Loophole in legislation on standards for remuneration
A loophole in legislation on maximum pay for senior executives in public and semi-public sectors in the Netherlands has been uncovered by RTL News. Barend Barentsen, Professor of Labour Law, comments on the issue in the broadcast.
Due to a loophole in the Executives’ Pay (Standards) Act (Wet normering topinkomens (WNT)), self-employed persons, including the director of public broadcaster NOS Renate Eringa, can apparently get round the maximum salary limit of €233,000. Professor Barentsen told RTL news that 'although she remains within the rules, she's taking advantage of loopholes in the law.'
Thanks to the exception in the law for interim directors, Eringa was able to earn more and combine various senior positions. The question is whether this exception actually applies in her case. She was given a multi-year contract, so there was no reason for a high self-employed rate to compensate for income uncertainty. According to Barentsen, 'the law is not intended for interim employees with a long-term contract.' The question is also whether she was genuinely a freelancer or actually a disguised employee.
Other interim managers in comparable situations have also made use of this exception. All the more reason for the House of Representatives to reconsider this loophole in the WNT Act (in Dutch). Several political parties want to put an end to the abuse of loopholes that allow people to receive higher salaries.
More information?
Read the RTL news article (in Dutch)
Watch the RTL news broadcast (in Dutch)