Hiring an international employee in the Netherlands can offer many benefits, but also comes with legal and administrative obligations. Employers must comply with strict regulations regarding work permits, wage taxes and working conditions. The employment law lawyers of Arslan Lawyers explain what you, as an employer, should be aware of when hiring and supervising foreign workers and expats.
Difference between a foreign worker and an expat
The term “expat” is often used for employees who temporarily work in the Netherlands from abroad, usually at a higher job level. A “foreign worker” is any employee of a non-Dutch nationality who works here, whether temporarily or not. The same legal rules apply to both groups, but the tax and residence aspects differ.
Work permit and residency status
For workers from outside the European Economic Area (EEA) or Switzerland, a work permit (TWV) or combined permit for residence and work (GVVA) is mandatory. This is issued by the UWV and the Immigration- and Naturalization Service (IND).
Important conditions for a permit
- The employer must be able to demonstrate that there is no suitable candidate available within the Netherlands or the EEA.
- The employee must meet the income requirements for knowledge migrants or labor migrants.
- The employer must be registered as a recognized sponsor with the IND.
If an international employee is employed without a valid permit, the employer can be fined €8,000 per employee.
Employment agreement and working conditions
A foreign employee is entitled to the same working conditions as a Dutch employee in the same position. This means equal pay, equal working hours, pension accrual, and leave rights. The employment contract must always be put in writing, preferably in both Dutch and English.
Note that Dutch labor law often remains strictly applicable, even if the employee is formally appointed abroad. This follows from the European Rome I Regulation, which stipulates that employees retain the protection of the country in which they usually work.
Tax and social security
When hiring an international worker in the Netherlands, the employer must pay the correct wage taxes and check under which social security system the employee falls. This depends on the duration of the posting and the employee’s country of residence.
30% ruling for expats
Highly educated foreign workers who temporarily work in the Netherlands can use the 30% ruling under certain conditions. With this, 30% of the wage can be paid tax-free as compensation for additional costs due to living abroad. The employer must apply for this at the Tax and Customs Administration.
Duty of care and liability
Employers remain liable for a safe working environment, even for foreign workers. According to article 7:658 Civil Code, the same duty of care applies: the employer must prevent accidents, discrimination and exploitation. In the event of an infringement, the employer may be liable.
It is important that international employees receive clear instructions in a language they understand. They should also have access to company regulations, safety protocols and the occupational health and safety service.
Common mistakes by employers
- Registering an international employee too late with the IND or Tax and Customs Administration
- Incomplete employment contract or unclear language version
- No check on permit or residence status
- Unequal working conditions or wage differences
- Incorrect application of the 30% ruling
Rights of international employees
Foreign employees are also entitled to protection in the event of summary dismissal, transit payment and labor disputes. The law does not differentiate between Dutch and foreign workers with regard to dismissal protection, wage payment or compensation.
Sanctions for non-compliance
An employer who lets foreign workers work without valid papers risks hefty fines and damage to their reputation. The IND can also withdraw the recognition as a sponsor, preventing the company from hiring new foreign employees.
Frequently asked questions about international workers
Do I need a work permit for an EU employee?
No, employees from the European Union, EEA and Switzerland are allowed to work freely in the Netherlands without requiring a permit.
How long is a GVVA or TWV valid?
A GVVA or TWV is usually valid for one to three years and can be extended as long as the conditions are met.
Can an expat get a Dutch contract?
Yes, that is possible. In that case, Dutch working conditions and labor law protection apply fully.
What if my foreign employee becomes ill?
The employer must continue to pay wages and provide reintegration, just like with Dutch employees. See also our article on dismissal during illness.
Arslan Lawyers assists employers with international labor
The employment law specialists at Arslan Lawyers advise employers who hire foreign employees or expats in the Netherlands. We help with contracts, permits, tax matters and labor disputes. Do you want to be sure that you comply with the regulations? Please contact us for expert legal advice.
