• EU Service Providers Now Subject to Dutch Labor Laws
  • August 3, 2016
  • Law Firm: Fragomen Del Rey Bernsen Loewy LLP - New York Office
  • Employers based in the European Union who send workers to the Netherlands to provide services, transfer workers within a multinational company or who send workers through an employment agency must now comply with Dutch labor laws, according to a new law. The purpose of the law is to prevent companies from setting up fake service provision agreements to avoid Dutch laws.

    The new law requires the EU sending employer to comply with Dutch labor laws regulating the following issues:
    • Maximum working hours;
    • Minimum holidays;
    • Minimum working age;
    • Minimum wages and allowances;
    • Health and safety rules;
    • Maternity leave and job protection for new mothers; and
    • General non-discrimination rules.
    New Rules for EU Service Providers

    To comply with the new law, the foreign service provider must abide by the following new rules:
    • Make documentation available at the Dutch workplace to evidence compliance with the above Dutch labor laws in case of inspection;
    • Appoint an internal contact person at the Dutch workplace who the labor authorities can contact in case of questions; and
    • Notify the Dutch labor authorities if the employer/service provider sends a worker to provide services, transfers a worker from a multinational company or hires a worker through an agency.
    The first two requirements are effective immediately, and the last requirement will be effective once an online notification system becomes available.

    Background

    When EU service providers send employees to the Netherlands, the laws of the sending country remain applicable. Now, Dutch laws on the above issues will apply instead if they are more strict.

    What This Means for Employers and Foreign Nationals

    Affected EU employers should contact their immigration professional to ensure compliance with the new rules.