PostNL avoid a fine of over 20 million euros after acquittal in Belgium

The court in Antwerp acquitted two Belgian divisions of PostNL in a case about alleged labor abuses. The package delivery company will now avoid fines worth around 24.4 million euros. "It is the ruling the company had expected," PostNL said.

Prosecutors suspected the company of effectively being the employer of staff hired through subcontracted firms, which would be considered a "prohibited provision." However, the court ruled that the subcontractors had sufficient authority over their employees, making them the actual employers.

A number of the subcontractors were issued fines, with a portion of them being conditionally suspended. Work permits for staff were also missing. It is not clear how high the fines are. These penalties are the result from "social law violations" that the inspectorate had established at these companies. An example of this is not completing a so-called DIMONA report, which Belgian companies are obligated to file when somebody joins or leaves their employment.

"Since 2021, the lawsuit against PostNL Belgium has had a significant impact on both individual employees and the organization as a whole, due to the nature of the allegations and the ongoing uncertainty," the postal company responded. "PostNL has always indicated that it complies with laws and regulations and thus maintained confidence in its business operations and collaborations with partners, customers and entrepreneurs."

In connection with the Belgian authorities' investigation into PostNL abuses in that country, their depots were raided in 2021 and 2022. The CEO at the time, Rudy van Rillaer, was held in custody for a short while after. The Belgian Public Prosecution Service asked the court to acquit him and another director, and PostNL Holding, the parent company. The court went along with this request on Friday.

The court in Antwerp also acquitted logistics company GLS in March in a similar case. Subcontractors were also fined in that case.