A freelancer platform is being fined by the Netherlands Labour Authority in connection with violations of the Dutch Foreign Nationals (Employment) Act (Wav) and Placement of Personnel by Intermediaries Act (Waadi). The platform arranged for foreign workers to work for companies, even though these workers were not permitted to work in the Netherlands. 9 companies that hired these workers for jobs in the hospitality and education sectors will also be fined.
Fines to a total of € 146,500 have been imposed for the violations of the Wav. The platform has been fined € 6,000. The 9 companies that hired staff are being fined between € 4,000 and € 27,000, for a total of € 80,500.
A platform may be considered an employer under the Wav
The platform takes the view that it is not an employer, but merely brings workers and businesses together. Based on the actual working practices, the Netherlands Labour Authority has reached a different conclusion.
The Wav provides a broad definition of the term 'employer'. For example, no employment agreement needs to exist between the employer and the foreign worker. Any party that engages a foreign worker to carry out work on behalf of a company may also be regarded as an employer for the purposes of the Wav.
The obligations under the Wav therefore also apply to a platform, even if it presents itself solely as an intermediary. The Netherlands Labour Authority examines the actual circumstances and the way in which companies operate in practice.
Employers must check whether foreign workers are permitted to work in the Netherlands. If they allow employees to work who are not entitled to do so, they may be fined.
Violations of staff provisioning and hiring rules, as well
In addition to the violations of the Wav, the Netherlands Labour Authority identified violations of the Waadi. This Act lays down rules governing the provision of workers to another company. This is the case, for example, when employees work at another company under that company's supervision and management.
The platform has been fined € 3,400 for violations of the Waadi. 2 companies that hired staff were fined € 2,000 and € 1,400, respectively. The total amount of the fines is € 6,800.
Companies that hire staff, too, have a responsibility to check (in advance) whether the company supplying the staff complies with the legal requirements. The Netherlands Labour Authority checks whether employers and other relevant parties are complying with these obligations.
As from 1 January 2027, an admission scheme will apply to companies that supply workers. The scheme is designed to prevent companies from circumventing the rules and to tackle malpractices in the staff provision sector.
Reporting helps!
The Netherlands Labour Authority frequently identifies violations relating to fair work. The Action Plan for the Verification Obligation helps employers check whether someone is permitted to work in the Netherlands.
The Netherlands Labour Authority is keen to emphasise the importance of reporting unfair, unsafe or unhealthy working conditions. Reports and tips are indispensable when it comes to tackling these kinds of abuses. Abuses can be reported via the website of the Netherlands Labour Authority.
More information is also available at zelfinspectie.nl (Dutch).