Philips Collective Employment Agreement
1 January 2018 through 31 October 2019

This CEA is an English translation of the Dutch CEA. In the event of a discrepancy or inconsistency between the Dutch and theEnglish text of the CEA or a dispute concerning the interpretation or application thereof, the Dutch text will prevail.

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1 January 2018 through 31 October 2019PHILIPS COLLECTIVE EMPLOYMENT AGREEMENT
1 January 2018 through 31 October 2019
for employees ofPhilips Electronics Nederland B.V.
Philips International B.V.
Philips Consumer Lifestyle B.V.
Philips Nederland B.V.
Philips Medical Systems Nederland B.V.
Argus Imaging B.V.

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1 January 2018 through 31 October 2019

CONTENTS
PREAMBULE
SECTION
ArticleArticle1
1.1
1.2

GENERAL
Definitions
Term of the Collective Employment Agreement

SECTION
ArticleArticle2
2.1
2.2

OBLIGATIONS OF THE EMPLOYER AND THE EMPLOYEEOf the employer
Of the employee

SECTION
ArticleArticleArticle

3
3.1
3.2
3.3

CONTRACT OF EMPLOYMENT
Commencement and duration of the contract of employment
Period of notice for a contract of employment for an unlimited period
Termination of the contract of employment by operation of law

SECTION
Article4
4.1

EXCHANGE OF EMPLOYEE BENEFITS
Philips à la Carte

SECTION
ArticleArticleArticleArticleArticleArticleArticle

5
5.1
5.2
5.3
5.4
5.5
5.6
5.7

REMUNERATION
Monthly salary
Personal budget
Variable salary
Collective salary scale adjustment
Holiday allowance
Payment by transfer
Salary regulations

SECTION
ArticleArticleArticleArticleArticlescheme)Article

6
6.1
6.2
6.3
6.4
6.5

WORKING TIME
Definitions
Working hours
Work rosters
Alteration of working times
Working part-time for employees aged 60 and older (80-85-100

6.6

Alteration of patterns of working time and working from home

SECTION
ArticleArticleArticleArticleArticleArticle

7
7.1
7.2
7.3
7.4
7.5
7.6

ALLOWANCES
Working overtime
Working special hours in work rosters
Standby duty
Public holidays
Shift work
Allowance for unpleasant working conditions

SECTION
ArticleArticleArticleArticleArticleArticleArticleArticleArticleArticle

8
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8
8.9
8.10

FREE TIME, LEAVE AND INFORMAL CARE
Informal Care
Holidays
Collective free days
Purchased days
Life Course Scheme
Care leave
Payment during holidays and leave of absence
Compensation for holidays not taken
Unpaid leave of absence
Paid leave of absence

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1 January 2018 through 31 October 2019

Article

8.11

Paid leave for employees aged 62 and older (5 x 60 scheme)

SECTION
ArticleArticle99.1
9.2

OTHER EMPLOYEE BENEFITS
Employee share purchase plan
Pension plan

Article9.3

Payment during unfitness for work

SECTION
ArticleArticleArticle

10
10.1
10.2
10.3

EMPLOYMENT AND EMPLOYABILITY
Employment
Employability
Internal and external job placement

SECTION
Article11
11.1

WORKING CONDITIONSWorking conditions

SECTION
ArticleArticle

12
12.1
12.2

INFORMATION AND CONSULTATION
Works Councils
Announcements

SECTION
ArticleArticle

13
13.1
13.2

COMPANY DISCIPLINE/INTERNAL APPEALS PROCEDURE
Disciplinary measures
Internal appeals procedure

SECTION
ArticleArticleArticleArticleArticleArticleArticleArticleArticleArticle14
REGULATIONS REGARDING TRADE UNION ORGANISATIONS
14.1 Obligations of the trade union organizations
14.2 Mutual obligations
14.3 Industrial peace, strikes and lockouts
14.4 Settlement of disputes
14.5 Leave of absence for the requirements of the trade unions
14.6 Trade union work in the employer’s establishments
14.7 Payment to the trade union organizations
14.8 Consultation about employment
14.9 Government measures
14.10 Decentralized consultation meetings

APPENDIX A
APPENDIX BPAYMENT DURING UNFITNESS FOR WORKEXPLANATION OF THE METHOD OF CALCULATING THE MONTHLYSALARY FOR SHIFT WORK AND THE SHIFT WORK ALLOWANCESALARY CUTBACK REGULATIONS FOR SHIFT WORKERSPHILIPS EMPLOYMENT SCHEME / LABOR MARKET POLICYRESILIENCE@WORKDIFFERENT AND SUPPLEMENTARY PROVISIONS APPLICABLE TOEMPLOYEES IN THE COMPANY SECURITY DEPARTMENTSALARY SCALESOTHER AGREEMENTS

APPENDIX CAPPENDIX DAPPENDIX E
APPENDIX FAPPENDIX GAPPENDIX HCEA Philips

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1 January 2018 through 31 October 2019

The undersigned:
1.

PHILIPS ELECTRONICS NEDERLAND B.V., with registered office in Eindhoven, acting
for the purposes of this agreement on behalf of itself and on behalf of the following parties:

1.1.

PHILIPS INTERNATIONAL B.V., with registered office in Eindhoven;

1.2.

PHILIPS CONSUMER LIFESTYLE B.V., with registered office in Eindhoven;

1.3.

PHILIPS NEDERLAND B.V., with registered office in Eindhoven;

1.4.

PHILIPS MEDICAL SYSTEMS NEDERLAND B.V., with registered office in Best;

1.5.

ARGUS IMAGING B.V., with registered office in Heerlen

and

2.

VHP2, with headquarters in Eindhoven;

3.

FNV, with headquarters in Utrecht;

4.

CNV Vakmensen.nl, with headquarters in Utrecht;

5.

DE UNIE, with headquarters in Culemborg;

declare that they have concluded the following agreement.

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1 January 2018 through 31 October 2019

PREAMBLE

Philips is fully focused on the health technology market and aims to make the world healthier andmore sustainable through innovation. The goal is to improve the lives of 3 billion people per year in
2025. A great deal needs to happen for this mission to succeed. Motivated, healthy employees
equipped with the right knowledge and skills are essential, a fact that Philips acknowledges andembraces. Philips wants to be the best place to work for people who share the passion describedabove. In order to become and remain a prominent player in these dynamic times, both now andin the future, in the capacity of an enterprise as well as an employer, it is key to establish a culture
in which we can deliver optimal performance as a company and as individuals. Mature andrespectful employment relationships are essential in that context. That will make it possible tocontribute to the long-term success of the company as well as the interests of the employees andthe parties representing them.
The key features of the required labor relations are:-Balance: there should be an optimum balance between the interests, expectations andpossibilities of both the organization and its employees. Achieving such a balance means,
above all, putting into practice the concepts of acting as a good employer and acting as a good
employee in a dynamic context instead of merely invoking strict ‘rights and duties’.

-

Dialogue: there must be an open and equal dialogue between manager and co-worker. It
should be based on mutual trust. Responsibilities should be located at the lowest possible levelwithin the organization. Impediments should be discussed. Where necessary or desirable, there
should be scope for customized solutions.

-

Responsibility: employees must take responsibility in their work, in their careers and for theirhealth and wellbeing, with the Company and the social partners endeavoring to create a climate
in which co-workers are able to take their responsibility. Taking responsibility means making
choices, with the Company providing the required support.

-

Involvement: ‘involvement from below’ is of vital importance, as is a proper balance between
business and organizational considerations, on the one hand, and individual and humanconsiderations, on the other hand.

-

Development: the development of everyone’s talent is of the utmost importance both for theCompany and for each individual employee. Philips supports and facilitates the developmentof every employee in addition to the individual responsibility that each employee bears.

-

Transparency: there should be maximum transparency as regards mission, vision andstrategy, as well as in plans and targets. Long-term perspectives should be monitored. Being
result-driven should be at the forefront of everyone’s mind, on the understanding that how it isachieved is just as important as what is achieved.

-

Leadership: there should be a style of leadership that matches everything stated above. The
manager’s role should be facilitating rather than hierarchically controlling.

This ideology is closely aligned with the core idea that has emerged from the theme group on‘Sustainable employability’ in the 2017 co-creation process.
Sustainable employability has been defined within the context of that co-creation as:“to have the energy and capability to continue working in a qualified capacity as well as having fun
doing it, now and in the future.”
To safeguard a sustainable policy regarding this theme, it is essential to establish a culture which
acknowledges and conveys the significance of this subject across the board. The key elements of

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1 January 2018 through 31 October 2019

the envisioned employment relationships as described in this preamble to the collective
employment agreement underline this significance and describe the envisioned culture to that end.
The parties to the collective employment agreement undertake to make constructive contributions
towards conveying and maintaining this culture. The parties involved in the collective employment
agreement also appeal to anyone within the company to take an active interest in the ideology
described here and to flesh it out in practice.
Within the context of the collective employment agreement, the recommendations from the theme
groups on ‘Sustainable employability’ and ‘Informal care’ in the 2017 co-creation process havebeen discussed by the social partners. These negotiations have resulted in various outcomes andagreements, which will be defined in more detail regarding follow-up during the term of thiscollective employment agreement.

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1 January 2018 through 31 October 2019

SECTION 1: GENERAL
A r t i c l e 1.1
Definitions
1.

The employer:

each of the parties previously mentioned under 1 to 1.5, for thispurpose choosing to be domiciled at Boschdijk 525,
Eindhoven;2.

The trade union organizations: the parties previously mentioned under 2 to 5;

3.

The employees

all those in the employer’s service and allocated to one of thejob grades 10 to 90, with the exception of:a. participants in the Employment Scheme;b. executive officers to be designated by the employer in
consultation with the trade union organizations;c. those temporarily employed in the Netherlands on thebasis of an Expatriation Agreement or a Global
Professional Agreement.
d. Senior Directors in grade 90.

A r t i c l e 1.2
Term of the Collective Employment Agreement
This Philips Collective Employment Agreement (“CEA”) comes into force on 1 January 2018 andterminates, without any notice being required, on 31 October 2019.
Rights arising from provisions of previous CEAs lapse with the coming into force of this CEA. They
are superseded by the rights arising from the provisions of this CEA. Insofar as this CEA gives
fewer entitlements, it takes precedence over previous CEAs.
Individual entitlements which do not arise from a previous CEA remain effective.
SECTION 2: OBLIGATIONS OF THE EMPLOYER AND OF THE EMPLOYEE
A r t i c l e 2.1
Of the employer
1. The employer shall not have any employees in his service under conditions less favorable thanthose laid down in this CEA. Within the statutory provisions he may, however, depart from thecollective employment agreement to the advantage of employees. However, if this departure
affects groups of employees or all employees in an establishment, the company shall notproceed with it before having consulted the trade union organizations.
2. Each employee shall receive a copy of this CEA and of the appendices pertaining to it.
3. With regard to information concerning the personal life of the employee, the employer shall takemeasures to protect the said personal life of the employee.

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1 January 2018 through 31 October 2019A r t i c l e 2.2
Of the employee
1. The employee shall act according to the provisions of this CEA and according to the instructions
given to him/her by, or on behalf of, the employer. These instructions include the General
Business Principles, which are established by the employer in consultation with the Works
Council.
2. The employee shall promote the interests of the company to the best of his/her knowledge andability, even when given no express instruction to this effect. He/she shall carry out reasonable
instructions, even if they concern the carrying out of jobs that are not part of his/her usual work.

