Enforcement and Sanctions for Non-Compliance with Minimum Wage Rules

The Inspectorate SZW enforces strictly on minimum wage, including end-of-year payments. Violations lead to fines of €2,000 to €12,000 per employee, doubled in case of recidivism (Impediments Act). Priority in vulnerable sectors such as cleaning and agriculture. In 2023, 5,000 fines were imposed, totaling €25 million. Companies first receive a warning, followed by a stop order. Employees can report anonymously via the reporting line. The Public Prosecution Service pursues criminal proceedings in cases of intent. Administrative procedures take an average of 6 months; appeal to the CBb. Examples: a supermarket chain paid €500,000 after mass underpayment. Advice: conduct internal audits and train payroll administrators. Digitalization via eHerkenning simplifies reporting. For international workers, additional rules apply from the Act to Combat False Self-Employment. UWV recovers arrears of wages within 5 years. Trends: AI tools for wage checks by the government. Entrepreneurs: invest in compliance to prevent reputational damage. Legal assistance via FNV or VNO-NCW recommended. (197 words)