The Antwerp Criminal Court handed down fines to a number of subcontractors of parcel company Post NL on Friday for social law violations against their employees, most of which were partly suspended. The court, however, did not find sufficient evidence to conclude that these violations were a result of the ‘stranglehold contracts’ they had entered into with Post NL. As a result, Post NL Holding, its Belgian companies, and directors were acquitted.
The social inspection services conducted large-scale inspections at Post NL depots in the spring of 2021. While the parcel company sorts parcels with its own employees, transport to customers is subcontracted to transport companies using their own means of transport and staff. Violations such as no DIMONA notification, missing part-time employment contracts, no work permits, etc., were found among these subcontractors, leading to the drafting of several inspection reports.
Some subcontractors blamed Post NL for the violations, pointing to transport agreements that dictated how the work had to be carried out by both subcontractors and their employees. These subcontractors referred to these agreements as ‘stranglehold contracts’ that compromised their authority over their employees and forced them to breach social laws to maintain profitability.
In May, the labor auditor sought fines against the Belgian branch of PostNL Cargo and PostNL Pakketten following investigations revealing interference in the subcontractors’ internal operations. The labor auditor argued this constituted a ‘prohibited provision,’ making PostNL Cargo and PostNL Pakketten the employers of the drivers, responsible for all social law violations. However, the court’s ruling on Friday did not find the transport agreement to erode subcontractors’ authority significantly, resulting in the acquittal of Post NL Holding, its Belgian branches, and directors.
Approximately twenty subcontractors and their directors received fines, mostly partly suspended, for violations that were typically resolved after the fact. PostNL expressed relief at being acquitted by the criminal court but noted the significant impact the lawsuit had on employees and the organization due to the nature of the accusations and the ongoing uncertainty.