SECTION 3: CONTRACT OF EMPLOYMENT
A r t i c l e 3.1
Commencement and duration of the contract of employment
1. When an employee first enters the employer's service the employer and the employee enter
into an individual written contract of employment in which it is agreed that this and subsequent
collective employment agreements shall apply to the employee.
2. The contract of employment is entered into for an unlimited period, unless otherwise agreed in
the individual contract.
3. The individual contract of employment states the date of entering service, the position, the place
where the employee is to start work, the employee's job grade and starting salary.
The individual contract of employment also contains provisions relating to, for instance:– the employee running a business and carrying out work for third parties;– secrecy about business matters, publications;– the renunciation of rights to inventions.
The employer shall not bind employees in job grades 25 and lower to the provision concerning
inventions.
For job grades 50 to 90 the individual contract of employment also contains provisions
concerning such matters as:– copyright;– patents;– a stipulation restraining the employee from entering employment with competitors.
4. Continuous periods of employment with enterprises belonging to the Philips group will counttowards the calculation of the duration of the employment.

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1 January 2018 through 31 October 2019A r t i c l e 3.2
Period of notice for a contract of employment for an unlimited period
1. The contract of employment can be terminated by the employer or by the employee.
The period of notice begins on the first day of the month following the notice of termination. The
contract of employment terminates at the end of the period of notice. If the employer gives
notice that the contract is to be terminated he shall confirm this in writing.
2. The period of notice that the employer shall give to the employee depends on the length of
his/her service on the day on which notice is given, and is:a. for employees in job grades 10 to 45- length of service less than 5 years:
1 month;- length of service between 5 and 10 years:
2 months;- length of service between 10 and 15 years:
3 months;- length of service 15 years or longer:
4 months.
b. for employees in job grades 50 to 90- length of service less than 15 years:- length of service 15 years or longer:

3 months;
4 months.

3. The period of notice that the employee shall give to the employer depends on his or her job
grade. It is as follows:a. for job grades 10 to 45:
1 month;b. for job grades 50 to 90:
3 months.
A shorter period is possible, subject to mutual agreement.
A r t i c l e 3.3
Termination of contract of employment by operation of law
a. The contract of employment ends by operation of law, without any notice being required, when
the specific period of time for which a contract of employment for a limited period has beenentered into has elapsed.
b. Article 668a of Book 7 of the Civil Code is applicable to a series of contracts of employment
for a limited period. The effect of Article 668a (1b) of Book 7 of the Civil Code is excluded withregard to temporary employees (temporary employment agency workers) as defined in Article
690 of Book 7 of the Civil Code. This means that if the temporary employee enters into acontract of employment for a fixed term with the employer immediately following or within six
months after termination of the temporary employment contract – which with regard to thestarting date relates only to work performed for the employer or one of his legal predecessors– , the entire period of temporary employment is deemed to be the first fixed-term contract of
employment, even if it has been interrupted by one or more periods of incapacity.
The period as mentioned in article 668a (1a) of Book 7 of the Civil Code is not applicable tocontracts of employment entered into in connection with scientific and/or doctoral research
insofar as that is necessary for completion of a Ph.D.
c. The contract of employment ends by operation of law, without any notice being required, unlessterminated earlier and unless agreed otherwise, on the last day of the month in which theemployee reaches the age of 67. As of 1 January 2019, the employment contract will end
automatically without any notice being required, with due consideration of previous notice oftermination and unless otherwise agreed, on the last day of the month in which the employee
will reach the age of 68 years.

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1 January 2018 through 31 October 2019

SECTION 4: EXCHANGE OF EMPLOYEE BENEFITS
A r t i c l e 4.1
Philips à la Carte
Philips à la Carte gives employees the opportunity to convert the money that they receive from
Philips into benefits of their own choice. It also gives employees the option of converting ‘time’ intomoney, in which case the gross value remains the same.
Philips à la Carte offers the following benefits:- purchased days;- setting aside the Personal Budget for later payment;- shares;- life course savings;- bicycle scheme;- bicycle accessories;- home workplace;- trade union fee;- travel to and from work.
The following forms of ‘time’ can be converted into money:- holidays in excess of the statutory minimum which are left over at the end of the year;- compensation in hours for overtime (‘time for time’);- saved-up leave;- compensation in days for collective holidays.
For further details, the conditions and the times for making choices, please refer to the booklet“Philips à la Carte”.
If the gross salary is used for the various benefits, this may affect the calculation of the level of thedaily wage for the purposes of social security benefits such as unemployment benefit (WW) andincapacity benefit (WAO/WIA).
Adverse consequences of employees’ choices in the fields of social security, taxation, etc., as wellas the risk arising from any changes in tax legislation and regulations, are for the employee’s
account and will not be compensated for by the employer.
SECTION 5: REMUNERATIONA r t i c l e 5.1
Monthly salary
1. The remuneration system developed by the employer is described in more detail in the brochure“Remuneration System CEA-A and CEA-B”, which deals with such items as the salary scales
and the salary guarantees. The salary scales will not be structurally altered without consultation
with the trade union organizations. The salary scales are contained in Appendix G to this CEA.
2. The monthly salary of the employee is determined by:
the employee’s job grade;the salary scale for each job grade;the appraisal of the employee’s performance;
For further details, please refer to Article 5.7.
3. The monthly salary is paid at the end of each calendar month.

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1 January 2018 through 31 October 2019A r t i c l e 5.2
Personal budget
1.

At the end of a calendar month a sum representing the personal budget will be paid together
with the monthly salary.

2. The holiday allowance, as referred to in article 5.5, is included in the personal budget.
3. The personal budget is a percentage of the monthly salary, the shift work allowance and theother designated elements of income.
4. The percentage referred to in the preceding clause is as follows:
Employeeborn after 1949
Employee in 5- or 4/5-crew shift roster with anaverage weekly working time of 31.5 to 37.5
hours

19.12%

Other work rosters

24.57%

5. If an employee exercises the right at the end of the year to buy 13 days at once for the following
year, the personal budget will be reduced by 5,91%.
A r t i c l e 5.3
Variable salary
1. The employer has a Variable Salary Scheme.
2. 70% of the variable salary depends on objectively quantifiable group targets and 30% on theemployee appraisal.
3. The variable salary based on target % depends on the professional group of the employee andwill not exceed:
professional groups 10 – 70:
3%
professional groups 80 and 90:
6%
The result based on the financial objectives has a cap.
The percentage that depends on the financial objectives will be raised by a percentage that
depends on the assessment.
Based on the assessment methodology in force since the 2015 calendar year, the maximum
total percentage of variable salary will correspond to the following table (i.e. when the financial
targets also have an optimal result):
Appraisal code

1
2
3
4
5

Significant improvement required
Improvement required
StrongExceeds
Outstanding

Percentage
grades
10-70
0
3.69
4.05
4.275
4.5

Percentage
grades
80-90
0
7.38
8.1
8.55
9

If the appraisal system changes during the term of this CEA and consequently the table is nolonger applicable, talks will be held with the trade union organizations regarding the alteration

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1 January 2018 through 31 October 2019of the table.

These are percentages of the income in a given calendar year. The income comprises, whereapplicable, the monthly salary, the shift work allowance, the fixed overtime allowance and thefixed special hours allowance.
4. For an appraisal code of 1 there is no entitlement at all to a variable salary for the year to which
the appraisal relates.
5. The variable salary is paid in March of the year following the year to which the scheme isapplicable.
A r t i c l e 5.4
Collective salary scale adjustment
The salary scales will be increased:- with effect from 1 September 2018 by 3.0%
- with effect from 1 October 2019 by 2.0%
A r t i c l e 5.5
Holiday allowance
1. The statutory percentage of holiday allowance (8%) is included in the personal budget, as
referred to in article 5.2.
2. For employees aged 22 or older, however, the holiday allowance will be at least € 2,052 on anannual basis. The latter sum will be adjusted by the percentage of the collective salary scale
adjustments, as referred to in article 5.4.
3. The employees referred to in article 9.4 and Appendix A will receive a holiday allowance only if
and for so long as they authorize the employer to receive and to offset the holiday payment
granted to them in pursuance of the Disablement Insurance Act (WAO) or the Work and Income
According to Labor Capacity Act (WIA).
4. There can be no claim to holiday allowance for employees who:
a. are on active military service other than for refresher training;b. are completely unfit for work and have no claim to payment by the employer in pursuanceof article 9.4 and Appendix A.
A r t i c l e 5.6
Payment by transfer
The employee shall enable the employer to make the payments due by transfer to a bank accountto be named by the employee.

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1 January 2018 through 31 October 2019A r t i c l e 5.7
Salary regulations
I.

Determining the job level
1. A job level is determined by reference to a register of descriptions of benchmark jobs. Thesebenchmark jobs are contained in the Central File of Benchmark Jobs. The level of thesebenchmark jobs is in turn determined according to a job evaluation system.
2. If a specific job is not comparable with the benchmark jobs, the level is determined by using
the job evaluation system.

II. Allocation of employees to a job grade
Employees are allocated to one of the job grades 10, 15, 20, 25, 27, 30, 35, 37, 40, 45, 50, 60,
70, 80 or 90.
The job grade to which an employee is allocated is in principle determined by the level of his/herjob, provided that:- there is sufficient certainty regarding the employee’s suitability to perform both the present
job and other jobs at the proposed level, and- jobs of at least this level remain available in the employee’s own organizational unit or inother units of the Company.
III. Salary system
1.
Salary system structure- The reference salary.
For each job grade there is a reference salary, i.e. the salary that employees who meet
all the job requirements on an ongoing basis at least attain and keep.
- The minimum final salary within a job grade.
All employees who meet the minimum job requirements receive at least the minimum
final salary.
- The final salary within a job grade.
If further growth in the value of the employee’s contribution to the Company (the output)
is ascertained after the minimum final salary has been attained, the employee will growbeyond this minimum final salary. In general, if the employee meets all the job
requirements on an ongoing basis, this salary growth will continue to a level
corresponding to at least the reference salary.
- The salary scales are contained in Appendix G to this CEA.
2. Influence of the appraisal
A meeting is held at least once a year between manager and employee at which theemployee’s contribution over the past period is appraised and understandings are reachedregarding the coming period. The content and results of the employee’s work, as well as
his/her way of working and conduct, are discussed at this meeting.
The main considerations underlying the salary award are discussed at this meeting.
3. Salary increase
For the employees the appraisal once a year has consequences for their salary, provided
that there is an increase in the employee's contribution and the (personal) final salary has
not yet been reached. Increases are added to the salary on 1 April following the appraisal.

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1 January 2018 through 31 October 2019

IV. Individual guarantees
1. Guarantee regarding allocation to grade
Once an employee has been allocated to a job grade he/she will not be assigned to a lower
job grade. This does not apply:
a. to employees who are younger than 55 years of age and as a result of a lack of workover a fairly long period of time at the level corresponding to their grade have to be
switched over to work at a lower level, in which case the employees are assigned to thenext lowest grade.
b. if the level of the job is lowered as a result of the fact that the employee's contribution
over a fairly long period of time does not satisfy the requirements.
c. if there are measures such as:- the closure of a factory or organizational unit;- a radical and permanent change in the employee's tasks;- a radical reduction in the staffing level of a factory or organizational unit;
in which cases the employer shall make detailed arrangements in consultation with thetrade union organizations
2. Guarantee regarding salarya. An employee who has not yet reached the minimum final salary for his/her job grade
cannot fail to be granted an increase by the employer for a period of longer than two
successive years, unless a procedure for changing the job or a dismissal procedure
has been initiated.
b. A salary level can only be reduced if the way in which the employee fulfills his/her job
gives grounds for this. If he is considering such a reduction, the employer shall informthe employee of this in writing. He shall, moreover, give the employee the opportunity
to achieve an improvement over a period of at least six months. Two months before thisperiod has elapsed he shall give the employee a further warning before proceeding to
reduce the salary.
3. Guarantee regarding salary growth
For employees who were in Philips’s service on 1 April 2009 and were in one of the job
grades 10 to 45, there is a guarantee that, if they meet the minimum job requirements, they
will eventually reach, as a minimum, the salary corresponding to a specific salary scale
position in the job grade to which they were assigned as of 1 April 2009.
This scale position is as follows:
Grade
10
15
20
25
27

Scale position
98
97
95
94

Grade
30
35
37
40
45

Scale position
94
92
92
91
90

V. COLLECTIVE GUARANTEESAs of 1 April the employer guarantees for each job grade:a. that if there are at least 50 employees who have not reached the minimum final salary:– these employees will be granted an increase of at least 3% of the reference salary;– no increase will be granted to a maximum of 10% of these employees;

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1 January 2018 through 31 October 2019b. that if there are at least 50 employees who have reached at least the minimum final salary,
the average of the salaries of these employees will be at least equal to 97% of the reference
salary.

