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Cross border employment and international secondment

Cross border employment comes in various forms and is becoming more and more common

Internationally operating companies, service providers, with employees or freelancers, cross border employment comes in various forms and is becoming more and more common. What do you take into account (under employment law) when an employee temporarily goes to work in another EU country? Which terms of employment apply to service providers who temporarily come to work in the Netherlands?

In all cases (both within and outside the EU) it is important to structure an assignment legally in advance, in which areas such as social security and taxes are also very important. Permits and visas (for work and residence) can also play a major role in the structuring of an assignment.

Within the EU, the Posted Workers Directive (96/71/EC) has played an important role in the field of secondment since the end of the 1990s, which briefly states that workers seconded within the EU are entitled to equal treatment and a minimum (hard core) of terms of employment, such as minimum wage, working and rest periods, holidays and working conditions. Following the implementation of the Enforcement Directive (2014/67EU), Directive 2018/957EU was recently adopted, leading to a revision of the European provisions on posting of workers in 2020

The revision directive

The aim of the revision directive is to strike a new and better balance between, on the one hand, promoting the freedom to provide services in the European Union and ensuring a level playing field for businesses and, on the other hand, protecting the rights of seconded employees. It focuses on ensuring the protection of seconded employees during their posting, by laying down additional provisions on the terms and conditions of employment for these employees, based on equal pay for the same work in the same place.

Provisions on accommodation and supplementary allowances are now being added. If a seconded employee has worked in the Netherlands for more than twelve months, even more terms of employment apply. This means that virtually the entire statutory regime of the temporary country of employment will apply (with the exception of dismissal law and supplementary company pension schemes). The period of twelve months can be extended to eighteen months under certain conditions.

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