SNA-certified Employer of Record compliance

What is the SNA standard and why is it relevant for an Employer of Record in the Netherlands?

The SNA standard is part of the SNA certification issued by the Dutch Labour Standards Foundation (Stichting Normering Arbeid). It is based on the NEN 4400 standard for staffing, payroll, and labor intermediation companies. The certification was created to help prevent fraud, disguised employment structures, and abuse within labor and payroll supply chains, while giving clients greater assurance and transparency.

A key aspect of the SNA certification is that certified organizations are periodically audited by an accredited inspection body. This means it is not a one-time assessment, but an ongoing system of quality assurance and risk management.

What is assessed under the SNA standard?

The SNA standard focuses on compliance with employment-related obligations and maintaining a reliable administration. Core areas that are reviewed include:

• Identification and registration of the company, including ownership structure and corporate information

• Correct filing and payment of Dutch payroll taxes and VAT

• Salary payments in line with the Dutch Minimum Wage and Minimum Holiday Allowance Act and other applicable employment conditions

• Proper employee identity verification and confirmation that employees are legally allowed to work in the Netherlands

• Measures to reduce liability and penalty risks in subcontracting, hiring, and labor supply arrangements, including proper documentation and recordkeeping
  

• Proper documented procedures are in place in order to safeguard alignment with all of the above.

These inspections are typically conducted twice a year and may take place more frequently if increased risks are identified.

How does the SNA standard apply to an Employer of Record in the Netherlands?

An Employer of Record (EoR) acts as the legal employer in the Netherlands on behalf of international or local clients. The EoR manages payroll, employment contracts, and compliance with Dutch labor and tax legislation. As a result, an EoR operates in many of the same risk areas as payroll and staffing companies, including tax compliance, minimum wage requirements, and employment law obligations.

For an EoR, operating under the SNA standard means, among other things, that:

• Payroll and HR-administration are demonstrably well organized

• Payroll taxes, social security contributions, and VAT are paid correctly and on time

• Expat employees and migrant workers are only employed when their residence- and work authorization are fully compliant

• The organization has implemented clear measures to reduce supply chain- and hirer liability risks 

Many Dutch EoR providers actively use the SNA certification as a quality and trust label toward international clients.

Benefits of working with an SNA-certified Employer of Record

For companies using an Employer of Record in the Netherlands, the SNA certification provides several practical advantages.

1. Reduced liability and penalty risks

• The SNA certification helps reduce risks related to hirer- and supply chain liability for payroll taxes and VAT, because the EoR has demonstrated compliance with its fiscal obligations.

• Under certain conditions, clients may even benefit from partial protection against liability for unpaid payroll taxes or VAT. 

2. Greater certainty around compliance and employment conditions

• Clients gain assurance that minimum wage requirements, holiday allowance, and other essential employment conditions are applied correctly, including compliance with sector-specific collective labor agreements where relevant.

• This reduces the likelihood of employee claims, tax reassessments, or enforcement actions by Dutch labor authorities.

3. Reliable administration and lower operational risk

The certification confirms that payroll, HR, and financial administration are structured, transparent, and auditable.

This lowers the risk of administrative errors related to salaries, social contributions, or expat arrangements, helping clients avoid operational disruption and reputational damage.

4. Stronger governance and easier internal approval

• Partnering with an SNA-certified EoR makes it easier to justify vendor selection internally toward finance, legal, procurement, and audit stakeholders, especially during international expansion.

• It reinforces the message that the company is choosing a compliant, transparent, and controlled approach to international hiring.

5. Preparation for future regulatory developments

With increasing regulatory focus on certification requirements in the Dutch staffing and flexible labor market, working with an SNA-certified EoR helps organizations stay ahead of future compliance expectations.

This reduces the risk of needing to restructure existing workforce arrangements if certification requirements become mandatory in the future. 

Practical example

Imagine a U.S.-based scale-up hiring a remote software developer in the Netherlands through a Dutch Employer of Record. An SNA-certified EoR ensures that payroll taxes and social security contributions are correctly processed and that the employment agreement complies with Dutch labor law. As a result, the scale-up avoids unexpected exposure to back taxes, penalties, or employment law violations.
This allows the company to focus on growth, while the EoR manages the complexities and risks associated with Dutch employment and tax regulations.

SNA certification is only part of the picture
This example illustrates the added value of an SNA-certified Employer of Record. However, SNA certification does not eliminate all risks, particularly in today’s international labor market, where employees frequently travel and work across multiple locations.

When selecting an EoR provider, it is therefore advisable to look beyond SNA certification alone. Employers should seek a partner with experience in Global Employment Mobility that, in addition to holding SNA certification, has a thorough understanding of both local and international legislation, takes a proactive approach, and identifies potential risks at an early stage.

Exterus combines SNA certification with extensive experience in Global Employment Mobility, helping organizations navigate the complexities of international employment and compliance.