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Collective labour agreement (cao)

A collective labour agreement (cao, collectieve arbeidsovereenkomst) is a contract on employment conditions concluded between employer organisations and trade unions. A cao governs an entire sector or individual company and sets salaries, working hours, holiday entitlement, expense allowances and other conditions. If you are bound by a cao as an employer, you must comply with it. Employees cannot waive cao rights — they are legally binding.

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