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Position of an expat
The expat in Dutch employment law
The Netherlands is a popular destination for expats, thanks to its strong economy, international business community, and favourable living conditions. However, expats, or employees working in the Netherlands from abroad, find themselves in a complex legal environment where both national and international rules converge. Employment law for expats differs in important ways from that for local employees, and it is essential to have the right legal support.
An expat may fall under different regulations, depending on factors such as the length of stay, the country of origin, and the terms of the employment contract. The two most common situations are:
- Expats working under a local contract: when an expat is directly employed by a Dutch company, in most cases Dutch employment law applies. This means that the expat has the same rights and obligations as a Dutch employee, such as the right to holidays, protection against wrongful dismissal, and participation in the Dutch social security system.
- Expats working under a foreign contract (secondment): some expats remain employed by their foreign employer, but are seconded to the Netherlands for a certain period of time. In these cases, the employment law of the country of origin may remain (partially) applicable, although the expat may have to deal with mandatory provisions of Dutch employment law, such as dismissal protection, working time legislation, and safety in the workplace.
Important employment law concerns for expats
There are several aspects of employment law that expats and their employers need to consider:
- Employment contract and choice of law: it is very important to clearly define the applicable law in the employment contract. In many cases, Dutch law is chosen, but it is also possible to choose the law of another country. However, this should take into account European regulations and mandatory Dutch employment law, which cannot be excluded in certain cases.
- Social security: expats need to be clear about their participation in the social security system. If they work under a Dutch contract, they are in principle covered by Dutch social security. For secondments, there may be a different regime, e.g. based on the EU social security regulation or bilateral treaties.
- Tax regulations (30% rule): Dutch tax legislation can be attractive for expats because of the 30% rule. This tax benefit allows employers to pay 30% of wages untaxed to foreign employees working (temporarily) in the Netherlands. However, it is important to understand this scheme well and have it checked by an expert.
- Dismissal protection: expats subject to Dutch employment law enjoy the same dismissal protection as other employees in the Netherlands. This means that an employer must have a valid ground for dismissal, and must request permission from the UWV or the subdistrict court to terminate the employment contract. There may also be specific agreements on termination payments or notice periods in the employment contract, which can often be complex.
- Working conditions and safety: expats are covered by the Dutch Working Conditions Act, which protects the safety, health and welfare of employees in the workplace. Employers are obliged to provide a safe working environment, and expats should have access to the same protection as local workers.
Why consult an attorney?
Expat employment law can be considerably complex due to the interplay between different legal systems, contractual provisions and specific regulations such as the 30% rule. Engaging an employment attorney is crucial to avoid legal problems and ensure that both employers and expats comply with the law. Here are some reasons why it is wise to seek legal assistance:
- Assessment of employment contracts: I can thoroughly assess an expat’s employment contract and ensure that all provisions are in line with Dutch law. This prevents ambiguities and potential disputes on issues such as choice of law, terms of employment, and termination arrangements.
- Advice on tax and social security issues: the tax and social security aspects of an expat contract can be complicated. I can help determine which social security system an expat falls under and whether they are eligible for tax benefits such as the 30% rule.
- Dismissal procedures and protection: in the event of an employment dispute or dismissal, I can advise the expat or employer on the best steps to take.
- Compliance and risk management for employers: employers hiring expats need to ensure that they comply with both Dutch and international legislation. I can advise on employment law compliance and help draft policies in line with the law so that companies can minimise legal risks.
- Dispute resolution support: should a legal dispute arise, such as a conflict over employment contract compliance or a dispute over social security contributions, I can mediate or take the matter to court.
Conclusion
Expat employment law is a specialised area that requires legal expertise. For both expats and employers, it is essential to fully understand the rules and obligations surrounding employment law and tax matters. Engaging an experienced employment attorney will ensure that all legal aspects are correctly complied with, prevent disputes and provide certainty in the complex world of working internationally.
The information on this page is for informational purposes only and should not be considered specific legal advice. For personalized advice, please contact Ok Legal. Please note that the content of this page may change without notice and Ok Legal is not liable for any inaccuracies and/or missing information.
