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Your risks2023-04-11T19:29:30+00:00

Your risks

Do you work with (sub)contractors, employment agencies or ZZP'ers? Controlling authorities such as the Tax Authorities and the Dutch Labour Inspectorate can impose forse fines if
these companies do not comply with laws and regulations.
Reason enough to do everything you can to prevent this. But how?

Contoling agencies advise you to keep proper records of companies and workers who work for you work for you in the chain. But that administration is complex and extensive. Knowledge of Dutch and European laws and regulations is needed to determine what data and documents of companies and persons must and may be recorded.

Compli assures you of correct administration and helps you comply with all legislation and regulations that apply
working in the chain.


Legal liability Financial liabilitySubstantial finesSubsequent charges

What risks do you face?

The European and Dutch laws and regulations you have to deal with are complex, comprehensive and contain many exceptions. Below is an overview of the main risks resulting from not, or not correctly, complying with these laws and regulations.

Do you outsource work to a subcontractor and they fail to pay payroll taxes to the IRS? Based on chain liability, you can be held liable for this. The Tax Office states that this can be prevented by keeping "proper records" of company and personal data. Complex, as this requires you to know exactly when which data and documents should be recorded. In addition, you must have a specification of hours worked as well as comply with the AVG (privacy).

Are you hiring staff from a lender, and they are not remitting payroll taxes and VAT to the tax authorities? Then you can be held liable for this. Even when hiring personnel, you can ensure that the risk of liability is minimized by keeping accurate records.

Companies based in a country from the European Economic Area (EEA) and Switzerland that temporarily have their personnel perform work in the Netherlands are subject to the Law on Working Conditions for Posted Workers in the European Union (WagwEU). This company is obliged to report this through an online reporting desk Posted Workers of the Ministry of SZW. You as the client must verify the report. Violation of the WagwEU can amount to a fine of €21,750, both for the company and for you.

Workers from outside the EU/EEA or Switzerland usually need a work permit (TWV) or Combined Residence and Work Permit (GVVA). Depending on how long the employee is staying.

The Foreign Nationals Employment Act applies not only to the employer of a third-party worker but also to the employer's principal who actually has the third-party worker perform labor. Thus, if you work with a subcontractor or temporary employment agency, and they work with an illegal worker, you are also in violation.

The fine for this is €8,000 euros per person for the employer, and therefore also for you. This applies per illegally employed worker. Failure to provide a copy of a valid permit as a contractor to your client is also subject to a fine of €1,500.

The Law on Allocation of Labor by Intermediaries contains the rules for hiring and mediating personnel, such as temporary workers. According to this law, hirers have an obligation to register. As a hirer of personnel, you must check whether this registration in the Trade Register is correct. Both parties can be fined if it is not. If violated, the fine is €12,000 per employee.

Reduce risks?

Compli ensures correct administration and helps you comply with all the laws and regulations involved in working in the chain. In addition, you save on your administrative hours. Your subcontractor or lender is responsible for the administration in Compli.

We are here for all general contractors and project management companies that want to professionally mitigate liability risks when working in the chain.

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