Employment conditions for posted workers in the EU

The Employment Conditions (Posted Workers in the European Union) Act (Wet arbeidsvoorwaarden gedetacheerde werknemers in de Europese Unie) stipulates the minimum employment conditions for foreign workers with a foreign employer temporarily posted to the Netherlands.

The Act provides better protection for these workers and combats unfair competition based on employment conditions. The Dutch Labour Inspectorate monitors compliance with the Act. Foreign workers who are temporarily employed by a Dutch employer are not covered by the Act.

Employment conditions for posted workers from other EU countries

The Employment Conditions (Posted Workers in the European Union) Act applies to employers from other EU countries who come to the Netherlands temporarily with their own personnel to do a job. These employees are in any case entitled to the main employment conditions provided for in Dutch law, such as:

  • the minimum wage;
  • sufficient rest periods;
  • safe working conditions;
  • equal treatment of men and women;
  • a minimum number of days of leave.

In sectors where a generally binding collective agreement applies, the key employment conditions in that agreement also apply.

The collective labour agreement that the foreign employer must apply is determined by the scope of the agreement. When deciding which agreement to apply, the employer only needs to consider its activities in the Netherlands. Activities outside the Netherlands do not matter. The agreement that applies will usually be the agreement for the branch of industry which covers most of the employer’s activities in the Netherlands.

The Ministry of Social Affairs and Employment gives an overview online of all collective labour agreements (in Dutch). That site has translations of the labour agreements for branches of industry where most foreign posted workers in the Netherlands work.

The website english.postedworkers.nl gives more information about employment conditions for posted workers.

Enhanced employment conditions for workers posted for longer than 12 months

Posted workers from other EU countries who work in the Netherlands for longer than 12 months have the right to enhanced employment conditions. Besides the employment conditions for posted workers from other EU countries, they have the right to all the same employment conditions as Dutch workers, except for a supplementary pension and protection in the event of dismissal. However, employers may extend the period in which employees only have the employment conditions for posted workers from EU countries to 18 months. After 18 months, posted workers automatically have all the same rights as Dutch workers.

Temporary agency workers from the EU immediately have all Dutch workers’ rights

Temporary agency workers from other EU countries who work in the Netherlands immediately have the right to the same employment conditions as Dutch workers, except for a supplementary pension and protection in the event of dismissal. This means that temporary agency workers do not have to wait 12 months for these rights.

If the collective labour agreement for temporary agency workers applies to the company where a foreign temporary agency employee works, then the temporary agency worker has the right to all the employment conditions under the agreement, except for a supplementary pension and protection in the event of dismissal.

Posting of workers continues when a worker is replaced

If a foreign employer replaces a worker, that still counts as the same posting, and the new worker will get all the same employment conditions as Dutch workers sooner than 12 months – as long as the work and the posting location are the same.

Compensation for costs involved in posting

Employers must make clear in their accounts the costs involved in posting for which they have compensated their workers, such as:

  • travel costs;
  • accommodation (rent for example);
  • meals.

Employers must record what part of the money they have paid to workers is salary and what part is an expense allowance. This will make clear that the worker is being paid the minimum wage provided by law or laid down in the collective labour agreement, and that the expense allowance is in addition to the minimum wage.

Better monitoring of compliance with labour laws in the event of posting

The Employment Conditions (Posted Workers in the European Union) Act ensures better monitoring of companies covered by this legislation. If they fail to comply with Dutch labour laws, they may be fined by the Dutch Labour Inspectorate.

Companies have to prove that they are complying with the law. Having pay slips available at the address/place where the work is performed  or providing immediate digital access to them, for example, enables the companies to show that they are paying their employees the wage to which they are entitled.

Example of posting to which the Act applies

To take an example, the Employment Conditions (Posted Workers in the European Union) Act would apply in the situation where a Dutch province has commissioned a bridge and contracts part of the construction work to a German company, which will bring its own personnel to work in the Netherlands for a year. These workers are protected under Dutch labour laws. This also means they are entitled to the Dutch minimum wage, even if the minimum wage is lower in Germany.

In addition, there is often a generally binding collective labour agreement that is applicable in the construction industry. This means that the workers can also lay claim to the wage laid down in the agreement for their job and experience.

Posting of Workers Directive and Enforcement Directive put into Dutch law in a single Act

The Posting of Workers Directive and Enforcement Directive have been put into Dutch law in the Employment Conditions (Posted Workers in the European Union) Act. The Terms of Employment (Cross-border Work) Act has been repealed.

Definition of posting in the Act

Under the Employment Conditions (Posted Workers in the European Union) Act, workers are posted by their employer if they work temporarily for the employer in a country other than the country where they usually work. The current employment contract must remain in effect during the worker’s stay in that country. The Act defines the posted worker as:

a worker who, as part of the transnational provision of services, temporarily performs work in the Netherlands but does not usually perform work in or from the Netherlands.

Different situations involving posting

Under this definition, workers are posted in the following situations:

  • when self-employed persons or employers come to the Netherlands with their own personnel;
  • when multinational companies post employees to their own offices in the Netherlands;
  • when temporary agencies assign agency workers to a job in the Netherlands.

More information about the Act

Read more about posting categories, the key employment conditions and enforcement measures.

For more information, see the information about posted workers in several languages on the European Commission website.

The government is striving for a level international playing field

The government believes that workers who perform the same work in the same place must be paid the same wage. This should result in less competition based on employment conditions between workers from different EU countries, for both companies and employees. The government will take a firm stance on this in the EU.