Duty to report international postings
Do you meet the relevant regulatory requirements?
The duty to report international postings came into effect on 1 March 2020. This duty will affect both Dutch and non-Dutch companies. The new rules will make it easier for the Dutch authorities to check whether you apply the rules for hiring international workers properly. Do not delay; check whether you meet the relevant regulatory requirements now.
The reporting duty under the Dutch Posted Workers in the European Union (Working Conditions) Act applies to:
- Have you assigned non-Dutch workers to a project in the Netherlands?
- Do you outsource workers who do not live in the Netherlands to a Dutch client?
- Do you post workers to a Dutch parent company, subsidiary or fellow subsidiary?
- Are you a self-employed person established outside the Netherlands who carries out projects in the Netherlands?
- Do you have a non-Dutch subcontractor that uses foreign workers in the Netherlands?
- Do you insource workers from a non-Dutch staffing agency?
- Do you have staff from a non-Dutch parent company, subsidiary or fellow subsidiary working for you?
- Do you work with self-employed persons established outside the Netherlands to work for you in the Netherlands?
If the answer to any of these questions is ‘yes’, you need to take action. If you act as the ‘supplier’ of the workers, you are expected to report their postings; if you act as the client / insourcer, you are expected to verify and deal with the report. What are the steps in the process?
Step 1: Reporting international postings
Starting from 1 March 2020, all employees (and some self-employed persons) who temporarily come to the Netherlands to work must be reported to the competent authorities before they take up their duties, even if they are not liable to tax in the Netherlands. The requirement usually applies to short projects as well. The online report requires you to provide many details, including:
- Who will serve as a contact person for the authorities.
- What address the person works at.
- How long you expect the project to take.
- Who will pay the person’s salary.
- Whether you have a statement showing in which country social security contributions are due (A1 statement).
Any changes must be reported (e.g. if an extra worker is assigned to the project). Failure to report or provide incorrect details in the report can result in a fine of no less than € 12,000 per worker.
Step 2: Verifying the report
If you have engaged a company that has assigned non-Dutch workers to a project it is carrying out for you or if you insource workers from a non-Dutch staffing agency, you are required to verify whether this company has reported these workers to the authorities and whether its report is correct. The report is filed online and sent to you automatically in your capacity as the client. As the client, you are expected to either approve or reject the report. If you reject the report, the application must be amended. If you do not verify a report, you run the risk of a massive fine.
No report = No work
It is crucial that workers are reported promptly because, after 1 March, they will not be permitted to take up their duties until after the reporting process has been completed. Workers will still be permitted to continue activities they had already taken up on 1 March. Please remember that your client will need time to review your report and that you may need to make some adjustments. So, start early to avoid having to postpone your project because the reporting process has not yet been completed. Reports can be entered with effect from 1 February 2020.
Check whether you meet the relevant regulatory requirements
Your reports will be available to the Dutch Tax and Customs Administration and the Inspectorate SZW (Labour Inspectorate). These two bodies will actively check the database. That is why you should check your services (or the services of the company whose workers you insource):
- In what country are you liable to pay tax?
- Are all your workers paid the minimum wage?
- Do you comply with the provisions of the Dutch Working Hours Act?
- Do you have a statement showing in which country social security contributions are due (A1 statement) for all your workers?
- If you work with agency staff: is the agency recognised under the Dutch Placement of Personnel by Intermediaries Act?
- Do your records meet the Dutch requirements?
You are expected to keep a copy of the report in the workplace, in addition to copies of the workers’ employment contracts, records of their hours worked, their payslips, proof of payment of their wages and the statements showing in which country social security contributions are due.
How to avoid a fine
Contact accon■avm now to have us check whether you meet all the relevant requirements and avoid a massive fine. And file your report promptly. Please do not hesitate to send an email to firstname.lastname@example.org if you have any questions or require additional information. We are here to help.Need advice on this subject?
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