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Influence of CAOs on Transitional Compensation during Probationary Period

CAOs can modify the probationary period exclusion for transitional compensation. Learn how collective agreements provide more favourable rules in specific sectors.

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CAOs can deviate from the statutory main rule regarding transitional compensation during probationary period. Article 7:673(11) BW allows collective agreements to exclude or adjust the compensation, provided it is not unreasonably burdensome. In the hospitality CAO, there is no probationary period exclusion for permanent employees.

For example: the Metal CAO provides a 'probationary period compensation' of 50% of the standard transitional compensation. Employees should consult the applicable CAO via the industry organisation's website. If the CAO is more favourable, it prevails over the law.

Disputes arise in sectors without a CAO; in such cases, the law applies. Advice to employers: integrate CAO rules into the employment contract. For employees: check upon commencement of employment whether the CAO deviates. In 2023, this led to multiple revisions of dismissal compensations. (197 words)