The Antwerp Criminal Court sentenced a number of subcontractors of parcel company Post NL on Friday to fines, mostly partly suspended, for social law violations against their employees. The court did not find it proven that these violations were the result of the ‘stranglehold contracts’ they had concluded with Post NL. Post NL Holding, its Belgian companies and directors were therefore acquitted.
The social inspection services conducted large-scale inspections at Post NL depots in the spring of 2021. The parcel company sorts the parcels with its own employees, but transport to customers is subcontracted by transport companies, which work with their own means of transport and their own staff.
Several violations were found among these subcontractors: no DIMONA notification, no available copy of part-time employment contract and/or variable work schedule, no work permit, etc. The inspection services therefore drew up several reports.
Post NL endorsed
A number of subcontractors pointed an accusing finger at Post NL. They had concluded a transport agreement with the parcel company in which a number of agreements were laid down about how the work had to be carried out by the subcontractors and their employees. According to the subcontractors, however, these were ‘stranglehold contracts’ that undermined their own authority over their employees and forced them to commit social law violations in order to continue working profitably.
In May, the labor auditor demanded fines of 4.4 million euros and 20 million euros respectively against the Belgian branch of PostNL Cargo and PostNL Pakketten. The investigation would reveal far-reaching interference by PostNL Cargo and PostNL Pakketten in the internal business operations of the subcontractors, which would constitute a ‘prohibited provision’ and they would in fact have to be regarded as the employer of the drivers. All social law violations would therefore have to be attributed to them. The labor auditor himself demanded acquittal for PostNL Holding and two top executives as well as most of the subcontractors. (Continue reading below the photo)
No consequence of ‘strangling contracts’
The court ruled on Friday that the transport agreement or the ‘strangulation contract’ was not so drastic that it resulted in an erosion of the authority of the subcontractors vis-à-vis their employees. According to the court, the agreement was concluded voluntarily by the subcontractors and could also be terminated by them at any time. The contract could also not be invoked as justification for the social law violations.
Post NL Holding, the Belgian branch of Post NL Cargo and PostNL Pakketten and its directors were therefore acquitted. About twenty subcontractors and their directors received fines ranging from 800 to 744,000 euros, usually partly postponed, because the infringements were almost always regularized after the facts.
Post NL happy, but emphasizes major impact
PostNL says it is happy that it has been acquitted by the criminal court. However, the lawsuit had a “significant impact” on company employees and the organization itself, due to the nature of the accusations and the ongoing uncertainty, PostNL said.