General information for foreigners who come to the Netherlands to work and their employers can be found at the following sites:

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1 1. Mandatory documents and formalities 1.1 Introduction Employees who are posted temporarily to the Netherlands and their employers have to deal with various documents and formalities. Which documents and formalities apply to individual employees is determined by their nationality. This will be discussed in the following sections of this chapter. The nationality of employees does not affect the employments conditions they are entitled to when temporarily carrying out construction or infrastructure work in the Netherlands. Their employment conditions are determined by the European Directive on the Posting of Workers, the Dutch laws and regulations that are based on this Directive and the applicable Dutch Collective Agreement (cao). The chapters 2-6 of this document deal with the employment conditions these employees are entitled to by virtue of the CAO for the Construction Industry. Some of the terms that are important in this respect are explained in chapter 7. Among other things, attention is given to the financial liability with regard to posting and the possibilities to report employment malpractices. In chapter 8 you will find some useful links to relevant organisations and documents. 1.2 General information General information for foreigners who come to the Netherlands to work and their employers can be found at the following sites: This Dutch government immigration website contains information about licences and visa, work, social security, taxes, education and importing foreign cars. It also contains some links to authorities that are in charge of these matters. Languages: Dutch and English. EFBWW FIEC Posting report The Netherlands 09/ EN 1

2 / This is the general website of the Dutch national government, which provides detailed information on, among other things, immigration, work, housing, health care, education, jurisdiction and taxes. This website also contains specific information on: o foreigners who (intend to) work in the Netherlands: Dutch text: English text: o foreign employees who are posted to the Netherlands by their employers: Dutch text: English text: For citizens of EU countries, Switzerland, Liechtenstein, Norway and Iceland who want to come and work in the Netherlands, the government brochure 'New in the Netherlands; European labour migrants' provides general information. This brochure is available in many languages at The above-mentioned sources of information are not aimed specifically at foreign employees who are temporarily posted to the Netherlands. Therefore, additional specific information is included in the following sections about social insurance, medical care and taxes with regard to the temporary posting of workers. 1.3 Employees from EU member states, Switzerland, Liechtenstein, Norway and Iceland Social insurance: A1/E101 document In case of temporary posting from abroad (for a maximum period of 24 months), the social security legislation of the country of origin may continue to apply, subject to certain conditions. In such cases, posted employees continue to pay social security premiums in their country of origin and remain insured in that country. For this purpose, employees need to apply for an A1/E101 document, which is a certificate issued by the social security authority of the country of origin, on the basis of which employees are exempt from payment of social security contributions in the Netherlands. The addresses of the social security authorities in the countries EFBWW FIEC Posting report The Netherlands 09/ EN 2

3 concerned can be found at: (all EU languages). Employees should always carry the A1/E101 document on their person at their place of work in the Netherlands. If employees with an A1/E101 document are unable to work due to illness during their posting in the Netherlands, they must report this immediately to their employer and, within three days, to the Dutch social security agency UWV WERKbedrijf, international posting department, telephone (employees) or (employers). Medical care EHIC or S1/E106 document Foreign employees who are temporarily posted to the Netherlands are required by law to take out Dutch health insurance covering the costs of basic medical care. This requirement does not apply if they have an A1/E101 document (Certificate concerning applicable social insurance legislation). In that case, posted employees remain insured in their country of origin against medical expenses. If they want to use medical care in the Netherlands, they can ask the health insurer in the country of origin to provide them with one of the following documents: EHIC: European Health Insurance Card. Information on how to apply for the card and how to use it can be found at (all EU languages). An EHIC card entitles employees who are temporarily staying in the Netherlands to necessary medical care. The costs will be paid by the Dutch health insurance company Agis. See: nden_en_zwitserland (languages: Dutch, English and German). S1/E106 document: This document is intended for employees who are staying (living) in the Netherlands for a longer period of time. Employees with an S1/E106 document may qualify for a 'treaty policy' in the Netherlands. With such a policy, they are entitled to the same medical care as Dutch insured persons. This also applies for co-insured family members who are living in the Netherlands. This regulation is implemented by the Dutch health insurance company CZ. Application forms for the CZ Treaty Policy are available from CZ, international team, telephone For more information: Posted employees who do not use an EHIC or S1/E106 document are required to pay their medical expenses in the Netherlands themselves. They can ask their own health insurer to compensate these expenses. Taxes EFBWW FIEC Posting report The Netherlands 09/ EN 3

