Everyone working in the Netherlands is entitled to working conditions according to Dutch standards. Action is taken against sham constructions, which aim to circumvent laws and regulations to reduce the cost of labour.

Fair labour market

Companies must follow the same rules. And employers and employees are expected to take responsibility themselves in paying taxes and social security contributions. That way, companies can compete fairly with each other and we maintain a fair labour market.

Tackling sham constructions

The Netherlands Labour Authority is cracking down on employers using sham constructions. It does this by inspecting companies and exchanging data with other organisations at home and abroad. Supervision, enforcement and detection are deployed where the most intractable problems are found and where the impact is greatest. If a violation is committed, the Labour Authority can impose a fine, bring work to a halt and prosecute if necessary.

Sham Constructions (Prevention) Act

The Sham Constructions (Prevention) Act (Dutch) provides additional opportunities to protect workers by countering underpayment of workers and unfair competition. This law came partly into force on 1 July 2015.

Prohibition of deductions from/adjustments against minimum wage

With effect from 1 January 2017, it is forbidden to make deductions from or adjustments against the minimum wage. The employee must receive at least the net part of the minimum wage in his bank account. The employer is obliged to pay at least the amount of the minimum wage through the bank and to specify expense allowances on the payslip. This enables the Labour Authority to better monitor whether the minimum wage is actually paid. Exception: under certain conditions, the employer may withhold money from the minimum wage to pay housing costs or health insurance premium for the employee. For more information on withholding amounts from employees' minimum wage (Dutch) see rijksoverheid.nl.

Reporting fraud

You can report (suspected) fraud or crime to the Netherlands Labour Authority.