Principle of the pension   or reductions agreed as apart of the financing of the   defined benefit and defined contribution plans with an average of
arrangements               plan.                                                   7.5% and up to 15% being contributed by employer
Contributions              as indicated elsewhere                                  as indicated elsewhere

Accident Insurance         paid through general social insurance not separately paid through general social insurance not separately
                                                                                For executives a private health care is required and it is common
                           Up to Dfl 47545 the health insurance is normally     for this to be paid by the employer to 60% of the premium. This
                           paid by the state in return for the contribution of  can cost up to Dfl 3000 for adults and Dfl 1500 for children. A
Health Insurance           6.25% o salary paid by the employer.                 standard insurance is Ffl 307 per month.
Long Term Care Insurance
                           Called WAO 7. 96% premium on a salary of Euro
Disability Insurance       41499 per annum



3                                                           5172acc7-4b67-48c3-a4d9-f80792c707c2.xls            3/25/2011
Compandben SA                                                         5172acc7-4b67-48c3-a4d9-f80792c707c2.xls




                                       Market Conditions Summary - Netherlands
                                 LAW                                                MARKET
                                                                                    general information

Child Allowance
SOCIAL INSURANCES                EMPLOYEE                                           EMPLOYER
Old age and surviving
dependents insurance ,
Disability insurance , Loss of
earnings insurance               Old age pension provision is part of general taxation Old age pension provision is part of general taxation
Unemployment insurance           4.13% on Eur 41499 per annum- employee pas            called WW unemployment benefit is to a maximum of 70% of Dfl
WW                               4.95%                                                 337.
Unemployment insurance
Professional and non-
professional accident
insurance                        Paid through WAO
                                                                                    Employers usually take out insurance for covering employees
                                                                                    salaries beyond the 12 months payable by the state and
Loss of earnings insurance                                                          supplementing the amount paid by the state to the previous level
for sickness                                                                        of salary
                                 Called ZFW 1.7% EMPLOYEE contribution on           Called ZFW 6.25% EMPLOYER contribution on salary up to
Health Insurance                 salary up to Euro 30700 per annum                  Euro 30700 per annum
Total                            see sample charges spreadsheet




4                                                              5172acc7-4b67-48c3-a4d9-f80792c707c2.xls        3/25/2011
Compandben SA                                                      5172acc7-4b67-48c3-a4d9-f80792c707c2.xls




                                Market Conditions Summary - Netherlands
                          LAW                                                       MARKET
                                                                                    general information

Indemnities
                          Application for severance has to be made to
                          Cantonal courtsGiving notice of termination can
                          terminate an agreement for an indefinite period of
                          time. The employer has to obtain prior written
                          consent from the Executive Legal Affairs of the
                          Central Organisation for Work and Income (in Dutch:
                          “Functionaris Juridische zaken van de Centrale
                          Organisatie voor Werk en Inkomen”: “CWI”) before
                          notice of termination can be given.

                          Dismissal proceedings with the CWI
                          After the CWI renders written consent (permit to give
                          notice) to give notice of termination, upon the giving
                          notice the notice period must be observed. After
                          lapse of the notice period the employment
                          agreement terminates. Until the permit to give notice
                          is obtained, any notice is null and void and does not
                          terminate the employment.                              Typical market rate would be one month salary per year of
                                                                                 service but courts may apply a rate where years of service up to
                                                                                 age 40 count as 1, from 40 to 50 count as 1.5 and above 50
Termination Indemnities                                                          count as 2

                          An employee of whom the employment has been
                          correctly terminated by giving notice after a permit to
                          give notice is obtained may, nevertheless, claim
                          damages or even reinstatement in his former job on
                          the grounds that he has been unreasonably
                          dismissed. It takes in general approximately two to
                          three months to obtain a permit to give notice with
                          the CWI.An employment agreement may be
                          terminated by mutual consent. It is recommended
                          that a termination by mutual consent is confirmed
                          explicitly in a written document signed by both
                          parties. A mutual consent termination may
                          jeopardise the employee’s right to unemployment
                          benefits. Therefore, a mutual consent termination is
                          in practice often formalised by a Court termination.
                          This is then only a formality in order to safeguard the
Termination Indemnities   employee’s unemployment benefits as far as
continued                 possible.




5                                                          5172acc7-4b67-48c3-a4d9-f80792c707c2.xls         3/25/2011

				
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