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IMPACT – MEDIUM
What is the change? The Netherlands has delayed the launch of a notification system for posted workers. The electronic platform was initially expected to launch in early January, but authorities have postponed it until January 2019.
What does the change mean? Currently, there is no alternative notification method and, therefore, no duty for employers to notify Dutch authorities under the EU Enforcement Directive on Posted Workers. Separate notification obligations may apply, however, to workers providing cross-border services or for intra-corporate transferees under the EU’s Intra-Corporate Transferees Directive.
Background: The Netherlands had planned to begin enforcing the EU posted worker directive’s notification requirements this year, but the electronic platform that was going to be used for the process was not ready. Authorities are now planning on launching the site in January 2019. Once it is implemented, employers posting workers to the Netherlands will likely be required to provide detailed information, including employees’ names, expected duration of the work, work location, number of posted workers, the host company’s Chamber of Commerce registration number and the nature of the work. While the notification provisions of the EU posted worker directive have been put on hold, provisions of the directive related to document retention remain in effect. These provisions require companies to retain copies of employee passports, timesheets, proof of wage payments, employment agreements and proof of social security payment on-site in the Netherlands.
BAL Analysis: While employers posting workers to the Netherlands do not currently have notification obligations under the EU posted worker directive, other notification requirements may apply for cross-border workers or ICT permit holders. Employers should also note the posted worker directive’s document retention requirement remains in effect even though the notification system has been delayed.
BAL will continue to follow the Netherlands’ implementation of the posted worker directive and will provide clients with updated information when it becomes available.
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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