Reporting obligation for employment work in the Netherlands as of 1 March 2020
A new reporting obligation will soon be implemented in the Netherlands. Foreign employers and self-employed persons within the European Economic Area (EEA) and Switzerland with a temporary assignment to the Netherlands should report this as of 1 March 2020 via the Dutch online reporting system of the SVB (Dutch Social Security Bank). This new reporting obligation stems from the Posted Workers Directive (in Dutch: WagwEU). The WagwEU is intended to protect employees working conditions and to eliminate unfair competition. For example, the right to be paid a minimum wage, the right to a minimum number of paid vacation days and the right to health, safety and hygiene at work. Other administrative obligations are also included in this Act.
In light of the above, monitoring compliance with employment conditions in the Netherlands is required. This obligation was already included in the WagwEU but had not yet been introduced because as the online reporting system was not available.
The new reporting obligation will apply to foreign employers and self-employed persons from the European Economic Area (EEA) and Switzerland who are going to work temporarily in the Netherlands.
With regards to the Aliens Employment Act Implementation Decree you will no longer have to notify the UWV with respect to secondments of employees from third countries who normally work legally in another Member State; from 1 March 2020 this will now be reported via the SVB’s online reporting desk.
Obliged to notify are:
- Employers who come to the Netherlands with their own staff;
- Multinational companies that second employees to their own branch in the Netherlands;
- Temporary employment agencies that make temporary workers available in the Netherlands;
- Self-employed persons working in one of the designated sectors.
The transport sector has a few exceptions to the reporting rules. For example, the majority of transport is excluded from the notification obligation.
Failure to comply with this new obligation can result in a penalty for both the foreign employer/self-employed person and the customer/client (service recipient). The service recipient therefore also has obligations in this context. The SZW inspection will carry out the check on the notification obligation.
What does the obligation to report look like?
Work that starts on or after 1 March 2020 in the Netherlands must be reported via the online reporting system. Any ongoing employment work on that date does not have to be reported. The notification consists of information about the activities that will be performed, where these activities will take place and for which service recipient. It must also indicate how long the work will take and which employees will be seconded. If it is not yet known what the exact location of the work will be in the Netherlands, the report can be submitted with the available information. The details of the report can be supplemented at a later time.
Are you obliged to report or carry out business with a person obliged to notify?
The online reporting desk is open from 1 February 2020. There will then be further clarity on the precise content of the report. Prior to this we advise you to make an inventory of whether the notification obligation also applies to your organisation. If we can assist you in this, please feel free to contact one of our specialists.