It sets out the agreements you, as an employee, have made with your employer. The contract of employment contains agreements about your terms of employment, including your wages, allowances, overtime pay and working hours. Unions also make agreements on behalf of employees with employers’ organisations, about things like wages and working hours. We call that a collective labour agreement (called ‘cao’ in Dutch). Your employer is obliged to comply with it. Many sectors, such as agriculture, horticulture and transport, have a mandatory cao.
These rules also apply if you are employed by an employment agency. In the Netherlands, there is also a cao for temporary workers. Furthermore, as a temporary worker, your employment agency will give you a confirmation of placement (called ‘uitzendbevestiging’ in Dutch) for the company where you will be working. This states which sections of the cao or regulations of the company where you will be working apply to you as a temporary worker. So there are 2 cao’s that apply to temporary workers.