Dutch temporarily reduce fines for employers’ work permit breaches

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Employers in the Netherlands will now face a reduced fine of €8 000 per person for employing workers from outside the European Union, European Economic Area and Switzerland that do not possess a work permit until a revised fining system is introduced. 

Prior to this a fixed fine of €12 000 per illegal worker existed. However, the highest Dutch administrative court recently ruled that the fining system was unreasonable.  As there is currently no differentiation between the punishment for frequently dishonest employers and employers with one-time offences with regards to employing workers without work permits, the fine will temporarily be reduced until the Minister of Social Affairs has adjusted the system.  This is expected to happen over the course of 2016.

What does this mean for my business?

Before employing foreign nationals, it is important to determine whether they are exempt from needing a work permit and if not, whether a work permit will be required.  For those employees who do require work permits, the obligation falls to the employer to apply for the permit, which can take up to 5 weeks to be processed.  If you currently employ foreign nationals you must ensure that the proper work permits are in place. 

Further Information

Should you require more information or advice on this topic, please contact Wendy Terporten on +31 10 224 64 34, Loyens & Loeff Netherlands.

Further Reading

Ruling 201409962/1 / V6 (Dutch)

Decree of the Minister of Social Affairs and Employment of October 15, 2015 (Dutch)

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