THE NETHERLANDS

THE NETHERLANDS

Terms of employment posted workers in EU Act – important for foreign companies working in the Netherlands
Regarding The Netherlands Ministry of Social Affairs and Employment information about employment posted workers CONSOLTA share the newest information about it with your business.
“Employers from other EU countries who temporally come to the Netherlands with personnel to perform a job (posting) are subject to the European Union Act. There are three categories of posting:
  1. Posting based on a contract between the service provider and the service recipient, the service provider not being temporary work agency.
  2. Posting with multinational groups. Posting can also take place by seconding an employee on of an branch of a group in another member state to a branch of the same group in the Netherlands.
  3. Temporary agency work. Making temporary agency workers available in the Netherlands, while the temporary employment agency has its registered office in another member state.

Employers are obliged to assign certain minimum terms of employment to the personnel that comes to the Netherlands to work temporally. The so-called hard core of the terms of employment always consists of the following Dutch labour laws: the Minimum Wage and Minimum Holiday Allowance act, the Working Hours Act, the Working Conditions Act, the Placement of Personnel by Intermediaries and the Equal Treatment Act.

It is also important that when foreign employer gets to work in a sector in which a universally binding collective agreement applies, the hard core of the terms of employment from this collective agreement also apply. The posted workers are entitled to the provisions of the universally binding collective agreement which deals with:

  • Maximum working hours and minimum rest hours;
  • The minimum number of days holiday, during which the obligation of the employer exists to pay a wage, and extra holiday allowances;
  • Minimum wage;
  • Conditions for making employees available;
  • Health, security and hygiene at work;
  • Protecting measures;
  • Equal treatment of men and women, as well as other provisions regarding non – discrimination.

The WagwEU includes several measures to ensure that the hard core of the terms of employment can be enforced more adequately. There are a number of administrative statutory obligations for companies who are going to perform temporary work in the Netherlands. It involves four aspects:

  1. The obligation to provide information (to provide all information to the Inspectorate SZW (Social Affairs and Employment) which is required to enforce the WagwEU).
  2. The obligation to have certain documents as payslips and summaries of working hours available at the workplace (or have them digitally available at once).
  3. The obligation to appoint a contact person who functions as a point of contract and who can be contacted with Inspectorate SZW.
  4. The duty to report: foreign service providers must report in advance about where and when and with which employees work will be performed in the Netherlands.

The failure to comply with the first three obligations will be regarded as a violation of as from 18 June 2016 and may therefore be punished with an administrative fine. Unfortunately, this system will be more effective after digital system will be prepared, but it does not mean to have a number document available at work place (whether or not digital)”.