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Green employment conditions are schemes that encourage and reward employees for making more sustainable choices — from an electric lease car and bicycle plan to a higher work-from-home allowance or a climate budget for home insulation. When properly implemented, they reduce CO2 emissions, strengthen your employer image, and increase employee satisfaction. It is important, however, that they do not come at the expense of existing employment conditions and that the tax and legal aspects are correct. Below, you can read how to approach this.
What are green employment conditions?
Green employment conditions are employee compensation schemes that aim to have a positive impact on the environment and climate. Examples:
- electric lease cars and bicycle plans;
- a higher home working allowance;
- a mobility plan that encourages sustainable travel (public transport, cycling);
- a climate or sustainability budget, for example for insulating one's own home;
- an eco-friendly staff or Christmas gift.
They are intended to support employees in making more sustainable choices and to reward them for their efforts in a sustainable way.
What are the benefits?
- Lower CO2 emissions: a direct win for the environment.
- Better image: sustainability strengthens your reputation with customers and partners.
- Cost savings: sustainable choices often turn out to be more cost-effective in the long run.
- Higher engagement: employees appreciate an employer who engages in corporate social responsibility.
- Attractive employership: you retain current and future employees and appeal to customers.
How do you implement green employment conditions?
- Take stock: assess your current employment conditions and identify opportunities for greening.
- Choose appropriate schemes: for example, a sustainable mobility plan or a climate budget.
- Involve employees: take their needs and wishes into account, and ensure that no one is forced to compromise on existing conditions.
- Arrange the financing: utilize tax opportunities, such as the Work-related Costs Scheme (WKR), to provide tax-free allowances.
- Document it legally: amend the employment contract or an arrangement so that the agreements are clear and enforceable.
The tax allowance under the work-related expenses scheme and specific exemptions change periodically; check the current amounts and conditions before implementation.
What legal aspects should you look out for?
A few points to keep in mind prevent problems later on:
- No deterioration: a new green condition may not adversely alter existing employment conditions without consent.
- Equal treatment: ensure that regulations do not make unjustified distinctions between groups of employees.
- Clear terms and conditions: define what the arrangement entails, who it applies to, and what happens upon termination of employment (for example, in the case of a leased bicycle or car).
- Tax substantiation: coordinate the arrangement with your bookkeeper or tax specialist to avoid additional assessments.
Frequently asked questions about green employment conditions
May I replace an existing compensation with a green scheme?
Not unilaterally. Changing existing terms of employment generally requires the employee's consent. Therefore, offer a green scheme as an addition or through a careful modification process, not as a disguised cutback.
Are green employment conditions tax-efficient?
Often, yes. Under the Work-related Costs Scheme and through targeted exemptions, certain long-term allowances can be provided tax-free. The exact scope changes annually, so have the current tax options checked.
Do I need to involve the Works Council?
For arrangements that apply collectively, the works council or employee representative body may have the right of consent or advice. Involve them in a timely manner; this also increases support.
Assistance with implementing green employment conditions
Implementation involves legal and tax aspects. The legal experts at MKB Juristen advise on the best approach and adjust your employment contracts and arrangements to ensure the green terms are legally sound. View our employment law or schedule a no-obligation intake.
