The 5 most frequently asked questions about the WagwEU and 5 practical tips
We’ve noticed that the Dutch Labor Inspectorate has been increasingly strict in recent months when it comes to enforcing the WagwEU, particularly the duty to verify notifications of posted workers. Companies that did not comply with the regulations have received letters from the Inspectorate; maybe your firm has, too. As we’ve received numerous questions about the WagwEU lately — especially regarding the obligation to verify notifications — we’ll address the five most frequently asked questions in this blog post. As a bonus, we provide five practical tips to help streamline your posted workers notification and verification process.
Why is it necessary to notify and verify?
The WagwEU (the Dutch law on labour conditions for posted workers within the European Union) is based on the EU Posted Workers Directive. Its goal is to prevent the exploitation of foreign workers and unfair competition within the Dutch labour market. By enforcing a notification requirement, the Dutch Labor Inspectorate can monitor whether posted workers are employed under safe, healthy, and fair conditions.
Verification is a crucial part of this notification process. The client must first verify the notification’s correctness, before it is forwarded to the Dutch Labor Inspectorate. This ensures that both the client and the contractor agree on the information that is included in the notification.
When is notification mandatory?
Notification of a posted worker is required if:
You are receiving a service from a foreign company,
The foreign company is based in the EEA or Switzerland,
The foreign company temporarily posts workers to the Netherlands, who
Are from the EEA or Switzerland.
This obligation also applies if you hire a self-employed individual from the EEA or Switzerland to perform work in the Netherlands.
How does the Wagweu registration process work?
The registration process consists of three steps: information, notification, and verification. The Dutch company is responsible for steps 1 and 3, while the foreign company is responsible for step 2.
It’s essential that this process starts timely. The foreign employer must submit the notification through the online portal before the actual work begins. The Dutch client has up to five days after the work has started to verify the notification.
Should changes be reported?
The notification must be updated through the online portal if:
A new or different foreign worker is assigned to the project,
The foreign workers will be working in the Netherlands for a shorter or longer period than initially planned,
The work location changes.
For the Dutch client, it’s important to inform the foreign company of any updates and verify the notification after changes are made.
What happens if the Wagweu registration is not made or is incorrect?
The Dutch Labor Inspectorate has the authority to impose fines if the notification requirements are not met. These fines can be levied against both the Dutch company and the foreign company.
5 tips for a smooth and compliant notification process
Despite the best intentions to follow the notification obligation, we often see that the necessary notifications and verifications are either not completed or are done too late. This can happen if the notification requirement is not known within the relevant parts of the organization or if there’s no established process for handling registrations.
Here are some tips to help create a smooth workflow:
Tip 1: Include in your contract with the foreign contractor that they are required to comply with the notification requirement.
Tip 2: Inform those responsible for procurement and hiring within your organization about the notification requirement. Ensure they notify the foreign employer or self-employed individual about this obligation before the work begins. If possible, also provide the following details: your company’s information, the SBI code of the assignment (often the same as your company’s, but not always), the applicable collective labour agreement (if relevant), and the worksite address.
Tip 3: Decide who within your organization is responsible for verifying the notification. Is it the person handling procurement, or does it fall under HR, planning, legal, or another department? Ensure that a specific person or department is tasked with this responsibility.
Tip 4: Provide the correct email address of the designated person or department to the foreign company or self-employed individual. Once the notification is sent, this person or department will receive an email with a verification request.
Tip 5: Double check whether the notification has been sent before the assignment starts. If not, remind the foreign company or self-employed individual to send the notification.
Want to know more?
Are you not sure whether a posted worker notification is required for a specific project, or do you need assistance with setting up your notification process? Feel free to reach out to one of our advisors!
