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New Legislation Announced for Supply of Labour
As of 1 July 2012 a new Act came into effect (Wet registratieplicht intermediairs) in the Netherlands. This new law is of great importance to non-Dutch temporary employment and secondment agencies and also to foreign companies supplying one or more workers on an ad hoc basis in the Netherlands. These (non-Dutch resident) companies have to register with the Dutch Chamber of Commerce. Failure to register will result in high fines. Both the company supplying workers and the hirers risk a fine. Taxand Netherlands investigates how the new legislation coming into effect is likely to affect businesses in the Netherlands that rely on foreign workers.
Following implementation on 1 July 2012 companies who supply workers on a commercial basis must register with the Dutch Chamber of Commerce. Companies who supply workers on an ad hoc non-commercial basis must inform the Dutch Chamber of Commerce. Companies that supply workers within their own group are excluded from the obligation to register.
Failure to register will result in high fines. Both the company supplying workers and the hirers risk a fine of a maximum of EUR76,000 for the first, EUR152,000 for the second and EUR228,000 for the third violation of the registration obligation per worker. In practice, the fines are not expected to amount to more than EUR12,000 for the first, EUR24,000 for the second and EUR36,000 for the third violation.
Examples of companies that are obliged to register:
- an employment agency established in the UK that supplies workers to companies in the Netherlands
- a consultancy firm who temporally places one of its employees with a client to replace a pregnant employee of the client
Hirers may check whether the company from which they are hiring workers has been correctly registered with the Chamber of Commerce.
The expectation is that hirers will not wish to hire workers from non-registered companies because of the high fines. This means that all companies (foreign and domestic) supplying one or more workers to the Netherlands must register with the Dutch Chamber of Commerce. Please note that the registration with the Chamber of Commerce may trigger investigations by and discussions with the Tax Authority, Pension funds and Collective Labor Parties, Labor Inspectorate, Immigrations Services, etc. The description in the registration is therefore vital as the wording thereof may or may not trigger such investigations or discussions.