SECTION 6: WORKING TIME
A r t i c l e 6.1
Definitions
1. Gross standard working time: the number of days in a calendar year, minus the number ofSaturdays and Sundays in that year, expressed in hours. In 2018 and 2019 the gross standard
working time is 2,088 hours.
2. A day, as referred to in the above clause of this Article, is regarded as having 8 hours.
3. Shift work roster: a duty roster containing basically distinct shifts, with employees working
different shifts at least once every four weeks. Basically distinct shifts mean that there are atleast 12 hours (excl. breaks) between the time at which the first shift begins and the time atwhich the last shift ends.
A r t i c l e 6.2
Working hours
1. Arrangements regarding working hours are contained in a (shift work) roster. The provisions in
the consultation arrangements of the Working Hours Act valid until 1 April 2007 apply here, on
the understanding that:a. a (shift work) roster in principle comprises a maximum of 9 1/2 hours per period of duty, 190
hours per 4 weeks, and 552½ hours per 13 weeks;b. on an annual basis the average working time is 40 hours per week;
c. working hours in a (shift work) roster amount to at least half a period of duty;
d. a period of duty is at least 6 hours.
Should the employer wish to make alternative arrangements, he may do so in consultation withthe trade unions.
2. Working hours in a daytime duty roster are, in principle from Mondays to Fridays.
3. The employees concerned are notified of the roster at least 7 calendar days before its
introduction.
A r t i c l e 6.3
Duty rosters
1. The employer draws up the employee's duty roster.
2. The employer requires the agreement of the Works Council concerned before drawing up orchanging the roster for all or a group of the employees concerned. The provisions of Article 27,
clauses 3, 4 and 5 of the Works Councils Act apply.
3. Working at different hours from those referred to in clause 1 of this article is obligatory if, in theopinion of the employer, the Company’s interests require this.

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1 January 2018 through 31 October 2019

4. If, for employees in job grades 10 to 45, overtime should be necessary in a certain establishment
or organizational unit to a significantly greater extent – either in terms of the number of
employees involved or in terms of the expected working hours – the employer shall consult theWorks Council on this matter.
5. If in the opinion of the employer, economic or technical conditions necessitate the introductionof short-time working in his establishments, together with a corresponding reduction in
remuneration, this shall be done only in accordance with the statutory regulations and after
consultation with the trade union organizations on this matter.
A r t i c l e 6.4
Alteration of working times (part-time)
1. Requests to alter working times must be submitted and processed in accordance with theprovisions of the Flexible Work Act.
2. If working times are altered, all conditions of employment are altered commensurately.
A r t i c l e 6.5
Working part-time for employees aged 62 and older (80-80-100 scheme)
1. From the age of 60, employees may submit a request to work part-time, with a minimum
working time percentage of 80%. Employees are entitled to work part-time one year before
reaching the (chosen) pensionable age, likewise with a working time percentage of at least
80%. Employees are entitled to 85% wages, plus personal budget.
Participation in the pension plan is continued on the basis of full-time employment. The employee’s
own contribution to the pension premium is calculated on the basis of a full-time income. This
scheme can be used for a maximum of 8 years. The working time percentage of the employee, asin effect in the 12 months previous to the request, is leading.
2. Employees who already work part-time my reduce their working time percentage proportionately
in the manner described in clause 1 of this article, with pension benefits continuing to be accruedon the basis of the income prior to the reduction of the working time percentage and theemployee’s own contribution to the pension premium being calculated on the basis of that
income.
A r t i c l e 6.6
Alteration of patterns of working time and working from home
Requests by employees to modify their patterns of working time or to work from home will beconsidered favorably in compliance with the Flexible Work Act and having regard to operating
conditions. Reasons will be given in writing for the refusal of such requests

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1 January 2018 through 31 October 2019

SECTION 7: ALLOWANCES
A r t i c l e 7.1
Overtime
1. This article applies to employees in job grades 10 to 50.
2. Overtime is understood to mean:- hours in a daytime roster and 2-crew shift work roster that are worked by the employee on
the employer’s instructions and that exceed a duty roster that has been established, insofar
as this roster comprises a working time of at least 8 hours;- hours in a 3-crew, 4-crew, 4/5-crew and 5-crew shift work roster that are worked by theemployee on the employer’s instructions and that exceed 7.5 hours per roster;- hours that are worked on days on which there is no duty roster applicable to the employee
are always deemed to be overtime if 40 hours per work are thereby exceeded.
3. Overtime is in principle compensated for by the granting of paid leave of absence.
4. If and in so far as it is not possible in the opinion of the employer to grant paid leave of absence,the employee will receive for each hour of overtime worked a payment which will amount to0.575% of his/her monthly salary, based, for the purposes of this clause, on at least € 1,595
gross. The latter sum will be adjusted by the percentage of the collective salary scale
adjustments, as referred to in Article 5.4.
5. In addition to the compensation referred to in clause 3 or the payment referred to in clause 4,
the employee will receive a bonus of 25% of the hourly wage per hour of overtime for the firsttwo hours of overtime worked on a normal working day for the employee.
6. The bonus referred to in clause 5 is 50% of the hourly wage per hour of overtime exceeding
two hours of overtime worked, as well as for more than 10 hours worked on a normal working
day for the employee.
7. The bonus referred to in clause 5 is per hour of overtime worked on Saturdays:- 75% of the hourly wage for employees in job grades 10 to 45, and- 25% of the hourly wage for employees in job grade 50.
8. The bonus referred to in clause 5 amounts to 100% of the hourly wage per hour of overtime
worked on a Sunday or on a public holiday.
9. If and in so far as an employee is permitted to take paid leave of absence in lieu of hours ofovertime worked, the employee will only receive the bonuses referred to in clauses 5 to 8.
10. Detailed rules governing compensation for overtime have been laid down internally by theemployer.
A r t i c l e 7.2
Special hours on the basis of a duty roster
1. This article applies to employees in job grades 10 to 60.
2. If and in so far as an employee does not receive, via a shift work allowance or via his/her normal
salary, extra payment for working special hours, he/she shall receive for working special hours
a payment in accordance with the provisions of clause 3 of this Article.

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1 January 2018 through 31 October 2019

3. This payment amounts to:– 25% for the hours on:
Mondays to Fridays: 00.00 - 07.00 hours
and: 19.00 - 24.00 hours
and on Saturdays: 00.00 - 06.00 hours– 75% for the hours on:
Saturday: 06.00 – 24.00 hours– 100% for the hours on
Sunday: 00.00 - 24.00 hours
4. The payments referred to in clause 3 are based on an hourly rate of 0.575% of the monthly
salary.
A r t i c l e 7.3
Standby duty
1. This article applies to employees in job grades 10 to 60.
2. An employee does standby duty if he/she keeps himself/herself available to the employer andaccessible at times outside his/her duty roster.
3.

a. A fixed allowance of one hour's work at normal salary is paid per twenty-four hours for being
on standby duty on Mondays to Fridays. In this connection twenty-four hours means thetime between the end of the roster applying to the employee on one day and thecommencement of the roster on the other day (16 hours).
b. A fixed allowance of two hours’ work at normal salary is paid per twenty-four hours for being
on standby duty on a collective holiday.
c. A fixed allowance of two hours’ work at normal salary, plus a payment in accordance witharticle 7.2, is paid per twenty-four hours for being on standby duty on a Saturday, a Sunday
or a public holiday.

4. The employer can convert the fixed allowance, in whole or in part, into paid leave of absence.
The special hours allowance is always paid.
5. If the employee actually has to turn up at work between Monday and Friday, two bonus hours
shall be paid at normal salary.
If the employee actually has to turn up at work on a Saturday, a Sunday, a public holiday or awork release day, two and a half bonus hours shall be paid at normal salary.
6. If the employee actually has to turn up at work, the hours for which he/she is present shall be
paid in accordance with Articles 7.1.
7. If the last period of attendance ends after 00.00 hours and before 05.00 hours, a rest period of
8 hours shall then follow. Where these hours coincide with hours in the duty roster applying tothat day, the salary shall continue to be paid for these hours.
8. If an employee is called out only between 05.00 hours and 06.00 hours, then within 24 hours
there follows a rest period of 8 hours after 06.00 hours.
9. If the employee is called out both between 00.00 hours and 05.00 hours and between 05.00
hours and 06.00 hours, the provisions of clause 7 apply.

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PAGE 19

1 January 2018 through 31 October 2019

10. If the employee is called out only after 06.00 hours, he/she then works in accordance with theduty roster for that day, the maximum number of hours to be worked being 13. In a period of
13 weeks the employee will not work longer on average than 45 hours per week.
A r t i c l e 7.4
Public holidays
1. No work shall be done on Sundays, New Year’s Day, Easter Monday, Ascension Day, White
Monday, Christmas Day and Boxing Day and the day on which the national holiday(“Koningsdag”) is celebrated, and 5 May (every five years, starting in 2020), unless work has
to be done for technical or business reasons or for reasons of general importance.
2. The normal salary, including any shift work allowances, will continue to be paid for public
holidays as defined in clause 1.
3.

-- Employees in job grades 10 to 50 who work on public holidays as defined in clause 1
receive, as well as the normal salary stated in clause 2 for the hours worked in a duty roster
which ends on a public holiday, a free duty roster in lieu and an allowance of 100%. Payment
may be made, by arrangement with the employee, for the free duty roster in lieu.
Employees in job grade 60 who work on public holidays as defined in clause 1 receive, as
well as the normal salary stated in clause 2 for the hours worked in a duty roster which ends
on a public holiday, a free duty roster in lieu. Payment may be made, by arrangement withthe employee, for the free duty roster in lieu.

4. The employer shall take serious account of objections, based on the employee's philosophy oflife, to working on Sundays and public holidays.
5. The employer will enable an employee to take a holiday on a generally recognized public
holiday if the employee so wishes, unless there are important economic reasons for not
permitting this.
A r t i c l e 7.5
Shift work
1. An employee who works in shifts according to a specific shift roster receives a monthly salaryfor shift work which is proportional to the employee’s working hours and determines the elementsof the employee's remuneration related to these. On top of the monthly salary for shift work, theemployee receives a shift work allowance.
2. This allowance is paid from the time when the employee starts working shifts and as long as
he/she continues to do so. An explanation of the method of calculating the monthly salary for
shift work and the shift work allowance is given in Appendix B to the present agreement.
The amount of the shift work allowance depends on the extent to which working hours and breaktimes are inconvenient.

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PAGE 20

1 January 2018 through 31 October 2019

3. Inconvenience will be determined on the basis of the following diagram*.
24.00 hours
55%
19.00 hours

115%
0%

13.00 hours

07.00 hours
55%


00.00 hours
Mon


Tue


Wed


Thu


Fri

Sat

Sun

 For determining the shift work allowance for the 2-crew day/night roster, aninconvenience-free zone of 12 hours will be calculated for Mondays to Fridays.
4. The shift work allowance will be increased by 1.5% if, in the opinion of the employer, theemployee performs work for which the break times vary from day to day and are not fixed in the
duty roster or if there is no continuous break of half an hour.
This percentage increase must be multiplied by the basic percentage which applies to theemployee (see Appendix B).
5. Payment of the shift work allowance is based on the sum total of the elements of the employee's
remuneration based at least on a monthly salary of € 2,071. The latter sum will be adjusted by
the percentage of the collective salary scale adjustments, as referred to in Article 5.4.
6. The employer's salary cutback regulations are contained in Appendix C of this agreement.
A r t i c l e 7.6
Allowance for unpleasant working conditions
1. This article applies to employees in job grades 10 to 45.
2. Employees who work in unpleasant conditions may be awarded a special allowance. The
employer shall seek to remove the unpleasant conditions. Once these conditions have been
removed, any special allowance will no longer be paid.
3. The regulations regarding the allowance for unpleasant working conditions relate to thefollowing conditions:- dirt;- climate;- air pollution;- means of personal protection;- heaviness of the work.
In addition, employees who work in a three- or more crew shift work roster followed by a seriesof at least five night shifts will be paid an allowance equal to level 1 indicated in clause 4 The
employer has established further rules internally concerning this matter.

