IMPACT – Medium

What are the changes? On Jan. 1, 2014, a law covering foreign workers has been amended to revamp the work permit regime and put new requirements on companies that post foreign employees in the Netherlands.

What does the change mean? Highly-skilled migrants, intracompany transferees (ICTs) and EU Blue Card holders must hold work permits for five years before getting full access to the Dutch labor market.

  • Implementation timeframe: Jan. 1, 2014.
  • Visas/permits affected: All work permits.
  • Who is affected: All non-EU nationals assigned to the Netherlands.
  • Impact on processing times: None.
  • Business impact: The changes will add an administrative burden to employers who must renew work permits more frequently. Employers’ sponsorship duties are also extended from three years to five years.
  • Next steps: Employers should be aware of the longer waiting period and mark their calendars so they do not miss expiration and renewal dates for work permits.

Background: Amendments to the Dutch Employment of Foreigners Act will take effect on Jan. 1. The main change is that all work-permitted non-EU nationals must wait a consecutive five years before work permit restrictions are removed. Currently, they can get full access to the Dutch labor market after three consecutive years.

As under current law, work permits will be valid for three years. Employers must renew work permits to reach the five-year threshold. The new law will take effect without grandfathering pending applications. Therefore, any applications that are not decided by the end of the year will come under the new rules.

Other provisions in the amendments tighten the rules on regular work permits for foreign workers who do not fall under the categories of highly-skilled migrants, intracompany transferees or EU Blue Card holders. These provisions, which aim to curb the influx of unskilled labor, shorten the work permit duration to one year and impose annual labor market testing on employers.

BAL Analysis: Companies posting non-EU nationals in the Netherlands must renew work permits more frequently. Employers should also note that because assignees will be subject to work permits for an additional two years before restrictions are removed, employers are subject to sponsorship duties for a prolonged period.

This alert has been provided by the BAL Global Practice group and our network partner in the Netherlands. For additional information, please contact GlobalVisaGroup@bal.com.

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

Last week, the Dutch government introduced a new one-year temporary residence permit for individual investors and their families. The new permit, which came into effect on Oct. 1, also allows holders access to the Dutch labor market without having to obtain a work permit. In order to be eligible, applicants must invest at least 1.25 million euros in a Dutch company. The investment will:

  • Be investigated to determine its origins in order to counter the potential for money laundering.
  • Be deposited into either a Dutch bank account, or an account in an EU-based bank operating in the Netherlands under supervision of the Dutch National Bank (“De Nederlandsche Bank”).
  • Be investigated by the Agentschap NL to determine the economic value it brings to the country.

After the first year, holders of this permit will be eligible to apply for a five-year valid extension. In order to stay long-term, investors will need to change to another, non-time limited category.

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

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

From July 1, 2013, through July 1, 2015, some foreign buyers will not need work permits. For buyers from non-European Economic Area (EEA) countries, a new pilot program permits visits for making purchases worth at least 5 million euros. The buyers must be engaged in inspecting deliveries or receiving instruction in the use of purchased products.

If the buyer is in the Netherlands to receive specific training, the work permit exemption will last for one year. It can be extended to a maximum of two years if the visit will also include inspections or certifications of products. Either way, the employee’s activities must be reported to the Uitvoeringsinstituut Werknemersverzekeringen (Institute for Employee Insurance, or UWV) via the correct form within two days before starting work. Failure to file a report on time can incur a fine of 2,250 euros.

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

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.