Huge impact
The WNT provides for standardisation of the remuneration and severance pay of senior executives at institutions in the public and semi-public sector, and requires disclosure of the amounts paid. Minor errors in complying with the WNT may quickly lead to major consequences.
The WNT has an enormous impact inter alia on senior officials in the healthcare sector, at housing associations, in education and in the public sector. In addition to the fact that the WNT imposes limits on parties’ freedom of contract, amounts paid in excess according to the Act must be repaid, and parties who make mistakes are named and shamed. Accordingly, a thorough knowledge of the WNT is indispensable in the (semi-)public sector. The WNT is a combination of employment law rules and tax arrangements enforced under administrative law. This unique combination and the rapid succession of amendments create unnecessary complexity.
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