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1 January 2018 through 31 October 2019

4. There are four ascending levels of unpleasant working conditions. The corresponding
allowances per quarter are:
Level
0
1
2
3

Allowance
Nil€ 28.60€ 50.40€ 76.25

5. The allowance is based on the uninterrupted existence of the unpleasant conditions during thewhole working time. If such conditions exist only during part of the working time a pro rata
payment will be made.
6. As a rule the allowance will be paid monthly.
SECTION 8: FREE TIME, LEAVE AND INFORMAL CARE

A r t i c l e 8.1
Informal care
Insofar as applicable, the arrangements in this chapter can also be used for the purpose ofproviding Informal Care. The employee will engage with employee requests within the context ofInformal Care in a positive dialogue, in order to reach the most optimal possible agreements andsupport. The options for temporarily working fewer hours will be described in more detail in a
separate arrangement.
A r t i c l e 8.2
Holidays1.

Holiday entitlement
a. The holiday year coincides with the calendar year.
b. Employees who are in the company's service on the first working day of the calendar year
are entitled to 25 days' holiday for that year, subject to the provisions of clauses 3 and 4 ofthis article.
c. Where there is a collective holiday period of 2 or 3 weeks, the employee receives 1 or 2
extra compensatory days' holiday respectively.

2.

Holidays for persons commencing employment in the course of the calendar year
a. Employees who commence employment in the course of the holiday year are entitled forthat year to a proportionate number of days of the holiday entitlement. For employees whocommence employment in the course of the month, this month counts towards the
proportionate amount of holiday.
b. Employees who, on commencing employment, prove that they have a claim to unpaid leaveon the grounds that they have holiday outstanding from their previous employer shall beallowed to take these days in the course of the calendar year in which they commence
employment. The other provisions of the holiday regulations apply to this unpaid leave.

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PAGE 22

1 January 2018 through 31 October 20193.

Holidays for persons whose employment terminates in the course of the calendar year
Employees whose employment terminates in the course of the calendar year are entitled forthat year to a proportionate number of days of the holiday entitlement. For employees whose
employment terminates before the end of a month this month does not count towards the
proportionate amount of holiday. If too many days' holiday have been taken, they will be offset
against the last payment.

4.

Holiday entitlement in exceptional circumstances
a. There is no entitlement to holiday for a period in which there was no claim to salary because
the stipulated work was not performed.
An employee is, however, entitled to holiday in the cases and for the periods referred to in
Article 635 of Book 7 of the Civil Code, as well as in the case of unpaid leave as covered byclause 2b of this article and leave of absence permitted by the employer as covered by
Article 14.5 of this CEA.
b. The provisions of clauses 2 and 3 of this article apply equally at the end and/or the beginningof a period during which there is no entitlement to holiday in pursuance of clause 4a of thisarticle.

5.

Unfitness for work and other reasons for absence during holidays
Collective holidays during which employees are unfit for work, or are affected by events suchas those stated in Article 8.10 of this section (Paid leave), are not considered to have beentaken as holidays, provided that the circumstances are reported in the prescribed manner.

6. Payment and expiry of holidays
a. Employees’ salaries continue to be paid for holidays taken.
b. An entitlement to holidays not taken expires after 5 years, calculated from the end of theyear in which the entitlement arose.
c. Payment may be made annually only, at the end of the year, for a maximum of 5 holidays(in excess of the statutory minimum).
7.

Using holidays
a. In principle, holidays must be taken in the calendar year in which the entitlement arises.
b. If there is no collective holiday period, then, provided that he/she notifies his/her manager wellin advance what period of consecutive holidays he/she wishes to take, an employee may
determine his/her own holiday period, unless the required staffing level in the corresponding
period does not permit this.
c. For taking other holidays, it is sufficient to do this by prior verbal arrangement.
d. The employer requires the consent of the Works Council for designating the collective holiday
period. Article 27 (clauses 3, 4 and 5) of the Works Council Act is applicable.
e. Having regard to the provisions of d., the employer can designate a maximum of 15 days
for continuous holiday periods. This choice shall in principle be made before 1 January of
the holiday year.
f. If in the opinion of the employer, the interests of the Company so demand, the employer can,after consultation with the employee, change a holiday that he has designated. The damage
suffered by the employee as a result of this change will be made good by the employer.

8.

Holidays for employees working flexible (shift work) rosters
a. For (shift) workers who have a duty roster with working hours which, with due observanceof the provisions of Article 6.2, are other than 8 hours per period of duty, the holiday
entitlement is fixed in hours.
b. For holidays, the actual number of hours according to the duty roster is deducted from theholiday entitlement.

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PAGE 23

1 January 2018 through 31 October 2019A r t i c l e 8.3
Collective free days
The employer may, in consultation with the Works Council, designate 5 free days for all or for agroup of the employees concerned.
For employees in a 5- or 4/5-crew shift work roster with an average weekly working time of 31.5 to37.5 hours, only 1 day may be designated instead of 5.
The employer requires the consent of the Works Council to designate more free days for all or fora group of the employees concerned.
A r t i c l e 8.4
Purchased days
1. Employees can purchase 20 free days annually (‘purchased days’).
2. It is possible to purchase half or complete days.
3. The same conditions apply to taking these days as to taking holidays. The conditions are set
out in Article 8.2, clauses 7b and 7c.
4. The value of a purchased day is: the number of hours x 0.682% of the full-time monthly salary.
5. At the end of the year, employees are able to purchase 13 days at once for the following
calendar year.
A r t i c l e 8.5
Life Course Scheme
1. Up until January 2012, there was an option to participate in the Life-course Savings Scheme.
The Life Course Scheme has two components: the Life Course Savings Scheme and the Life
Course Leave Scheme. The life course savings scheme enables employees to accumulatesavings, while the life course leave scheme provides for various forms of leave for which thesavings can be used. The following applies to those employees who still have a positivebalance.
2. Leave under the life course scheme is long-term leave. It can be divided into:- Leave during employment. This leave has a lower limit of 4 times the weekly working timeand an upper limit of 52 times the weekly working time. The leave can be taken part-time or
full-time. The maximum period between the starting and finishing date of the leave is one
year. An application can be made for full-time leave when an employee has been in the
Company’s service for at least one year.
- Leave prior to retirement. The maximum period between the starting and finishing date ofthis leave is three years. The leave can be taken part-time or full-time.
At least 50% of the loss of income resulting from the taking of life course leave must be madegood by the life course savings.
In principle, the same conditions of employment/employee benefits that apply to part-time work
apply when life course leave is taken.
3. The life course savings can also be used to compensate for the loss of income when leave istaken under the Work and Care Act.

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PAGE 24

1 January 2018 through 31 October 2019A r t i c l e 8.6
Care leave
1. The Work and Care Act (“Wet Arbeid en Zorg”) gives employees certain rights with regard tocare leave. The leave for which provision is made is emergency leave, short-term care leave,long-term care leave, partner’s childbirth leave, pregnancy and maternity leave, adoption andfoster care leave, and parental leave.
2. Some of these forms of leave are (partly) paid leave, while others are unpaid leave.
3. During pregnancy and maternity leave, as well as during adoption and foster care leave, as
defined in articles 3.1 and 3.2 of the Work and Care Act, the employer pays 100% of the income
earned during work, provided that the employee, in consultation with the employer, has
determined the date of commencement of the leave 10 weeks before the presumed date ofchildbirth or date of adoption or foster care.
4. The CEA provides for a number of ways, in addition to the statutory arrangements under theWork and Care Act, of taking care leave. They are:
- purchased days
- life course leave- (temporary) part-time working
5. An employee can use savings under the life course scheme as compensation for the loss of
income resulting from unpaid leave.
A r t i c l e 8.7
Payment during holidays and leave of absence
An employee will be paid his/her salary – including for shift workers the appropriate shift work
allowances – for holidays and paid leave of absence as specified in Articles 8.9 and 14.5.
A r t i c l e 8.8Compensation for holidays not taken
If payment is made to an employee for holidays not taken, the employee receives for each hour,
as a percentage of the full-time monthly salary: 0.682%.
A r t i c l e 8.9
Unpaid leave of absence
1. The employer is in no way responsible for paying an employee for time during which theemployee has not carried out the work stipulated.
2. Nor does the employee have any claim to payment under the circumstances referred to in
Articles 628 and 629 of Book 7 of the Civil Code unless otherwise stipulated in Articles 8.9, 14.5
and Appendix A of this CEA.
3. Except in the event of unfitness for work, absence is not permitted without the express
permission of the employer
4. The employee may use his or her savings under the Life Course Scheme, as referred to in
Article 8.5, as compensation for income lost during unpaid leave of absence.
5. The employee is entitled to take a sabbatical of 3 consecutive months once every 3 years. The
holiday entitlement for the year in which the sabbatical starts can be used for this period of
unpaid leave.

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PAGE 25

1 January 2018 through 31 October 2019A r t i c l e 8.10
Paid leave of absence
1. Paid leave is allowed for participating in or attending the following events, for the time thereby
stated, if the employee cannot otherwise be present at them.
a. Death of the husband (wife) or partner, a child, parent, grandparent, brother, sister,daughter-in-law law or son-in-law of the employee: the amount of time necessary, but nomore than 1 working day.
b. Death of the husband (wife) or partner of the employee or of a child or parent of theemployee who lived with him (her): the days between the death and the funeral.
c. Funeral of the husband (wife) or partner, a child, parent, grandparent, brother, sister,brother-in-law, sister-in-law, son-in-law, daughter-in-law or grandchild of the employee: 1
day.
d. Celebration of the 25th or 40th anniversary of the employee's service with the company: 1
working day.
e. 25th or 40th anniversary of the employee's service with the company: one working week
This working week may be taken, according to the employee's choice, in the year of theofficial celebration or in the following calendar year.
Payment for this week in lieu of time off is possible in consultation with the company.
The entitlement to paid leave of absence for a 25th or 40th anniversary of the employee’s
service with the company ceases to apply for anniversaries on or after 1 January 2016.
f. In the period of 3 years prior to the pensionable age for attending a course in preparation
for retirement: a maximum of 5 working days.
g. For the birth of the employee’s child: to take off a period of twice the working hours per week
per event, to be used during a time period of four weeks, counting from the first day after
giving birth.
h. For the employee’s wedding or the registration of the employee’s registered partnership
and/or the employee’s 25th or 40th wedding anniversary: 1 day per event.
N.B.:
As well as in the case of a registered partnership, a person with whom the employee cohabits
and shares a common household is regarded as a partner if the cohabitation and sharing of thecommon household are proven by a notarial deed.
Where reference is made above to "parents" and "grandparents", this is also understood tomean the parents and grandparents respectively of the employee's spouse or partner.
2. In so far as visits to a general practitioner, dentist, midwife, specialist or physiotherapist cannot
be made in the employee's own time and it is not possible to shift working hours, an employee's
salary will continue to be paid during the time necessary for such visits.
3. An employee is also allowed paid leave for other circumstances and for longer periods thanstated in clause 1 of this Article if exceptional circumstances so justify in the opinion of theemployer.