4 If no regulations had been made between countries, employees who are working in another country would pay tax on their wages twice: once in the country of work (tax on wages and salaries) and once in the country of residence (income tax). In order to prevent this, double tax treaties have been concluded. Most tax treaties stipulate that the country of work (in this case the Netherlands) is entitled to levy taxes on the salaries and wages that are earned there. There is an exception to the country of work principle: the so-called 183-day regulation. By virtue of this regulation, the employee's country of residence is entitled to levy tax if all of the following conditions are met: The employee's stay in the country of work does not exceed 183 days during a specific period. This period varies among countries that have signed double tax treaties. Usually this is a period of approximately one year. The wages are not charged to the profit and loss account of any permanent establishment, e.g. a branch, of the employer in the country of work. The employer who is paying the wages is not established in the country of work and the wages are not paid by or on behalf of a 'material employer' in the country of work. Sometimes it is difficult to determine whether the hirer can be regarded as a material employer wit regard to employees being posted from abroad. The hirer is regarded as a material employer if all of the following conditions are met: The employee has a power relationship with the hirer: the hirer decides how, when and under what circumstances the employee performs work. The work is carried out at the expense and risk of the hirer: the financial benefits and drawbacks of the work fall to him. The wages are charged to the country of work: this is the case as soon as the wage costs are charged roughly per unit of time. Most tax treaties include a 183-day provision. In order to properly apply the provision, the relevant treaty must be consulted. Information on tax treaties - in Dutch - can be found at and in English at: Multilingual information on taxes in the Netherlands can be found at For information by telephone: Tax Information Line for Non- Resident Tax Issues (Belasting Telefoon Buitenland): Work permit EFBWW FIEC Posting report The Netherlands 09/ EN 4

5 Citizens of EU countries, Switzerland, Liechtenstein, Norway and Iceland who come and work in the Netherlands do not require a work permit. There are two exceptions to this rule. Employees do require a work permit: if a company established in one of these member states posts employees to the Netherlands who have the nationality of a country to which the free movement of persons does not apply (e.g. a German company that posts a Ukrainian employee). However, a work permit is not required if 'cross-border services' are involved. Such services are subject to compulsory notification. See rschrijdende_dienstverlening/ if they have the Croatian nationality. This (provisional) measure was taken when Croatia entered the EU in Dutch information on this subject can be found at English information can be found at Employees from 'third countries' What are 'third countries'? In this context, 'third countries' are countries other than Switzerland, EU member states and EEA member states. With regard to social security, countries with which the Netherlands has concluded a bilateral social security treaty are not regarded as third countries. Social insurance and medical care Employees who are third country nationals and who are posted to the Netherlands, and who do not have an A1/E101 document 1, fall under the Dutch social security system. Consequently, social insurance contributions must be paid for them in the Netherlands. More information on this can be obtained from the Social Insurance Bank (Sociale Verzekeringsbank; SVB), International Posting Department, telephone See (several languages). 1 See paragraph 1.3. EFBWW FIEC Posting report The Netherlands 09/ EN 5

6 Under the Dutch Health Insurance Act (Zorgverzekeringswet), the employees concerned are obliged to take out basic health care insurance. Information on this can be found at (Dutch) or (English). Taxes Information on this subject can be found in paragraph 1.3. Work permit The employee is not allowed to be posted to the Netherlands until a work permit has been issued for him to the employer/hirer. An exception applies to the employee who has a residence permit/passport sticker with the endorsement 'work is freely permitted'. The work permit is valid for one year. More information on work permits (in Dutch) can be found at and (in English) at Visa, residence permit and combined residence and work permit An employee who intends to work in the Netherlands for a period of three months or less, needs a visa in addition to a work permit (the visa requirement does not apply to all third countries). He applies for the visa in his country of origin. An employee who intends to work in the Netherlands for a longer period than three months needs a residence permit in addition to a work permit. He can use a 'combined residence and work permit' (gecombineerde vergunning voor verblijf en arbeid; GVVA). See (language: Dutch) or (language: English). EFBWW FIEC Posting report The Netherlands 09/ EN 6