Labor audit results published online

IMPACT – MEDIUM

What is the change? The Dutch Labour Inspectorate has begun publishing results of employer audits on its website.

What does the change mean? The names and addresses of companies subjected to audits will be published along with the dates and legal grounds for the audits and whether the companies were found to have violated laws on employing foreigners, paying wages and other labor regulations.

• Implementation time frame: The results of all inspections taking place after Jan. 1 will be published.
• Visas/permits affected: Work permits and residence permits.
• Who is affected: All employers.   
• Business impact: The public list is intended to increase transparency and may also encourage companies to be proactive on compliance measures.
• Next steps: Employers should review their compliance policies and make sure they are prepared for an audit.

Background: The Labour Inspectorate monitors and audits companies for violations of the Aliens Employment Act, the Minimum Wage and Minimum Holiday Allowance Act, and the Placement of Personnel by Intermediaries Act.

The Labour Inspectorate will publish results of an audit within 30 days after the employer is notified of the decision to publish. If the employer objects and asks a court for an interim measure within 10 days of the notification, the Labour Inspectorate will postpone publication until the court rules on the request. Published results will remain on the website for three years.

Results of audits are published regardless of whether the employer is found to be in violation of labor laws. Of the 61 most recent inspections currently listed on the website, none of the audited companies were found to have committed an offense.

BAL Analysis: The publishing of audit results will likely make companies more vigilant about compliance with labor laws. The list also provides transparency into the Labour Inspectorate’s audit practices, the frequency of audits, which types of companies are being audited, and which violations are being investigated.

This alert has been provided by the BAL Global Practice group and our network provider located in the Netherlands. For additional information, please contact your BAL attorney.

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