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PAGE 26

1 January 2018 through 31 October 2019A r t i c l e 8.11
Paid leave for employees aged 62 and older (5 x 60 scheme)
1. This article applies to employees in job grades 10 to 45.
2. From the age of 62, employees have the opportunity to take 60 hours of leave each year without
loss of pay. This scheme can be used for a maximum of 5 years.
In the event of an employee being unfit for work during part of a year and for employees who
work part-time, the number of hours of paid leave will be calculated pro rata. Employees who
exercise the option of working a reduced number of hours in accordance with Article 6.5 are
not entitled to extra hours of paid leave under this clause.
3.

The employer and the employee will jointly decide when these hours can be taken. Payment
in money in lieu of this leave of absence is not permitted.

SECTION 9: OTHER EMPLOYEE BENEFITS
A r t i c l e 9.1
Employee share purchase plan
1. The employer will give employees who have been in the Company’s service for at least six
months the opportunity to participate in the employee share purchase plan.
2. Each year an employee can use a maximum of 10% of his/her annual salary to purchase sharesin Royal Philips at a discount of 15%.
3. A holding period of 6 months applies to these shares.
4. The employer shall notify employees in good time of the conditions for the employee sharepurchase plan.
A r t i c l e 9.2
Pension plan

1. Prevailing pension schemea. Each employee takes part in the Philips flex pension scheme. The implementation of thepension scheme has been entrusted to the Philips Pension Fund Foundation (‘the fund’).
The Philips flex pension scheme is a pension scheme with a fixed pension premium
defined by the employer (collectively available premium scheme).
b. The rights and obligations of employees resulting from participating in the pension scheme
can be found in the articles of association and the Philips flex pension scheme of the fund.
The intended documents can be accessed through the website of the fund. It is also
possible to request a version of the articles of association and the prevailing pension
scheme from the fund.
c. Participation in the pension scheme does not apply to:- employees who have been exempted from the obligations imposed by or pursuant tothe social security laws due to conscientious objections;- employees who have been exempted from participating by the employer.
At their request, these employees can still participate in the Philips flex pension scheme
at any time; participation will start from that moment and they will not be entitled to any
pension for their employment years up to that point.

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1 January 2018 through 31 October 2019

2. Standard retirement age / (elective) retirement age
a. As of 1 January 2018, the retirement age has been set at the age of 68 years old.
b. Unless the participant has chosen a deviating retirement age subject to the provisions ofparagraph c, the pension entitlement age will be the same as the retirement age applicableto the participant.
c. Each participant in the Philips flex pension scheme is entitled to make a one-time choice
to take early retirement at an age that is between 60 years and the standard retirementage. The choice needs to be reached no sooner than when reaching the age of 58 but nolater than six months before reaching the intended retirement age. After obtaining theemployer’s consent, the pension age can be postponed to a maximum age of 70 years.
Any agreements about this need to be formalized no later than six months before reaching
the standard retirement age.
3. Premium contribution
The employee will pay a personal income-dependent contribution towards the pension premium.
The amount of the personal contribution will be determined by the parties to the collective
employment agreement.
The personal contribution amounts to 2% of the pensionable earnings.
The employee authorizes the employer to withhold the pension scheme premiums that theemployee owes from the gross monthly salary. The employer arranges payment of the total
pension scheme premiums owed to the fund
4. Pension allowance
Each participant in the Philips flex pension scheme whose fixed pensionable salary exceeds the
maximum pensionable salary from the pension scheme is entitled to a pension allowance of
15% of the difference between the fixed pensionable salary and the maximum pensionablesalary. At the end of the calendar month, in conjunction with the payment of the monthly salary,
the pension allowance shall be paid, taking into account the applicable part-time percentage.
5. Temporary pension allowance
Participants in the Philips flex pension scheme on 31 December 2014 who a) were alreadyparticipants and b) who had an annual salary of €80,000 or more are entitled to a temporary
pension allowance. The temporary pension allowance is paid on a monthly basis from 1 January
2015 to 31 December 2021. In 2022, 2023 and 2024 75%, 50% and 25% of this amount will be
paid respectively. The temporary pension allowance is determined once according to thefollowing table based on your salary as of 31 December 2014.
Temporary gross pension allowance per month on a full-time basis.

PG70

Annual salary≥€80,000 <€85,000≥€85,000 <€90,000≥€90,000 <€95,000≥€95,000 <€100,000≥€100,000 <€105,000≥€105,000 <€110,000≥€110,000 <€115,000≥€115,000 <€120,000

Temporary pension
allowance
€
60.00
€
95.00
€
130.00€165.00€200.00

PG 80/90
Temporarypensionallowance€
105.00€145.00€185.00€225.00€265.00€300.00€340.00€380.00CEA Philips

PAGE 28≥€120,000

1 January 2018 through 31 October 2019€420.00Participants in the Philips flex pension scheme on 31 December 2014 who a) were already aparticipant and b) who had a gross annual salary of less than €80,000 are entitled to a temporary
pension allowance the moment their gross annual salary exceeds the €80,000 mark. At thattime, the temporary pension allowance will be determined once according to the table and paidout on a monthly basis. The temporary pension allowance will be paid until 31 December 2018.
Employees who have become participants in the Philips flex pension scheme with a grossannual salary exceeding €80,000 are entitled to the temporary pension allowance. At the timeof participation, the temporary pension allowance will be determined once according to the tableand paid out on a monthly basis until 31 December 2018.
The annual salary is considered to be 12 times the monthly salary excluding personal budget.

6. Voluntary net pension schemea. Each participant in the Philips flex pension scheme whose fixed pensionable salary exceeds
the maximum pensionable salary as documented in the Philips flex pension scheme isentitled to voluntarily participate in the net pension scheme as implemented by ABN AMRO
Pensions. Participation takes place by paying premiums; at any desired time, participation
can start or cease.
b. The rights and obligations of employees arising from participating in the voluntary net pension
scheme can be found in the ABN AMRO Pensions pension scheme. This document can beaccessed through the website of ABN AMRO Pensions.

A r t i c l e 9.3
Payment during unfitness for work
The provisions regarding payment during unfitness for work are contained in Appendix A to this
CEA. These provisions are not applicable to employees who entered into employment with theCompany on or after the AOW (state pension) age and employees who continue to work after
reaching the age of 67. If the AOW age is higher than the age of 67, the AOW age is applicable.

CEA Philips

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1 January 2018 through 31 October 2019

SECTION 10: EMPLOYMENT AND EMPLOYABILITY
A r t i c l e 10.1
Employment
1. Within the framework of a balanced promotion of the interests of all with whom he is concerned,
the employer pursues a policy of maximum useful employment. In this respect his policy is
focused on the greatest possible continuity of the work relationship with his employees,
although no guarantees can be given on this.
2. For the duration of this CEA the employer shall not resort to the collective dismissal of
employees who were in his service at the time of the conclusion of the agreement or who enterhis service while the agreement is in force, unless exceptional circumstances make itnecessary. In this case he shall not decide on such action before having engaged in exhaustive
consultation with the organizations and with the appropriate Works Council. In this consultation
particular attention shall be paid to the circumstances previously mentioned.
3. In the event of a lasting or temporary reduction in or discontinuation of work the employer shalldo everything possible to offer alternative employment. If this necessitates secondment,
transfer to another job and/or transfer to another department, location or to one of theemployer's associated companies, the employees shall cooperate in this in a reasonable
manner. The employer and the organizations recognize that such cooperation is also of great
importance with a view to being able to comply with the provisions of clause 2 with regard tocollective dismissal.
4. The appropriate UWV-WERKbedrijf shall be informed of all vacancies to be filled externally. At
the same time it shall be told to what extent these vacancies can be filled by young persons or
persons with a work disability and to what extent part-time work is possible.
5. The employer shall only use outside workers if vacancies cannot be filled normally, or cannot
be filled within the time required, or if the vacancies to be filled are of a temporary nature. The
employer shall observe the relevant statutory regulations applicable to this situation. If, in acertain organizational unit, more extensive use has to be made of outside workers, theemployer shall not proceed with this before having given the appropriate Works Council theopportunity to voice its opinion on the matter.
6. Despite the Company's aim of continuity of the work relationship, the loss of jobs may be
unavoidable. However, if the employer then sees no alternative to collective dismissal, theprovisions of clause 2 shall apply.
A r t i c l e 10.2
Employability
1. The way in which the employee and the organization function at present and in the future areclosely related. Development is an important precondition for guaranteeing the present andfuture performances of both the organization and the individual employee and for promoting job
security in the shorter and the longer term. Development is a joint responsibility of employer
and employee. Both employer and employee contribute to development in terms of time, effort
and costs.

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2. The employer:- pursues a policy aimed at promoting the employee’s employability now and in the future;- is responsible for creating conditions that enable the employee actually to develop. In thatconnection the employer will formulate an employability plan for each organizational unit;- will give the employees the opportunity to develop their knowledge and skills, and to adapt
them to technological and other developments, the aim being to enable employees tocontinue to perform a suitable job within the Company and to be eligible to fill vacancies;- Recognizes the right to education and will assist employees to participate in internal andexternal education and training activities. Such education and training activities will takeplace after or during working hours, according to their nature and the reason for them;- will make at least 2 education and training days available to every employee per year.
3. The employee:- is conscious of his/her own responsibility for increasing his/her employability (and isprepared to make appropriate efforts in this regard);- will have to take his/her responsibility to develop in such a way as to maintain his/her
employability, and hence his/her job security, now and in the future.
4. Employees are entitled to receive structured feedback on their performance. In order to give
substance to employability in a structured way, the employer and the employee jointly draw up
a Personal Development Plan each year. Such a plan may be aimed at the individual career inthe shorter or longer term and also at increasing job security in the future. During the discussionof the personal development plan, agreements may be made on the length of time for which
the employee is to remain in the present job.
5. Functional mobility is a precondition for maintaining employability. A transparent internal labormarket is of great importance in this connection. The starting point is that all vacancies are tobe published on the Philips Careers site. Vacancies should preferably be filled by employees
who are already in the Company’s service, while the employer should as far as possible take
into account the future possibilities and personal circumstances of the employee.
6. In order to increase the scope for personal development, employees will be granted E-miles on
1 January of every year throughout the term of the CEA.
The range of products will be updated each year. These E-miles entitle employees to services suchas workshops, tests, coaching and career advice meetings, all with a view to promoting theiremployability. The basic assumption is that these services will be offered during working time. The
professionalism, independence and confidentiality of the services will be guaranteed.
A r t i c l e 10.3
Internal and external job placement and career guidance
Job placement and career guidance activities are of great importance in organizations which are
undergoing change. Greater concern for aspects such as the mobility and employability of
employees is desirable. Job placement and career guidance activities can be significant in thisconnection.
In order to make such activities effective, use is made of the support given by or on behalf of thelocal HR departments. To enhance employee mobility and employability, help can be sought fromexternal parties who have knowledge of the Philips culture and can support employees in thisregard, for instance by making use of the range of e-miles products.

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Trade union organizations can also offer such support to their members. The associated costs will
be borne by the trade union organizations.
Depending on the circumstances, job placement and career guidance support can consist of things
such as:- guidance regarding personal potential;- retraining and further training;- training in making job applications;- obtaining an insight into the existing possibilities on the labor market, both internally andexternally (labor market guidance);- job hunting, i.e. targeting specific vacancies.
To promote job placement and career guidance activities, a support committee composed ofrepresentatives of the employer and the employees may be established in the organizational unit
concerned in the event of job cutbacks.
Even in a situation where there are no job losses, job placement involving the help of the HR
department concerned can take place on the initiative of the organizational unit or the employee.
SECTION 11: WORKING CONDITIONS
A r t i c l e 11.1
Working conditions
1. The employer undertakes to provide good and safe working conditions and an organization ofwork such that the employee can use and develop his/her gifts and abilities as far as possible
and such that everyone is able to bear the responsibilities of his/her job.
2.

a. The employer shall at all times give the greatest consideration to physical working
conditions
by, for example:- taking appropriate measures for his employees- giving information to and consulting with the Works Councils on matters of safety- giving information and instructions to employees about dangers at work, the relevant
safety regulations and the steps to be taken by them in the event of breakdowns orirregularities- making available, where necessary, means of personal protection
b. The employee shall pay due regard to his/her own safety and to that of his/her fellow
employees. He/she shall do so by:- familiarizing himself/herself with the regulations, paying regard to the safety rules andcomplying with any instructions that are given- making a contribution, at any consultative level in which he/she is involved, tomaintaining and as far as possible improving safety- notifying his/her manager of any perceived hazards- using the means of personal protection made availablec. The employer shall ensure that the services employed in his establishments for providing
help to individual employees are properly equipped and organized.

