Entrepreneurs have to deal with 136 different definitions and thresholds which determine whether or not they have to comply with certain laws, a government body looking into corporate red tape has found.

Most of the thresholds are used to determine the size of a company but are complex, contradictory and often without logic, the research by red tape watchdog Actal found.

In particular, the plethora of definitions has an impact on smaller firms, the Volkskrant says.

Works council

For example, companies must have a works council if they have at least 50 members of staff. But there are at least eight ways of calculating this, ranging from hours worked to actual bodies, Actal said. The definition of turnover is even more complicated, Actal said.

The report also highlights the fact companies need to have a health and safety specialist in their team for every 25 workers, but that the limit for collective redundancy is 20 people. 

The winners in all this, Actal says in its report for economic affairs minister Henk Kamp, are the external advisors brought in to help firms find their way around the maze of regulations.

Actal calculates the extra red tape and costs associated with meeting the regulations cost industry some €2bn a year.