On June 17, 2016 a decree was published that enters into force part of the Employment Conditions of Seconded Employees in the European Union Act. The Netherlands has thus implemented European directives to impose and respect the terms and conditions of employment of seconded employees. This Act imposes certain obligations on service providers operating in the Netherlands.

We informed you about the relevant bill in February 2016. For more information about this, please refer to our earlier report on the website. Below we describe in broad terms what the entry into force means in practice.

Obligations as of June 18, 2016

As of June 18, 2016 rules apply concerning respect for the hard core of employment conditions of seconded employees. These rules cover, for example, maximum employment periods, the number of paid vacation days and health and safety at work. There must be a designated contact person to answer questions about the provision of services in the Netherlands and, lastly, there is a documentation obligation for service providers operating in the Netherlands.

Amendment as of July 1, 2016

In the Work and Security Act, the provision on the way in which consecutive periods of employment are counted in order to establish whether entitlement to a permanent contract exists (“ketenbepaling”) has been amended in respect of seasonal work. This amendment will take effect on July 1, 2016.  If work, as a result of climate or natural circumstances, is seasonal, the interval of a maximum of six months can be scaled back to at least three months by way of the collective labor agreement. Specific conditions apply for this.

Future obligations

The Act contains a notification obligation for certain foreign businesses and self-employed persons wishing to provide services in the Netherlands. This makes it possible to monitor whether employees receive the minimum employment conditions to which they are entitled. The recipient of the services must check whether this notification is actually made and verify whether the people coming to provide the services are the same as the people listed in the notification. However, this notification obligation has not yet taken effect, because the digital notification system is still under development.