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SECTION 12: INFORMATION AND CONSULTATIONA r t i c l e 12.1
Works Councils
1. In every technical-organizational unit designated by the employer, consisting of at least the
number of employees entitled to vote as stated in the Works Councils Act, there is a Works
Council functioning as an internal consultative and advisory body.
2. The employer will ensure that an employee is not disadvantaged in his position as employee of
the Company either on account of membership of a Works Council or on account of thecarrying-out of that membership.
A r t i c l e 12.2
Announcements
Announcements which are issued by the employer and intended for employees and which are
made known to them through the medium of the Company newspaper or via the notice boards inthe establishments will be deemed to have been communicated to each employee individually andpersonally.
SECTION 13: COMPANY DISCIPLINE/INTERNAL APPEALS PROCEDURE
A r t i c l e 13.1
Disciplinary measures
Depending on the seriousness of the matter the employer can take the following disciplinary
measures against an employee who does not observe his obligations arising out of the contract of
employment:
a.
b.
c.
d.
e.

reprimandsuspension without pay up to a maximum of five working days
downgrading
dismissal with the applicable period of noticedismissal without the applicable period of notice (dismissal for compelling reasons as covered
by Article 678 of Book 7 of the Civil Code)A r t i c l e 13.2
Internal appeals procedure1.

For every organizational unit in which a Works Council exists the employer shall, in
consultation with the Works Council, lay down a complaints procedure on the basis of rules
agreed between the parties.

2. The employee's right to take the case to an ordinary court is not affected by the complaints
procedure.
3. At least once a year, as part of the discussions on the general state of affairs as referred to in
Article 31b of the Works Council Act, general information on the treatment of complaints in theorganizational unit concerned is provided in writing to the Works Council.

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SECTION 14: REGULATIONS REGARDING TRADE UNION ORGANISATIONS
A r t i c l e 14.1
Obligations of the trade union organizations
The trade union organizations shall promote the observance in good faith of the conditions of this
CEA its members.
A r t i c l e 14.2
Mutual obligations
1. The parties shall observe and maintain this CEA in good faith.
2. For the duration of this CEA the parties shall not take any action among the employees that is
intended to change the conditions of employment laid down in this CEA
3. If, while this CEA is in force, one of the parties should consider a change in the agreement
necessary owing to special circumstances, it shall notify the other parties in writing. The parties
shall immediately open negotiations on the matter and conduct them in a spirit of cooperationand trust.
A r t i c l e 14.3
Industrial peace, strikes and lockouts
1. The trade union organizations shall as far as possible promote the uninterrupted continuationof the Company's activities and shall try to prevent disturbance of industrial peace. They shallnot resort to any strike while this CEA is in force.
2. The first clause does not apply if the Company is considering or has decided on:- a merger;- the closure of an establishment or organizational unit and/or the radical reorganization of
its personnel; and the trade union organizations have very serious objections to this fromthe point of view of the interests of the employees. The trade union organizations shall only
resort to a strike, however, after consultation with the employer.
3. The employer shall only use a lockout as a countermeasure to strikes and shall only resort tosuch action after consultation with the trade union organizations.
4. In the event of a strike or industrial disturbance the trade union organizations shall contributeas far as possible to the continuation of work necessary for the preservation of materials andinstallations.
A r t i c l e 14.4
Settlement of disputes
1. Disputes between the employer and one or more of the organizations arising from this CEA
shall as far as possible be settled in an amicable manner.
2. If the parties involved in the dispute have not reached agreement within two months of thewilling party having made known its point of view concerning such a dispute to the other parties
to this agreement in writing, the dispute can be brought before a court.

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3. In addition, the parties retain the right at all times to ask for a settlement in interim injunction
proceedings.
A r t i c l e 14.5
Leave of absence for the requirements of the trade unions
The employer shall, if he feels that the work situation allows, grant paid leave of absence to an
employee at the request of his/her organization, for:a. taking part in educational and training meetings held by his/her organization;b. taking part as a delegate in official meetings of bodies mentioned in the statutes of his/herorganization or comparable bodies;c. taking part in consultations of paid officials of the trade union organizations with the
management of the establishments of the employer. One senior trade union (executive
committee) official may take part in these consultations for each establishment. The paid
officials shall be given the opportunity to confer for one hour before and after these
consultations with (executive committee) members of their organization (not more than 3-5
members) in the establishment concerned.
The provisions of a. and b. are described more fully in the “Trade Union Leave Regulations” agreed
by the parties.
A r t i c l e 14.6
Trade union work in the employer's establishments
In order to facilitate contact between the trade union organizations and their members and among
the members themselves and also to enable the trade union organizations to support the elected
members of the Works Council in their work the employer shall cooperate with the trade union
organizations as follows:
1. The chairman of an establishment members group or another member of the executive
committee of the group designated by the chairman can, with due regard to the relevant
directives agreed by the parties, have contact with:a. members of the organizations in the establishment where he works, but outside working
hours; if in the view of the parties special circumstances are involved, this is also possible
during working hours;b. paid officials of his organization during working hours if circumstances make this impossible
at short notice outside working hours;c. members of the Works Council of this establishment during working hours.
2. The trade union organizations shall, with due regard to the relevant directives drawn up by theparties:a. be given the opportunity on their own responsibility to make use of the notice boards
provided by the employer.
The notices shall relate exclusively to the organizations and/or the functioning of theorganizations and shall not be concerned with individuals;
b. in so far as the notice boards mentioned under a. are not available, be able to announce
meetings of the organizations, through the company, on the notice boards in theestablishments. If these notices show more than the time, place and subject of the meeting
to be held, the permission of the employer is required for their publication;

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1 January 2018 through 31 October 2019c. receive copies of general establishment announcements to employees;
d. receive the documents which are sent by the employer to the members of the Works Council
for the meeting of the Works Councils and also receive the agendas and reports of theWorks Council meetings provided that the Works Councils agree; the organizations shall
only publish extracts from these internal documents with the permission of the employer;
e. be able to have informal discussions with establishment managers nominated for thispurpose by the employer.
3. A shift worker who is a member of the executive committee of the establishment members
group if his organization can attend a meeting of this group without loss of salary, if in theopinion of the employer work permits this.
4.

a. The employer shall ensure that an employee who holds a trade union position does not
suffer in his/her position as employee of the company on account of carrying out his/hertrade union work.
b. An employee holding a trade union position will not be dismissed if he/she would not bedismissed if he/she were not a trade union member.
c. An employee holding a trade union position is understood to mean a member of theexecutive committee of the establishment members group, a member of the sectional
executive committees that fall thereunder and an employee member of the CEA negotiating
delegation, if and insofar as he or she has been registered as such with the employer by
the trade union organization.
d. The activity of an employee holding a trade union position can be entered as a competency
on a CV and/or included in an E-portfolio.

5. Once a year the employer shall, at the request of the trade union organizations, assist in
bringing the membership lists of the trade union organizations up to date.
A r t i c l e 14.7
Payments to the organizations
The parties named under 1. to 1.5. shall jointly pay a sum to the organizations mentioned under 2
to 5 in accordance with the "Arrangement for payments to the trade union organizations" agreed
by the parties.
A r t i c l e 14.8
Consultation about employment
1. The employer shall periodically inform the trade union organizations at the central consultation
meetings (at least twice per year) about the general state of affairs in his establishments.
Particular attention shall be given to developments in the economic sphere, investment andemployment (including the position of women, age-conscious human resources policy, thepromotion of entrepreneurship, the Philips Employment Scheme and education and training).

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2. If the employer is considering:a. investment that will lead to significant contraction, expansion or changing of the work of anorganizational unit;
b. closing or radically changing the staffing of an establishment or organizational unit;c. a merger, as covered by the Social and Economic Council's 2000 decree on rules for the
conduct of mergers;
he shall take the social consequences into account in making his decision.
3. In this connection the employer shall inform the trade union organizations, the appropriate
Works Council(s) and the employees of the measures considered as soon as any necessary
secrecy allows.
4. Linked with this the employer shall discuss with the trade union organizations and the Works
Council(s) concerned the measures considered and the possible consequences resulting fromthem for the employees or a number of employees.
5. The financial arrangements involved in a "social plan" shall be at the expense of theemployer, in so far as there is no provision in a statutory regulation.
A r t i c l e 14.9
Government measures
If the government passes legislation relating to such things as the development of wages andsalaries, the social insurance acts or working hours that affect the agreements reached between
the parties, the relevant provisions of this CEA shall end on the date that such legislation comes
into effect.
The parties shall then meet to discuss the matter as soon as possible and establish which
provisions shall continue to apply. If necessary, the parties shall take temporary measures in theinterim until agreement can be reached about the new provisions.
A r t i c l e 14.10
Decentralized consultation meetings
In addition to the central consultation meetings between the parties, as referred to in Article 14.8,
clause 1, regular consultation meetings take place in organizational units on the initiative of the
management or the employee organizations concerned. Among the subjects that may be dealt withat such meetings are the following:-

Business performanceThis covers the sales and financial results of the organizational unit concerned, as well as any
special projects and activities.

-

Employment
In connection with the business performance, information is provided about the expected trends
in the nature and scale of local employment. In this connection it is also possible to discuss themeasures regarding employability which have been taken, or may be taken, in view of the
expected trend.

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1 January 2018 through 31 October 2019-

Flexibility
In connection with the increased need for flexibility, specific examples of flexibility models may
be dealt with, such as flexible forms of contract, temporary employees from employment
agencies, flexible duty rosters, part-time working, and working on Saturdays.

-

Employment Scheme
The local activities in connection with the Employment Scheme, such as concern for special
categories in the labor market, and training activities for participants in the Employment
Scheme.

-Position of womenThis covers things such as concern for women in recruitment and selection, career and training,as well as the situation regarding parental leave and day care centers.

-

Training
Efforts relating to training in the organizational unit, including the discussion not only of overall
participation but also of participation according to, for example, job level, age and type oftraining.

-

Career policy
The way in which career policy is handled within the organizational unit, depending on thenature of the work, composition of the workforce, educational qualifications, etc.

-

Policy regarding salary and assignment to job grade
The way in which the policy regarding appraisal, salary and assignment to a job grade is
implemented can be raised. Information is provided each year at the level of plant andorganizational unit in the form of the statistics on salary policy (with collective guarantees).

