Working with foreign contractors on projects in the Netherlands: Build faster by getting compliance right upfront

Working with foreign companies on projects in the Netherlands: build faster by organizing compliance properly in advance

The largest Dutch projects are not “built with concrete and steel alone,” but with international supply chains: foreign main contractors, specialized (sub)contractors, and temporary employment agencies that mobilize large numbers of workers within a short period of time.

This clearly shows in locations such as the Maasvlakte and the Eemshaven. In recent years, projects have been carried out there with thousands of people on site, often involving multiple contractual layers, different nationalities, and tight deadlines.

And that is precisely where things often go wrong: not because companies lack technical expertise, but because Dutch compliance requirements are underestimated. In the Netherlands, a missing notification, incorrectly structured payroll, or insufficient chain control can lead to:

• • delays during gate checks or inspections,

  • fines (labour/immigration/employment conditions),

  • additional assessments of wage taxes/social security contributions,

  • chain/hirer liability,

  • and reputational damage towards the client or main contractor.

The solution is not “extra paperwork,” but planning ahead: compliance as part of your mobilization plan.

The reality of large-scale projects

Large projects attract international deployment and therefore also supervision. Major port and industrial projects are “high attention” environments. You want your file (labour, tax, social security, chain) in order before reaching peak workforce levels.

Energy- and industrial construction (E&I, mechanical, commissioning, shutdown work) requires not only technical perfection, but also tight organization of international labour: who is allowed to work, under which conditions, and who bears which responsibility within the chain?

Why the Netherlands is “compliance-intensive” for foreign construction and industrial chains

The Netherlands is an attractive market with continuous large projects, but the playing field is highly regulated. Companies working with international personnel quickly touch upon multiple domains at once:

• Corporate structure: do you operate through a Dutch entity, a branch, or as a foreign company? Have you taken on the work yourself or are you supplying workers? And what does this mean for registrations and your position in the chain?

• Permits & project access: on projects, “working” is often more than building. Consider specific registrations, such as Waadi registration, Posted Workers notifications, safety requirements and, in practice, matters such as a G-account (blocked account) in contracting chains. From 2027 onwards, the Wet toelating terbeschikkingstelling van arbeidskrachten (WTTA) will also apply to temporary employment agencies.

• Immigration: particularly when deploying non-EU nationals, many restrictive rules apply. Valid residence and work permits and timing are critical success factors.

• Employment law & minimum wage: Dutch labour law may (partially) apply, even if contracts are foreign. The Netherlands has a statutory minimum wage and holiday allowance, and in construction and the metal sector, a collective labour agreement (CLA) will in most cases also be relevant.

• Social security: the main rule is that employees are insured in the country of work. However, within the EU there are exceptions, allowing employees to remain insured in their country of residence or the country where their employer is established. Several important points of attention apply here.

• Tax & payroll: depending on the type of services and the chosen corporate structure, corporate income tax, VAT, wage taxes and social security contributions may come into play, as well as periodic administrative obligations, such as maintaining a Dutch payroll administration and meeting filing obligations, also for the employees involved.

• Housing: not unimportant; temporary personnel working in the Netherlands must also be accommodated. Given the tight housing market, finding accommodation can be problematic or may represent a significant cost item.

The importance of compliance throughout the entire chain is key: in the Netherlands, chain liability is a serious matter. If a (sub)contractor fails to pay taxes or wages, liability can be passed up the chain. Under the Foreign Nationals Employment Act (Wet arbeid vreemdelingen), a broad definition of “employer” applies, meaning that virtually all parties in the chain can be fined.

It is therefore essential that both the main contractor or client are aware of all risks, as well as the subcontractor(s) and contractors.

What this blog series covers: from tender to demobilization, without surprises

In this blog series, together with David Wernsing, attorney at Luscuere Wernsing Advocaten and specialized in immigration law and cross-border employment relationships, we discuss the key points of attention for foreign companies, (sub)contractors and temporary employment agencies involved in large Dutch projects, for example in infrastructure, construction, petrochemicals, energy and industry.

What's in it for you: faster mobilization, less disruption, more control and less risk

Well-organized compliance is necessary and a way to:

• • move more quickly through onboarding and site access,

  • protect your margins against fines/additional assessments and unexpected costs,

  • avoid disputes within the chain (who pays what, who is responsible),

  • maintain a professional position towards the client and main contractor,

  • and prevent delays and reputational damage.

Next article

In the next article in this series, we start with the basics: which structure and setup fit your role in the project (main contractor, (sub)contractor or temporary employment agency), and which “must haves” you want to secure already during the tender and mobilization phase.