Those Who Do Not Provide Clear Information Pay The Price

An employer in the Netherlands has to inform an employee in writing or electronically of the key terms of employment, including any bonus plan, within one month of starting work. This obligation to provide information ensues from a European Directive aimed at providing employees with transparency and predictability about their terms of employment.

In principle, a violation of the obligation to provide information leads to the employer's liability. However, case law attaches other consequences to the failure to provide information or to the provision of incorrect information, specifically in terms of the obligation to furnish facts and the burden of proof. The Dutch Supreme Court recently ruled on this in a dispute about the interpretation of a bonus plan.