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1 January 2018 through 31 October 2019

Thus agreed in Eindhoven on 26 September 2018.
On behalf of Philips Electronics Nederland B.V.
both for itself and for parties 1.1. to 1.5.
Senior Director
S. Verzijden

Senior Director
J.J. de Jong

On behalf of parties 2 to 5

FNV
Executive officer:
P.J.M. Reniers

VHP2
Senior Director/Executive officer:
J.Sauer

CNV Vakmensen.nl
Chairman: P. Fortuin

De Unie
General chairman: R. Castelein

Executive officer: A. Huizinga

Chairman of Philips enterprise group:
S. Koetloe

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1 January 2018 through 31 October 2019

APPENDIX APAYMENT DURING UNFITNESS FOR WORK
1. Payment of wages during the first 104 weeks of unfitness for work.
a. Notwithstanding the provisions of Article 629 (1) of Book 7 of the Civil Code regarding thescale of remuneration during unfitness for work, the employer will pay the employee asfollows during unfitness for work:
1. for the first 6 months of unfitness for work, 100% of the remuneration
2. after the first 6 months of unfitness for work, 90% of the remuneration.
b. If after the first 6 months of unfitness for work the employee is performing suitable work witha number of working hours of 75% or more, the employer will pay 95% of the remuneration.
c. During the period that an employee is entitled in the second 6 months of unfitness for work
to a benefit under Article 6 of the WIA (Work and Income According to Labor Capacity Act),the employer will pay 100% of the remuneration.
d. If it is ascertained by the industrial medical officer that unfitness for work cannot be said toexist and the employee requests the UWV for an expert opinion, the UWV’s expert opinion
will be respected.
e. For this article, periods of unfitness for work will be added together if they follow one anotherwith an interruption of less than 4 weeks.
f. If the UWV obliges the employer to continue to pay the remuneration after the first 104
weeks, the employer will pay 90% of the remuneration.
g. The employee is obliged to cooperate in a medical examination carried out by an industrial
medical officer to be designated by the employer and to follow the instructions of this doctor.
The employee is obliged to comply with the applicable rules of conduct during unfitness forwork.
h. If the employee does not cooperate in a medical examination, does not comply withapplicable rules of conduct and/or instructions given by the industrial medical officer, theright to supplementation of the statutory entitlement to continued payment of remuneration
during unfitness for work is forfeited.
2. Payment after 104 weeks of unfitness for work
a. The employer will supplement the statutory benefit for a maximum of one year for an
employee who is completely unfit for work within the meaning of the WIA to 90% of his or
her gross salary, if and for so long as the employee has authorized the company to receiveon his/her behalf, for inclusion in the payment made to him/her, the benefits payable under
the incapacity insurance legislation. If the contract of employment is terminated at the
beginning of that year or in the course of that year, the supplementation of the statutory
benefit for the remaining period of that year will be paid as a lump sum when employment isterminated.
b. The employer will pay to an employee who is entitled to a wage-related benefit or a wagesupplementation benefit under Article 7 of the WIA (WGA provisions) and who is performing
suitable work a supplement to the WGA benefit, if and for so long as the employee has
authorized the company to receive the benefits on his/her behalf, for inclusion in the payment
made to him/her.

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1 January 2018 through 31 October 2019

The income that is earned with the suitable work together with the WGA benefit and the
supplement paid by the employer amounts to:- 80% x (A – B) + B, during the wage-related benefit and during the wagesupplementation benefit if the employee utilizes at least his or her remaining earning
capacity;- 80% x (A – C) + B, during the wage-supplementation benefit if the employee utilizes atleast 50% of his or her remaining earning capacity;- where A stands for the gross income, B for the income earned with the suitable work
and C for the remaining earning capacity determined by the UWV.
c. The employer will supplement the lower income of an employee who is not entitled to abenefit under the WIA because the unfitness for work is less than 35% and who is performing
suitable work.
The supplement is as follows:
3rd year of sickness 80% x (90% of the gross income minus the remaining earning capacity)
4th year of sickness 70% x (90% of the gross income minus the remaining earning capacity)
5th year of sickness 60% x (90% of the gross income minus the remaining earning capacity)
6th year of sickness 50% x (90% of the gross income minus the remaining earning capacity)
7th year of sickness 40% x (90% of the gross income minus the remaining earning capacity)
8th year of sickness 30% x (90% of the gross income minus the remaining earning capacity)
9th year of sickness 20% x (90% of the gross income minus the remaining earning capacity)
10th year of sickness 10% x (90% of the gross income minus the remaining earning capacity)
11th year of sickness 0% x (90% of the gross income minus the remaining earning capacity)

3. Further rules will be drawn up internally by the employer for the definition of the term “income”,
as referred to in the various clauses of this Article.
4. There are further company-internal rules for employees who during their working period at
Philips have been granted a benefit under the WAO (Incapacity Insurance Act).

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APPENDIX B (to Article 7.5)
EXPLANATION OF THE METHOD OF CALCULATING THE MONTHLY SALARY FOR SHIFTWORK AND THE SHIFT WORK ALLOANCE-

The monthly salary of a shift worker is calculated by multiplying the monthly salary according
to Article 5.1 of this CEA by the basic percentage.

-The basic percentage is calculated as follows:
the number of hours actually to be worked in a cycle

cycle x 40*
The shift work allowance is calculated by dividing the total of the inconvenience of the working
hours and break times in a cycle in accordance with the inconvenience diagram in Article 7.5 clause
3 of the present agreement by the number of hours actually to be worked in a cycle. The figure
obtained is multiplied by the basic percentage-

The formula for calculating the shift work allowance is as follows:
total allowance in a cycle
x basic percentage
number of hours actually to be worked in a cycle**-

For an example of how the monthly salary shift work and the shift work allowance arecalculated, refer to the brochure “Regulations for the remuneration of shift workers”(Beloningsregelingen ploegenwerkers).

 For the 4/5- and 5-crew shift work rosters (continuous working with full complement of
employees) and duty rosters derived from these, the calculation is based on 38 hours per week.
** The calculation of the monthly salary for an employee in a 4-crew shift work roster is based on
150 hours to be worked in a cycle, while the calculation of the shift allowance is based on 157.5
hours in a cycle.

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APPENDIX CSALARY CUTBACK REGULATIONS FOR SHIFT WORKERS

1. Employees who cease shift work and are transferred to a different duty roster with a lower
monthly salary are covered by the salary cutback regulations.
- The cutback amount is equal to the difference between the former monthly salary (including
shift work allowance) and the new monthly salary (including any (shift work) allowance).
- The duration of the cutback regulations is derived from the number of complete
uninterrupted years of shift work, on the understanding that each complete year of shift work
entitles the employee to one month of cutback payment. Employees aged 45 and older areentitled for each complete year of shift work to two months of cutback payment.
- In the first half of the cutback arrangement the employee receives 75% of the cutback
amount, and in the second half 25%. An employee who ceases shift work voluntarily and isless than 55 years old receives half of the aforementioned successive percentages.
- An employee aged 55 and older, with a minimum of 10 but less than 20 uninterrupted yearsof shift work, receives under the salary cutback regulations a minimum of 25% of the
cutback amount up to the date of his/her retirement.
- An employee aged 55 or older, with a minimum of 20 but less than 30 uninterrupted yearsof shift work, receives a minimum of 50% of the aforementioned amount up to the date of
his/her retirement.
- An employee aged 55 or older, with a minimum of 30 uninterrupted years of shift work,
receives 75% of the aforementioned amount up to the date of his/her retirement.
2. If an employee has ceased shift work for medical reasons and is granted a payment under theWork and Income According to Labor Capacity Act (WIA), he/she will be covered by thearrangements contained in Appendix A of this Collective Employment Agreement.
The employee will also be covered by the salary cutback regulations, provided that this does
not result in a decrease in the disablement percentage.
An employee who has ceased shift work for medical reasons and has been reassigned to a
daytime work roster without limitations is eligible, following a complete reassessment of thedegree of unfitness for work, for the salary cutback provisions if and insofar as they have notbeen granted on other grounds.
Cutback takes place up to the monthly salary that applies under the provisions of the various
clauses of Appendix A, of this CEA.
3. An employee who ceases shift work involuntarily and receives for the shift work a monthly
salary equal to or higher than that of a comparable full-time non-shift worker is entitled to beplaced in a duty roster with a monthly salary at least corresponding to that of a comparable
employee in a full-time day duty roster.
The above applies accordingly to a shift worker aged 55 or older who ceases shift work
voluntarily.
4. Payments made under the salary cutback regulations cease when an employee is transferred
to a (shift) work roster which entitles the employee to a monthly salary (including (shift work)
allowance) that is equal to or higher than the monthly salary (including (shift work) allowance)
for the transition.

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The cutback regulations cease when the employee's contract of employment is terminated; if
the employee re-enters the employer's service, previous years of shift work do not count inrespect of the salary cutback regulations.
5. The cutback amount will be raised accordingly when there are collective improvements insalary.
6. The following transitional arrangement applies to rights built up by employees under the shift
work allowance guarantee regulations valid up to 1 January 1989:
a. All payments under the present shift work allowance guarantee regulations will be
guaranteed at the level reached on the day prior to that on which the new shift work structure
is introduced.
b. All years of shift work prior to the date of introduction of the new shift work remuneration
regulations count in the application of the new salary cutback regulations, at least in so far
as these years were not covered by the present shift work allowance guarantee regulations.
7. If an employee who comes under the shift work allowance guarantee regulations of before 1
January 1989 does shift work once again, his/her shift work allowance is reduced to theguaranteed level that applied before 1 January 1989 when he/she leaves the shift.

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APPENDIX D
PHILIPS EMPLOYMENT SCHEME / LABOR MARKET POLICYThe Employment Scheme will be continued for the term of the CEA.
The employer will endeavor to achieve a level of work experience places representing 1.5% of theworkforce. In this connection, good support is of vital importance to increase the participants’market value.
As well as a work experience place, each participant will as far as possible be given the opportunity
to take part in a training activity, and support will be provided in obtaining a regular job.
With regard to the practical implementation of the Employment Scheme, the aim will be to cater as
much as possible to those groups in society which form part of what can be called the “hard core”
of unemployment. Target groups will be determined in consultation with the trade union
organizations.
The Employment Scheme will focus in particular on:- youth unemployment;- vocational qualifications obtained through education & work programmers (BBL);- participation of people with a work handicap (in particular those entitled to “Wajong”).
At least 20 long-term unemployed people per year who meet the target group criterion under
the Participation Act will take part in the Philips Employment Scheme. During the term of the
CEA an action plan will be drawn up to ensure that the proportion of this target group in thePhilips Employment Scheme can be further increased.
As part of the Employment Scheme the Company is prepared to contribute to employment projectsof third parties which have comparable objectives in the form of expertise, experience, resourcesand operational support. The trade union organizations will be given the opportunity to put forward
possible projects.
The trade union organizations will be given a progress report on the Employment Scheme twice a
year.
Together with Philips, the trade union organizations will seek to give direction, based on an overall
vision, to activities which, taking account of relevant social trends, are aimed at strengthening theposition of specific groups of employees. Subjects to be discussed will include, but are not limited
to, activities related to the Philips Employment Scheme, Jetnet, Wajong and youth unemployment.

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1 January 2018 through 31 October 2019

APPENDIX ERESILIENCE@WORKAn investment fund of 7.5 million euros has been agreed during the term of the Central Social Plan
(2014-2018) for a program called Resilience@work (Veerkracht@werk), which is aimed atproviding greater job security by 2018, both internally and externally. This is to be achieved byensuring that employees:-

have and retain an understanding of their labor market position
know what products and services they can use, andhave taken concrete steps to remain suitable for the changing requirements of the job/work
environment and thereby also to strengthen their position on the internal and external labormarket.
On the basis of their joint responsibility, the parties are of the opinion, also because ofdevelopments and experiences at Philips and on the external labor market, that extra
investments are needed to promote job security for employees and to realize the desired
climate that this entails. Rapid changes are taking place and call for a flexible, resilient and proactive mindset.
The parties are working together to achieve this goal in an executive committee of the
Veerkracht@werk fund, which also has the following tasks:-

To develop and implement a process and associated resources designed to create an up-todate CV and/or e-portfolio for every employee
To analyze the possibilities and difficulties of working from home. To make proposals for
optimizing the use of this possibility.

