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.