Administrative obligations for employers established abroad
The Act on the Employment Conditions of Workers Posted in the European Union (AWPEU) came into effect on the 18th of June 2016. Do you employ foreign employees who work for you in The Netherlands? Then this law applies to you.
This act allows the Dutch Inspection of Social Affairs and Employment (SA&E) to inspect whether foreign employers are in compliance with the most important employment laws in The Netherlands. What happens if you do not comply with the regulations? The Inspection may impose a fine.
In order to be inspected by the Inspection SA&E, you as a foreign employer have the following obligations:
- At the request of the Inspection SA&E you have the obligation to provide all requested data and information.
- As an employer established abroad you are required to retain paper or electronic documents at the workplace in The Netherlands. This relates to: pay slips, working hours overview, employment agreements, proof of payment of contributions to social security institutions, proof of identity of employees.
- You have to appoint a contact person as contact point for the Inspection SAE in The Netherlands.
In the future you will also have to report where, when and with which employees you will work in The Netherlands. This notification requirement has been temporarily suspended until the digital reporting system becomes available. The reporting system is expected to be available on the 1st of January 2018.
If you have employees working for you in The Netherlands, please follow the developments in relation to the AWPEU closely.