On March 1, 2020 the reporting obligation under the Posted Workers in the European Union (Working Conditions) Act (Wet arbeidsvoorwaarden gedetacheerde werknemers in de Europese Unie; WAGWEU) was introduced. In short, this reporting obligation means that employers and service providers established in the EU/EEA and Switzerland must report in advance, via the available online registration system, if they temporarily employ a foreign worker in the Netherlands.
The Inspectorate SZW did enforce the reporting obligation during the first six months but did not impose any penalties. This trial period ended on September 1, 2020 and thus the freedom to voluntarily comply with the reporting obligation has come to an end. From now on, the Inspectorate SZW may impose penalties on both the foreign employer and the Dutch contracting party if they do not fully comply with the conditions of the WAGWEU.
The penalty for foreign employers who do not report on time lies between EUR 1,500 and EUR 4,500 for each employee not reported (on time). The amount is dependent on the total number of employees for whom the penalty is imposed. Dutch contracting parties can receive a penalty of EUR 1,500 if they fail to check a notification or fail to do so on time.
To be able to make the notification, the foreign employer must register via the www.postedworkers.nl website. Of importance is that a notification not only must be complete, but that it must be submitted before the activities commence. Moreover, in the Netherlands the reporting obligation is composed of two parts. A notification is only complete if the Dutch contracting party or recipient of the service has logged in via the website to check the notification and to verify it. The Dutch contracting party is given a little more time for this: it must do so within five days of the commencement of the activities. Moreover, a number of exceptions have been formulated where reporting can be omitted.