Beginning March 1, 2020, employers in countries other than the Netherlands in the European Economic Area (EEA), and Switzerland, that want their employees to work temporarily in the Netherlands will be required to provide advance notice via a Dutch Ministry of Social Affairs and Employment online notification desk. Self-employed persons who want to work in the Netherlands on a temporary basis will also have to file a notification.
Posted Workers in the European Union (Working Conditions) Act (WagwEU)
This notification requirement is prescribed under the Posted Workers in the European Union (Working Conditions) Act (WagwEU), which aims to protect temporary foreign employees who work for a foreign employer, and to combat unfair competition based on terms of employment. Such employees are entitled to key employment terms and benefits under Dutch employment law, such as a minimum wage, minimum rest periods and holidays, safe working conditions and equal treatment.
To whom will this notification requirement apply?
The new notification requirement will apply to the following companies and persons in the EEA (all EU Member States and Norway, Liechtenstein and Iceland) as well as Switzerland:
- self-employed persons and employers that come to the Netherlands with their own staff;
- multinationals that provide employees from their own companies to the Netherlands; and
- agencies that send temporary employees to work in the Netherlands.
The contracting parties/clients of these companies and persons will be required to verify whether this notification has been made, and if so, whether it is correct. As soon as the contracting party or the client has filed a notification, it will receive a message that can be checked online for any inaccuracies.
Who will obtain the data?
The Social Affairs and Employment Inspectorate (Inspectie SZW), Social Insurance Bank (Sociale Verzekeringsbank) and the Dutch Tax and Customs Administration will obtain copies of the data entered.
There is no grace period for this notification requirement. Enforcement will start when the requirement takes effect, i.e., on March 1, 2020. Failure to comply with the notice requirement may subject the foreign employer, foreign self-employed person and the relevant contracting party to a fine.
Avoid fines – use the checklist
Affected employers and individuals can help avoid fines by using the agency-provided checklist. Foreign employers can click here for a checklist and self-employed foreign persons here (checklist in Dutch language only).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.