The WagwEU implements the EU posted employees directive and the enforcement directive in a single act. The enforcement directive belongs with the posted employees directive, which determines what terms of employment employees of European companies are entitled to when they are temporarily working in another member state. The enforcement directive contains measures that enable better checks on whether employees are obtaining the terms of employment to which they are entitled.

1. Posting employees
to the Netherlands “Termsof
employmentAct“
(WagwEU)
October2017

2. Terms of employment act
The WagwEU implements the EU posted employees directive and the
enforcement directive in a single act. The enforcement directive belongs with
the posted employees directive, which determines what terms of employment
employees of European companies are entitled to when they are temporarily
working in another member state.
The enforcement directive contains measures that enable better checks on
whether employees are obtaining the terms of employment to which they are
entitled.
“
”

3. What does WagwEU say?
Employers in other EU countries who temporarily come to the Netherlands with staff
to carry out an assignment (posted employees) are covered by the WagwEU: There are
three categories of posting:
1. Pure service: This refers to a service provider from another member state that comes to the
Netherlands with staff to carry out an assignment under its management and supervision. An example
would be a German company that comes to build a bridge for a Dutch service recipient.
2. Posting to the Netherlands within multinational companies: Posting can also take
place when an employee in a branch office of a company in another member state is posted to a
branch office of the same company in the Netherlands.
3. Temporary staffing. Sending temporary agency employees to work in the
Netherlands when the agency is based in another member state: In the case of
temporary staffing, the management and supervision are in the hands of the organisation hiring the
staff (the service recipient) rather than the service provider (the temporary staffing agency). The
temporary staffing agency remains responsible for the terms of employment of the agency employee.

4. Core Components of employment
terms
1. maximum working hours and minimum rest periods;
2. the minimum number of days leave during which the employer is obliged to pay
3. wages, and additional allowances relating to holiday;
4. the minimum wage, whereby this minimum wage includes at the very least:
- the applicable wage for the period in the job scale;
- the applicable reduction of working hours per week/month/year/period;
- supplements for overtime, shifted working hours and irregular hours, including
public holiday supplements and shift supplements;
- interim salary increases;
- expense allowance: travel expenses and journey time allowance, pension costs
and other costs required for the performance of the job;
- regular salary increments;
- year-end bonuses;
- additional allowances relating to holiday,

5. Enforcement
The following administrative obligations apply to companies that come temporarily to
the Netherlands to carry out an assignment.
1. Information obligation (providing the Social Affairs and Employment Inspectorate with all the
information it needs to enforce the WagwEU);
2. The obligation to have certain documents, such as payslips and overviews of working hours, present on
site (or immediately available digitally);
3. Notification obligation. Foreign service providers must give advance notification of when, where and
with which employees they will be carrying out an assignment in the Netherlands. The recipient of the
service in the Netherlands must check that notification has been given and that it is correct;
4. The obligation to assign a contact person who can be contacted by the Social Affairs and Employment
Inspectorate and who functions as the liaison.

6. Your Taxand Contact
Chris is a partner of Taxand Netherlands and is the global service line leader of Taxand’s compensation
tax service line. Chris specialises in all tax and social security related matters concerning employee’s
remuneration and employer obligations. His extensive experience includes assistance in tax audits,
voluntary disclosures, equity related remuneration, executive salary splits, supply of labour to the Dutch
market and contractor/employee distinctions. Chris advises several multinational, domestic listed and
non-listed companies and foreign companies operating on the Dutch market.
Chris van Wijngaarden
Partner
Tel: + 31 (0)20 4356404 | chris.vanwijngaarden@taxand.nl

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TAXAND.NL
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