Cross-border employees: three issues you need to address

1 June 2023

Your company is based in the Netherlands. Your employees do not only work in the Netherlands but also in other countries within the European Union and/or worldwide. You must have arranged at least three issues for these international employees. We will list them for you.

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Written by:
Clea Cremers Global mobility specialist | Tax
Border in Belgium where you need to address three issues

The obligation to report an employee (notification obligation)

Worldwide, you have to assess for each country whether an obligation to report your employees (notification obligation) exists. By making the report, you as the supplier of a service, declare that you, with your company and one or more employees, will be carrying out work in the other country. The report must often be made before the employee starts their activities in that country. On the basis of European Directives, in any case within the European Union suppliers of services that employ employees in another Member State must fulfil a reporting obligation. Member States have transposed these directives into their national legislation and regulations. For each country general rules and sector-specific rules governing this reporting obligation are in force. In many neighbouring countries of the Netherlands (e.g. Belgium) a (mandatory) reporting system has been set up. Very strict rules are attached to this European reporting obligation. If you fail to report on time, or if you report or incompletely or inaccurately, you may be subject to a high penalty.

'Hard core' minimum terms of employment and working conditions

It is possible that the law of the other country impacts, or will impact, your employment relationship with international employees. The national legislation and regulations of a country and/or a collective bargaining agreement may require, among other things, a mandatory minimum level terms of employment and working conditions. These include, for example, terms and conditions of employment in the areas of remuneration, work and rest hours, the minimum number of days off and working conditions. These mandatory terms and conditions of employment are also referred to as the 'hard core' and may have an impact irrespective of the law governing your employment contract. In various countries the 'hard core' is strictly controlled and enforced. If the correct papers are missing or if you do not meet these terms and conditions of employment, you may be subject to a high penalty.

A1/Certificate of Coverage

The A1/Certificate of Coverage is a European form. An employee who works for you outside the Netherlands, can prove with this form that they are for example covered by social insurance in the Netherlands. All Member States of the European Union use this form. In addition, on the basis of legislation and European case law, the Member States are obliged to acknowledge Certificate of Coverages issued by the other Member States. Of course, this may be different if the statement is misused. Does your employee work in another country? Then it is desirable (and depending on the country required by law) to have a valid A1 /Certificate of Coverage. Some countries impose a tax penalty for not having a valid certificate.

Find out more?

ABAB Global Mobility Services has in-house expertise for legal and tax support for employers and expats. Please contact Clea Cremers, global mobility specialist - tax, by phone +31 (0)77-3217715 or send Clea an e-mail.

Would you like more information about global mobility services? Our specialist will gladly assist you!

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Portretfoto van Clea Cremers
Global mobility specialist | Tax