Posted workers and the WagwEU
The Posted Workers in the European Union (Enforcement) Act (Wet arbeidsvoorwaarden gedetacheerde werknemers in de Europese Unie, WagwEU) implements the EU Posted Workers Directive (96/71/EC) and the Enforcement Directive (2014/67/EU) into Dutch law. It governs the rights of employees posted to the Netherlands from another EU member state, and the obligations of the foreign employer and the Dutch client business (opdrachtgever) towards those workers.
A posted worker is an employee who is sent by their employer to work temporarily in the Netherlands while remaining employed by their home-country employer. This is distinct from permanent migration: the employment contract remains with the foreign employer, and the posting is temporary. Common examples include contractors and subcontractors sending workers to Dutch construction sites, transport companies routing drivers through the Netherlands, and multinationals posting staff to Dutch subsidiaries.
Minimum conditions that must apply under Dutch law
Under the WagwEU and the revised Posted Workers Directive (2018/957/EU) implemented since 2021, posted workers working in the Netherlands for more than 12 months (or 18 months with a motivated notification) are entitled to virtually all Dutch employment conditions, not merely the minimum. For shorter postings, the following minimum conditions apply under Dutch law: minimum wage, maximum working hours and minimum rest periods, annual leave entitlements, health and safety rules, and equal treatment on grounds protected by Dutch anti-discrimination law.
Where a Dutch collective labour agreement has been declared universally binding (algemeen verbindend verklaard, AVV), its terms also apply to posted workers in the relevant sector. This is particularly relevant in the construction, transport and cleaning sectors.
Obligations of the Dutch client business
The WagwEU introduces chain liability for Dutch clients: a Dutch business that engages a foreign contractor who posts workers to the Netherlands may be held jointly liable for unpaid wages if the contractor fails to pay. Dutch clients should conduct due diligence on the compliance of their foreign contractors and may include indemnification provisions in their commercial contracts. The Dutch Labour Inspectorate (Nederlandse Arbeidsinspectie) monitors compliance and can impose fines.
The Allocation of Employees by Intermediaries Act (AEIA) gives the Dutch Labour Inspectorate additional investigative powers in cases involving posted workers and cross-border placements. In the construction, transport, and cleaning sectors, where collective labour agreements have been declared universally binding (algemeen verbindend verklaard), posted workers are entitled to the full terms of those agreements from the first day of their posting in the Netherlands. Dutch client businesses in these sectors bear a heightened risk: under the WagwEU chain liability provisions, the client may be liable for the full wage shortfall if the foreign posting employer fails to meet its obligations, and the Dutch Labour Inspectorate publishes enforcement decisions to promote compliance and public accountability.