Administrative fines

What we do

An administrative fine is an obligation to pay a sum of money. This sum must be paid by the offender. An administrative fine is a means of sanctioning offenders who fail to comply with administrative regulations. The law establishes the authority to impose administrative sanctions. This rule implies that supervision of compliance with the rules is necessary for enforcement.
There are a number of ways in which administrative sanctions are possible. These are:

• The revocation or suspension of a decision;
• Imposing an order under administrative coercion – has a remedial sanction;
• Imposing a penalty payment – ​​constitutes a remedial sanction;
• Imposing an administrative fine constitutes a punitive sanction.

A distinction is made between a punitive sanction and a remedial sanction. A punitive sanction is intended to punish the offender. The aim of this is to prevent the violation from occurring in the future. The law provides the definition of a remedial sanction. The definition reads as follows: "A remedial sanction is a sanction that partially or wholly reverses the violation. This is to prevent the violation from being repeated, or to remove the consequences of a violation.".

When organizations encounter enforcement issues, it is advisable to seek expert legal advice. We have extensive experience with enforcement issues and procedures. Contact us to discuss the possibilities.

The administrative fine within supervision and enforcement

The administrative fine is the punitive final piece of the administrative enforcement instrumentarium. Unlike an order subject to a penalty payment or an order subject to administrative coercion – which are aimed at remediation – the fine is a punitive sanction: it punishes an offense already committed. This difference is legally far-reaching, because with a punitive sanction, the safeguards of criminal law apply by analogy. Consider the presumption of innocence, the right to silence, and the duty to inform the defendant of their rights (Article 5:10a of the General Administrative Law Act), and the prohibition of double jeopardy, ne bis in idem (Article 5:43 of the General Administrative Law Act). The statutory definition can be found in Article 5:40 of the General Administrative Law Act. We assist both international corporations and the baker on the corner, with mixed teams of lawyers and in-house counsel who know the practice of supervision and enforcement from the inside.

Which supervisory authorities impose administrative fines?

Virtually every sector has its own supervisory authority with the power to impose fines. In practice, we encounter, among others:

• the Dutch Labour Inspectorate (working conditions, Foreign Nationals Employment Act, Minimum Wage Act);
• the Netherlands Food and Consumer Product Safety Authority (NVWA) in the field of food safety and product safety;
• the Netherlands Authority for the Financial Markets (AFM) and De Nederlandsche Bank (DNB) in financial supervision under the Financial Supervision Act and the Anti-Money Laundering and Counter-Terrorism Financing Act;
• the Authority for Consumers and Markets (ACM) in competition and consumer law;
• the Dutch Data Protection Authority (AP) under the General Data Protection Regulation;
• municipalities and environmental services for violations of, for example, the Environment and Planning Act or the Housing Act 2014.

Each supervisory domain has its own fine policy rules and standard amounts. Those familiar with the rules of the specific framework can often avoid a fine or substantially reduce it.

The fine procedure step by step

The fine procedure follows fixed steps, with deadlines you must not miss:

• Penalty report – the supervisor records the findings of the violation in a report.
• Intention and statement of views – you will receive a notification of the intention to impose a fine and may submit a statement of views. For many supervisory authorities, such as the Labour Inspectorate, a two-week period applies to this; therefore, please pay attention to the deadline in your letter.
• Fine decision – following the submission of views, the final decision will follow with the fine amount and the payment term.
• Objection – you may lodge an objection against the decision with the administrative body within six weeks.
• Appeal and further appeal – if the objection is rejected, an appeal may be lodged with the District Court within six weeks, followed by a further appeal with the Administrative Jurisdiction Division of the Council of State or the Trade and Industry Appeals Tribunal.

The submission of views is often the most underestimated, but most effective moment: a well-substantiated defense at this stage prevents the fine from being imposed at all or significantly reduces the amount.

Amount of the fine: culpability, proportionality and ability to pay

An administrative fine is not a fixed amount that is imposed indiscriminately. The administrative body must tailor the fine to the severity of the violation and the degree of culpability (Article 5:46 of the General Administrative Law Act). If there is no culpability whatsoever – the absence of all fault (avas) – then no fine may be imposed (Article 5:41 of the General Administrative Law Act). In addition, the administrative court fully assesses the fine against the principle of proportionality: a fine that is disproportionate to the violation is mitigated. The financial capacity of the offender, recidivism, and any concurrence of violations also play a role. For the small business owner, a standard amount can quickly prove to be disproportionately heavy; it is precisely there that significant gains can be made with a targeted defense based on the ability to pay.

Objection, appeal and collection of the fine

An objection or appeal does not automatically suspend the payment obligation: in principle, the fine must be paid within the deadline, even if you disagree with it. However, you may request a deferral of payment, a payment arrangement, or (in the event of annulment) repayment with statutory interest. If you fail to pay, the administrative body may collect the fine via a collection decision and ultimately a writ of execution. We assess whether a request for provisional relief is worthwhile to suspend payment while the proceedings are ongoing, and we monitor all deadlines for you.

When should you hire a lawyer or legal expert?

The sooner you seek legal assistance, the greater your chances. It almost always pays to contact us as soon as an inspection is announced or a fine is intended, so that your views are utilized to the fullest. Our mixed teams of lawyers and (corporate) legal counsel guide clients ranging from international corporations to the baker on the corner through the entire procedure: from assessing the fine report and conducting a defense, to objections, appeals, and further appeals. This expertise is part of our broader Supervision and Enforcement, which also enforcement warnings and the revocation of permits .

Frequently asked questions about administrative fines

What is the difference between an administrative fine and an order subject to a penalty payment?
An administrative fine is a punitive sanction for an offense already committed; an order subject to a penalty payment is a remedial sanction intended to terminate or prevent the offense.

Within what timeframe must I respond to an administrative fine?
You must lodge an objection against the fine decision within six weeks. Before that, you can usually submit a statement of views regarding the intention; pay close attention to the deadline stated in your letter, which is shorter for some supervisory authorities.

Can an administrative fine be reduced or withdrawn?
Yes. In cases of minor or absent culpability, disproportionality, or limited financial capacity, the fine may be mitigated or waived entirely.

Do I have to pay the fine during an objection or appeal?
In principle, yes, because objections and appeals do not have a suspensive effect. You can request a postponement or a preliminary injunction.