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HomeCouncil of State confirms: equal pay outweighs dispensation
Analysis of ruling 30 April 2025

Council of State confirms: equal pay outweighs dispensation

On 30 April 2025, the Administrative Jurisdiction Division of the Council of State ruled that the Minister of Social Affairs rightly refused to grant DPA dispensation from the universally binding ABU and SFU collective agreements. The ruling (ECLI:NL:RVS:2025:1974) contains six insights that directly affect the remuneration policies of employers and staffing agencies.

Last update: April 9, 2026 · Reading time: 8 minutes

Quick answer

  • Equal pay is the leading motive behind universal binding declarations. Obtaining dispensation is very difficult.
  • A company's own pay system is not a valid argument for exemption from the collective agreement.
  • The burden of proof lies entirely with the employer, not with the minister.

Equal pay as the leading principle

The two most far-reaching rulings go to the core: equal pay is the purpose of universal binding, and a deviating pay system is not a valid counterargument.

Equal pay is the leading motive behind universal binding

Dispensation is rarely granted

  • The Division explicitly confirms that universal binding aims to achieve equal pay within the sector.
  • This is a weighty interest the minister may factor into the rejection of dispensation requests.
  • The argument that adaptation brings 'too much administrative burden' was explicitly rejected.

Deviating pay system is no argument

Impossibility, not complexity

  • DPA argued its pay system fundamentally differs from the ABU and SFU collective agreements.
  • The Division rejects this: DPA has not demonstrated that alignment is impossible.
  • Complexity, costs or organisational burden are insufficient as weighty arguments.

The two-step test: essential differences are not enough

The lower court ruled that the minister had insufficiently motivated that DPA did not essentially differ from other companies. The Division corrects this. The Assessment Framework contains two separate thresholds.

1

Step 1: Essential business differences

The minister acknowledges that DPA essentially differs from other companies in the sector. This test is not in dispute. DPA passes the first door.

2

Step 2: Weighty arguments

The real question is whether there are weighty arguments making compliance with the CBA unreasonable. This is the test where DPA fails.

Burden of proof lies with the employer

The Division clarifies that the minister is not required to independently investigate possible justifications for a dispensation request.

It is up to the applicant to motivate and substantiate the request. The minister must assess independently, weigh objections from CBA parties, and may ask the applicant for further substantiation. A thinly motivated dispensation request will fail quickly.

Transition period and procedural interest

The only point where DPA partially prevails. Because DPA had received dispensation for years, the minister should have offered a one-time transition period during which DPA could adapt its pay system.

The absence of a transition period makes the decisions insufficiently careful on that point.
Legal certainty plays a role: an abrupt policy change cannot be imposed without a transition arrangement when an employer has relied on dispensation for years.
DPA/LBV did lose on the ABU-CBA 2017-2019 because that period had already expired. Procedural interest lapses when a CBA period has passed.

What does this mean for pay transparency?

This ruling impacts the broader pay transparency landscape on multiple fronts.

1

Equal pay legally anchored as a sector objective

The Division confirms that equal pay through universal binding is a legitimate and weighty instrument. This strengthens the narrative in which the WGBMV also fits. Employers cannot easily exempt themselves from sector pay frameworks.

2

CBA compliance becomes more important

CBA obligations are strictly enforced. Combined with PTD reporting that requires structural analyses and makes CBA deviations visible, this creates dual pressure on staffing agencies and their clients.

3

Staffing sector under legal pressure

The case is set in the heart of the staffing industry (ABU/SFU). WAADI art. 12b and WGBMV obligations are inseparable from CBA obligations.

4

Burden of proof lies with the employer everywhere

This resonates with the reversal of burden of proof under the WGBMV. In both regimes, employers must demonstrate that their pay policy is sound.

5

A custom pay system offers no escape route

Employers who believe their unique job architecture exempts them from sector norms receive a clear signal. Structured, methodical job evaluation is needed, not custom systems that evade scrutiny.

Sources

  • [1]Council of State, Administrative Jurisdiction Division, 30 April 2025, ECLI:NL:RVS:2025:1974 (DPA Group N.V. and LBV / Minister of Social Affairs and Employment), case no. 202201104/1/A3.

This article is a legal analysis and not legal advice. Consult a specialist for your specific situation.

Frequently asked questions

What is dispensation from a universally binding collective agreement?

Dispensation is an exemption whereby an employer is not bound by a collective agreement that the minister has made mandatory for the entire sector. The minister assesses whether there are essential business differences and whether there are weighty arguments making compliance unreasonable.

Can an employer with its own pay system obtain dispensation?

That is very difficult. The Council of State ruled in 2025 that a deviating pay system is not in itself a weighty argument. The employer must demonstrate that alignment with the CBA system is factually impossible, not merely complex or costly.

What does ruling ECLI:NL:RVS:2025:1974 mean for staffing agencies?

The ruling confirms that equal pay is the leading objective of universal binding in the staffing sector. Staffing agencies deviating from the ABU or SFU collective agreements cannot count on dispensation unless they demonstrate that compliance is impossible. Combined with the upcoming Pay Transparency Directive, this means CBA compliance is becoming increasingly important.

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