Image Source: FreeImages
Whether you are a multinational corporation or a small business, navigating the complexities of local laws and regulations is crucial. In the Netherlands, one such regulation that businesses hiring or outsourcing staff must be aware of is the Waadi (Workers Allocation by Intermediaries Act).
The Waadi Regulations: An Overview
In the world of international business, the Waadi regulations in the Netherlands play a pivotal role. The Workers Allocation by Intermediaries Act, known as Waadi, is a law that oversees agencies providing personnel. Those agencies must register with the Business Register, and if you hire personnel through an agency, you must verify the registration. Any discrepancy in registration may result in penalties for both parties.
Registration Obligation: A Key Aspect of Waadi
As an integral part of the Waadi regulations in the Netherlands, agencies providing staff as a paid intermediary must register their business activity with the Business Register. This process is known as the Waadi registration. For instance, if you run a secondment company or a temp agency, you are obligated to register this activity.
The Waadi Check: Ensuring Compliance
The Waadi check is a compulsory step for businesses hiring temporary staff through an intermediary. This legal obligation ensures that the intermediary’s registration in the Business Register is accurate. If the company is not registered correctly, you are not permitted to hire staff through them.
Avoiding Penalties
Maintaining compliance with the Waadi regulations is essential to avoid penalties. If you are already working with an agency and it is not properly registered in the Business Register, you risk a fine. Therefore, always ensure to verify the Waadi registration before you commence hiring personnel.
Protection of Employees under Waadi
The Waadi Act is designed to combat illegal labour and exploitation of workers. The registration requirement makes it easier to detect fraudulent activities such as illegal labour, sham constructions, excessive working hours, and underpayment. The Waadi registration thus promotes fair competition and provides better protection for employees.
Ensuring Fair Practices: The Role of the Agency
As a hirer, it is your responsibility to verify that the employment agency complies with the law. Unfortunately, some agencies do not operate fairly, leading to worker exploitation and unfair competition. If the temporary employment agency underpays the workers who work for you, the workers can hold you liable.
Using the Checklist: A Helpful Resource
Achecklist is provided to help you select an employment agency that adheres to the rules. This tool assists you in ensuring fair and safe work practices with temporary workers.
The SNA Quality Mark: A Seal of Trust
An employment agency with theSNA quality mark is included in the Labour Standards Register of the Labour Standards Foundation. Regular checks are carried out on all registered companies. By hiring staff from a company with the SNA quality mark, you limit the risk of liability for payroll taxes and VAT.
Strike Break: A Critical Point to Remember
In the event of a strike, the Waadi Act prohibits lenders from offering workers to replace striking employees. Temporary workers are not allowed to take over the work of strikers. This practice, known as strike breaking, is strictly forbidden.
Reporting Obligations for Foreign Employers
All businesses posting workers to the Netherlands temporarily must adhere to Dutch rules and regulations. This includes registering with the Tax Administration of the Netherlands and paying statutory minimum wages. If you run a business in an EEA country or Switzerland and assign employees to your Dutch customer or branch on a temporary basis, you must notify the Dutch government of the posting of your workers.
Conclusion
Navigating the Waadi regulations in the Netherlands can seem daunting, but with proper knowledge and adherence, it is manageable. It is crucial to understand the responsibilities and obligations that come with hiring or outplacing staff to Dutch companies. By following the guidelines provided in this article, you can ensure your company’s compliance with these laws, thereby safeguarding your business from potential penalties and promoting fair employment practices.
Remember, the key to successful outplacing staff in the Netherlands lies in understanding and adhering to the Waadi regulations. Here at House of Companies, we are committed to empowering international entrepreneurs by simplifying legal processes and providing valuable resources. Feel free to reach out to us for any further assistance or queries regarding the Waadi regulations in the Netherlands.
