What are the main guidelines when hiring employees from a foreign company?

Hiring employees from a foreign company entails specific obligations regarding working hours and employment conditions. Below is a detailed discussion of the main guidelines and requirements for employers who want to deploy posted workers in the Netherlands.

Working Hours Act for Posted Workers The Working Hours Act (ATW) is a crucial part of Dutch legislation that regulates the working hours and rest periods of employees. For posted workers, it applies just as it does for Dutch employees. The main provisions are:

• Maximum Workweek: Posted workers may work an average of up to 48 hours per week, calculated over a period of 16 weeks. This means that an employee can work more than 48 hours in a busy week, as long as the average over 16 weeks does not exceed 48 hours per week.
• Daily Rest Time: Employees must have at least 11 consecutive hours of rest per 24-hour period. In certain situations, this rest time can be reduced to a minimum of 8 hours, but this may not happen more than once a week.
• Weekly Rest Time: Posted workers are entitled to at least 36 consecutive hours of rest per seven-day period. This rest time can be spread over two consecutive weeks, with a total rest time of at least 72 hours.
• Breaks: For a workday of more than 5.5 hours, an employee is entitled to a break of at least 30 minutes. This break can be divided into two breaks of 15 minutes each. For a workday of more than 10 hours, the break must be at least 45 minutes, which can be split into multiple breaks of at least 15 minutes each.

Employment Conditions for Posted Workers

• Legal Minimum Wage and Holiday Allowance: Posted workers in the Netherlands are entitled to the statutory minimum wage and holiday allowance. Employers must ensure that these employees receive at least the Dutch minimum wage, which is adjusted twice a year. Additionally, employees are entitled to a holiday allowance, usually 8% of the gross wage.
• Collective Labor Agreement (CAO): If a generally binding CAO applies, posted workers must be entitled to the core employment conditions from this CAO. This means that the main conditions from the CAO, such as wages, working hours, overtime, breaks, holidays, and health insurance, also apply to them. It is essential for employers to know and apply the relevant CAO provisions.
• Specific Employment Conditions:
  • Overtime: Posted workers are entitled to overtime pay as stipulated in the CAO or employment contract. This means that extra compensation must be given for hours worked beyond normal working hours.
  • Holidays and Leave: Employees are entitled to vacation days as determined by Dutch law and possibly the CAO. This means at least four times the number of hours worked per week in vacation days per year.
  • Safety and Health: Employers are required to provide a safe working environment. This includes complying with occupational health and safety legislation, providing protective equipment, and offering appropriate training and information.

Administrative Obligations

• Notification Duty and Control: The WagwEU obliges foreign employers to report posted workers to the Dutch Ministry of Social Affairs and Employment. This must be done before starting work in the Netherlands. Employers must provide detailed information, including the employee’s identity, duration of the posting, and place of employment. For more information, see the site of the governement.
• Labor Inspection: The Dutch Labor Inspection can conduct checks to verify whether the employment conditions and circumstances of posted workers comply with the legislation. Employers must have all relevant documents, such as employment contracts and pay slips, available for inspection.

Conclusion Compliance with the Dutch Working Hours Act and employment conditions is crucial for employers hiring posted workers. For more information about the Working Hours Act and Employment Conditions, please contact Syntro.nl