A university of applied sciences in North Brabant and 2 healthcare institutions in Flevoland and Drenthe have been fined around € 700,000 in total for violating the Foreign Nationals (Employment) Act and the Minimum Wage and Minimum Holiday Allowance Act. The total fines have risen substantially, as legal requirements were not met for dozens of employees.
The university of applied sciences has been fined € 347,200 for violations of the Foreign Nationals (Employment) Act. The healthcare institution in Drenthe has been fined € 224,000. The healthcare institution in Flevoland has been fined € 132,000, plus an additional € 33,000 for violations of the Minimum Wage and Minimum Holiday Allowance Act with an incremental penalty payment order. Both healthcare providers have also received a warning of a preventive shutdown (WPS) of operations to prevent any further violations of the Foreign Nationals (Employment) Act.
Intensive investigation
Following an extensive investigation, the Netherlands Labour Authority established that the educational institute and the healthcare institutions, in cooperation with an intermediary agency, brought at least 62 experienced Indonesian nurses to the Netherlands under false pretences to address staff shortages in the Dutch healthcare sector.
No placement, all work
During recruitment in Indonesia, the qualified nurses were promised that they would follow a higher professional education (HBO) programme in the Netherlands. As part of the programme, they would work 16 hours a week on placement as trainees under supervision. In addition, they would work 16 hours a week at healthcare institutions. In practice, however, they were used as full-time employees to carry out a range of care duties and worked more hours than agreed. There was no supervised placement.
Sham arrangement
The relatively accessible route for students to attend an HBO programme with placement hours was used to obtain residence permits. In reality, they were required to work full-time. The employers did not hold the required work permits for these healthcare students. For this, the university of applied sciences and the healthcare institutions have been issued with a WPS in addition to the fines, to prevent new students from being used in the same way for regular care work.
Shocking
The Netherlands Labour Authority had previously ordered the healthcare institution in Flevoland to repay unlawfully withheld wages to 22 healthcare students. The employer complied.
Marijke Kaptein, Netherlands Labour Authority director of supervision: 'That seemed acceptable at first, but I was taken aback by what the inspectors found next. Shortly after the healthcare institution repaid the wages, it sent the students claims, sometimes for even higher amounts, for costs that it sought to recover from them. The students paid these claims out of fear. This is unlawful, and we find it deeply concerning.'
The Netherlands Labour Authority has now demanded the employer repay these wages to the students again, subject to a penalty of € 1,200 per day for non-compliance. The institution has also been fined € 33,000.
Fair work
The university of applied sciences, the intermediary and the healthcare institutions involved had planned to bring around 1,200 students to the Netherlands each year under this arrangement. The arrangement with the healthcare students has now been discontinued. The Netherlands Labour Authority recognises patterns in this case that it identified in its recent reports on revenue models, as well as other lessons from its supervisory work. The Netherlands Labour Authority calls on employers and institutions to think such plans through carefully. Employers must exercise due diligence in relation to intermediaries and recognise their own reliance on others and responsibilities.