Providing healthy meals aimed at employees’ wellbeing and health can be regarded as part of an employer’s occupational health and safety (OHS) policy. That is what the Supreme Court ruled in its judgment of 24 May 2024. The Working Conditions Act requires employers to safeguard the safety and health of employees in relation to all work-related aspects. In its ruling, the Supreme Court emphasised that healthy food can reduce the risk of illness and support recovery. Providing meals can therefore be regarded as part of OHS policy, since it is aimed at promoting employees’ health.
ECLI:NL:HR:2024:745
Sprout-growing company Koppert Cress has for several years provided its employees with meals carefully composed by a dietitian, in line with the Health Council’s healthy-eating guideline and the Nutrition Centre’s “Wheel of Five”. This was done to promote employee health and reduce sickness absence.
The Tax Authority took the position that the healthy lunches could not be provided tax-free. Koppert Cress argued that it did not owe payroll tax on these lunches, since they fell under the targeted exemption for occupational health and safety provisions. This led to a lengthy legal dispute, ultimately settled by the Supreme Court.
What does this mean for employers?
The Supreme Court confirmed that providing healthy lunches to employees, as part of OHS policy, falls under the targeted payroll-tax exemption for occupational health and safety provisions. For employers, this is a meaningful tax incentive to invest in employee health and wellbeing. By offering healthy food, employers can not only contribute to their employees’ health, but also benefit from tax advantages and potentially lower costs through reduced sickness absence.
OHS policy must be aimed at improving working conditions and employee wellbeing. It does not need to precisely match the minimum requirements of the Working Conditions Act.
Do you have questions about your organisation’s OHS policy? Please feel free to contact our employment lawyers.