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1 January 2018 through 31 October 2019

APPENDIX FDIFFERENT AND SUPPLEMENTARY PROVISIONS APPLICABLE TO EMPLOYEES IN THE
UNIFORM SECTION OF THE COMPANY SECURITY DEPARTMENT
Article 1
Definitions
In this Appendix the following terms are understood to have the following meaning:
The employer:

The organizations:each of the parties previously mentioned under 1. to 1.5 of theCollective
Employment Agreement
the parties previously mentioned under 2. to 5 of the Collective
Employment Agreement

Employee:

all those persons in the service of the employer who are part of theemployer’s uniformed Company Security Department

Department:

the employer’s Company Security Department

Article 2
General1. The following articles of the CEA are not applicable to the employee as referred to in article 1of this Appendix:
a. Article 7.5;
b. Article 5.7, I and II;
2. The non-applicable CEA articles referred to above in clause 1 are superseded by the following
articles, which supplement the CEA for the employee as referred to in article 1.
Article 3
Remuneration for shift work rosters
1. The employee who works shifts in accordance with a set duty roster, or who works inaccordance with a daytime duty roster with non-structured irregularity, receives a shift work
allowance on top of his/her monthly salary. This allowance is paid from the time when theemployee starts to work in accordance with this duty roster and so long as he/she continues towork in it.
2. The level of the shift work allowance depends on the type of shift that the employee works andhas been defined in the duty roster.

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1 January 2018 through 31 October 2019

3. The shift work allowance is:
17%:
17%:
22.5%:

33.5%:

for daytime duty rosters with non-structured irregularity, in which the average
working time per week is 38 hours and the operating time at least 40 hours per week;
for all two-crew shift rosters, in which the average working time is 38 hours and theoperating time at least 80 hours per week;
for the three-crew shift rosters, with inspection shifts at the weekend, in which theaverage weekly working time is 38 hours and the operating time at least 120 hours
per week;
for the continuous shift rosters, in which the average weekly working time is 38 hours
and the operating time 168 hours per week.

4. Payment of the shift work allowance is based on the sum total of the elements of the employee’s
remuneration, though based at least on a monthly salary of € 2,071. The latter sum will be
adjusted by the percentage of the collective salary scale adjustments, as referred to in article
5.4.
5. The employer's salary cutback regulations are contained in Appendix C to the CEA.
6. For an employee who prior to 1 January 1972 received a salary based on the all-in salarysystem of the Company Security Department, the employer’s existing provisions regarding
partially incapacitated employees, as agreed with the employee organization Unie van
Beveiligings- en Bewakingspersoneel (formerly NBOB) are applicable.
Article 4
Assignment of the employee to a pay grade
1. A grading system is used for the uniformed department of the Company Security Department.
The salary scales for the Company Security Department are the same as the salary scales up
to and including job grade 45. Depending on the employee’s grade, he/she is assigned to a pay
grade:
a. security guard 2nd class:
pay grade 01 - equal to job grade 20
b. security guard 1st class:
pay grade 07 - equal to job grade 25
c. head security guard:
pay grade 08 - equal to job grade 30
d. assistant group leader:
pay grade 03 - equal to job grade 35
e. group leader:
pay grade 04 - equal to job grade 40
2. The employer has adopted more detailed internal rules regarding the conditions which an
employee has to meet in order to be promoted to a higher grade.
3. For an employee with the rank of security guard 1st class who is at present in pay grade 02,
the employer will fully maintain this pay grade and the associated salary scale.
However, it is no longer possible to be assigned to this pay grade from another pay grade.
Article 5
Holidays for employees who work shifts
1. The employer adopts more detailed internal rules regarding the taking of holidays.
2. An employee who works shifts works as normal on collective days off.
If the importance of the duty roster so requires, the employer may oblige an employee whodoes not work shifts likewise to work on collective days off.

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1 January 2018 through 31 October 2019

3. An employee who works continuous shifts receives, on top of his/her normal number ofholidays, two extra free periods of duty in the holiday year.
More detailed internal rules are drawn up by the employer with regard to the taking of thesedays.
4. For the implementation of the provisions of article 7.4 clause 3 of the CEA, an employee whoworks continuous shifts will be given 6 extra free periods of duty for possibly having to work on
the public holidays referred to in article 7.4 clause 1 of the CEA.
Insofar as an employee, as a result of the thinning-out of the workforce in the duty roster, isfree on a day for which compensation is already made in accordance with what is stated in thefirst paragraph of this clause, an extra period of duty will be deducted from the number of extra
free periods of duty that the employee is given under this clause.
Insofar as the employee, in accordance with the normal duty roster, is free on the said public
holidays, there will be no correction of the number of extra free periods of duty.
5. The implementation of these provisions will be arranged by the employer in consultation with
the Works Council.
Article 6
Term of validity
The term of validity of this Appendix is equal to the term stated in article 1.2 of the CEA (1January 2018 through 31 October 2019).

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1 January 2018 through 31 October 2019

APPENDIX GSALARY SCALESMonthly salary scale for job grades 10 to 45 as of 1 September 2018
(including the collective increase in salary of 3% on 1 September 2018)
Scale position

Reference salary

115
110
105
100
95
90
85
80
75
70
65
60

10
2.393
2.289
2.185
2.081
1.977
1.873
1.769
1.665
1.561
1.457
1.353
1.249

15
2.425
2.320
2.214
2.109
2.004
1.898
1.793
1.687
1.582
1.476
1.371
1.265

20
2.520
2.410
2.301
2.191
2.081
1.972
1.862
1.753
1.643
1.534
1.424
1.315

25
2.657
2.541
2.426
2.310
2.195
2.079
1.964
1.848
1.733
1.617
1.502
1.386

27
2.806
2.684
2.562
2.440
2.318
2.196
2.074
1.952
1.830
1.708
1.586
1.464

30
2.961
2.833
2.704
2.575
2.446
2.318
2.189
2.060
1.931
1.803
1.674
1.545

35
3.291
3.148
3.005
2.862
2.719
2.576
2.433
2.290
2.147
2.003
1.860
1.717

37
3.524
3.370
3.217
3.064
2.911
2.758
2.604
2.451
2.298
2.145
1.992
1.838

Monthly salary scale for job grades 50 and above as of 1 September 2018
(including the collective increase in salary of 3% on 1 September 2018)
Scale position

Reference salary

130
125
120
115
110
105
100
95
90
85
80
75
70
65
60

50
5.418
5.210
5.002
4.793
4.585
4.376
4.168
3.960
3.751
3.543
3.334
3.126
2.918
2.709
2.501

60
6.802
6.540
6.278
6.017
5.755
5.494
5.232
4.970
4.709
4.447
4.186
3.924
3.662
3.401
3.139

70
8.671
8.338
8.004
7.671
7.337
7.004
6.670
6.337
6.003
5.670
5.336
5.003
4.669
4.336
4.002

80
10.310
9.914
9.517
9.121
8.724
8.328
7.931
7.534
7.138
6.741
6.345
5.948
5.552
5.155
4.759

90
12.37911.903
11.42610.95010.474
9.998
9.522
9.046
8.570
8.094
7.618
7.142
6.665
6.189
5.713

40
3.851
3.684
3.516
3.349
3.182
3.014
2.847
2.679
2.512
2.344
2.177
2.009

45
4.355
4.166
3.976
3.787
3.598
3.408
3.219
3.030
2.840
2.651
2.462
2.272

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1 January 2018 through 31 October 2019

Monthly salary scale for job grades 10 to 45 as of 1 October 2019
(including the collective increase in salary of 2% on 1 October 2019)

Scale position

Reference salary

115
110
105
100
95
90
85
80
75
70
65
60

10
2.441
2.335
2.229
2.123
2.017
1.911
1.805
1.698
1.592
1.486
1.380
1.274

15
2.475
2.367
2.260
2.152
2.044
1.937
1.829
1.722
1.614
1.506
1.399
1.291

20
2.570
2.459
2.347
2.235
2.123
2.012
1.900
1.788
1.676
1.565
1.453
1.341

25
2.711
2.593
2.475
2.357
2.239
2.121
2.003
1.886
1.768
1.650
1.532
1.414

27
2.862
2.738
2.613
2.489
2.365
2.240
2.116
1.991
1.867
1.742
1.618
1.493

30
3.021
2.890
2.758
2.627
2.496
2.364
2.233
2.102
1.970
1.839
1.708
1.576

35
3.358
3.212
3.066
2.920
2.774
2.628
2.482
2.336
2.190
2.044
1.898
1.752

Monthly salary scale for job grades 50 and above as of 1 October 2019
(including the collective increase in salary of 2% on 1 October 2019)
Scale position

Reference salary

130
125
120
115
110
105
100
95
90
85
80
75
70
65
60

50
5.528
5.315
5.102
4.890
4.677
4.465
4.252
4.039
3.827
3.614
3.402
3.189
2.976
2.764
2.551

60
6.938
6.671
6.404
6.138
5.871
5.604
5.337
5.070
4.803
4.536
4.270
4.003
3.736
3.469
3.202

70
8.845
8.505
8.165
7.825
7.484
7.144
6.804
6.464
6.124
5.783
5.443
5.103
4.763
4.423
4.082

80
10.517
10.113
9.708
9.304
8.899
8.495
8.090
7.686
7.281
6.877
6.472
6.068
5.663
5.259
4.854

90
12.62712.14111.656
11.17010.68410.199
9.713
9.227
8.742
8.256
7.770
7.285
6.799
6.313
5.828

37
3.595
3.439
3.282
3.126
2.970
2.813
2.657
2.501
2.345
2.188
2.032
1.876

40
3.928
3.758
3.587
3.416
3.245
3.074
2.904
2.733
2.562
2.391
2.220
2.050

45
4.442
4.249
4.056
3.863
3.670
3.477
3.284
3.090
2.897
2.704
2.511
2.318

CEA Philips

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1 January 2018 through 31 October 2019

APPENDIX HOTHER AGREEMENTS

During the course of this collective employment agreement, the following agreements
apply:
1. Informal carea. Facilitating an informal care coach. The informal care coach focuses on improving theresilience of the employee. That happens in group training sessions for 6 to 12 participants.
The training course is provided in 2 separate four-hour sessions and will be supported
through a website for three months. By means of homework assignments, people work on
personal solutions that are feasible for the participant. The training is given in-company;b. Providing good information about Informal Care, with a central site containing all relevant
information about internal policies, about the Informal Care Coach, about external sourcesof information and a “helpdesk” where bottlenecks can be reported. The information has
been set up in such a way that all role assignments are clear and guiding for employees /line managers / colleagues. In this text, the emphasis is on the cultural aspect: “give eachother space / find solutions together / help each other” instead of listing all rights andresponsibilities (however, provide tips and examples);c. If an employee reduces their working hours percentage due to informal care duties, thispercentage will be increased to its original percentage again within a period of one year if
desired. That year can be extended to one more year in consultation with the employer;
d. Philips will look into if and how the role of an informal care broker can be put into practice.
2. Sustainable employability
Each employee will have the opportunity to get a scan once per year to gain more insight withregard to their personal employability. The scan consists of a digital questionnaire, a report anda counselling interview with an expert coach/advisor. At any time in the year, the employee canmake a choice between getting a job market/career scan (including the APQ), financial scan ora vitality scan. The results and progress as well as the costs of these tools will be discussed in
the regular meetings with the unions.
Furthermore, the following studies and pilot will be developed in more detail:1. Study on career change
A project group with members of Philips Lighting, the trade unions and the Central Works
Council will continue exploring the subject of career change in all of its aspects within a periodof six months after signing the collective employment agreement.
2. Study on shift work
In Drachten, a study has been launched on improving the situation of shift workers. The
achieved results and still unanswered questions will be discussed in a meeting with tradeunions. After this meeting, it will be decided whether further research is needed and how tradeunions will be included in the follow-up.
3. Conflict management
In Best, a project has been launched with the purpose of providing easily accessible and completely
neutral confidential support for all employees in mapping their healthcare issues or dilemmas.
Together with the employee, we try to find the most suitable solution route in which the autonomyof the employee remains the primary focus. The unions will be updated on the progress of this pilot
in the regular meeting