Please note: time registration is crucial to avoid high fines🕐

The Rotterdam District Court recently ruled that a hospitality employer was fined heavily for failing to keep proper records of working hours. The minister had initially imposed fines totaling € 51,250, but the court ultimately reduced this to € 30,000 (€ 22,500 for the Minimum Wage and Minimum Holiday Allowance Act and € 7,500 for the Working Hours Act).

Many employers believe that employment contracts, pay slips, and a fixed work schedule are sufficient. This ruling shows that this is not enough. The Working Hours Act requires that the actual start and end times and breaks for each employee be recorded so that, in the event of an inspection by the Inspectorate, it can be checked whether, for example, the rules on working hours and rest periods are being complied with and whether the minimum wage is being paid. Even when staff work according to a fixed schedule, this obligation remains in place. The case was complicated by the fact that employees told the Inspectorate that they sometimes worked longer or shorter hours than their fixed schedule. As a result, the Labor Inspectorate was unable to verify the actual working hours or whether the minimum wage and vacation allowance had been paid correctly. The lack of registration is entirely at the employer's expense and risk. Exceptions only apply in special cases, for example for employees aged 18 and over who earn at least three times the minimum wage.

This is an important signal for employers: accurate and verifiable time registration is essential to avoid penalties. This applies in particular to employers in the hospitality industry or other sectors where wages (with or without a collective labor agreement) do not differ greatly from the minimum wage and where the Labor Inspectorate conducts more frequent checks than in other sectors. An employment contract or schedule is not sufficient evidence; what matters is that it can be demonstrated in practice how many hours were actually worked and when breaks were taken. Consider time registration apps, special software, or (digital) time clocks.  

Have you had a visit from the Inspectorate and are you afraid of a fine? Then call one of our employment lawyers, Dennis Oud, Elke Hofman, or Tessa Sipkema for advice. 

You can read the ruling here.