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Flexible work

Using employment agencies, secondment and hiring in staff

Increasingly flexible labour market

The labour market’s flexibility is increasing at a rapid rate. The most recent economic developments add to this development. Businesses seek to achieve a high level of flexibility in order to respond to market developments as quickly as possible. They are usually very reluctant to offer labour contracts for an indefinite period.

Specific expertise

The use of employment agencies, secondment and hiring staff do require specific expertise. For example, strict guidelines apply to the staff and salary records of companies using workers through employment agencies, secondment or work mediation. The applicable legislation can also be complex.

Register Standardization Labour (Register Normering Arbeid)

The Register Standardization Labour (Register Normering Arbeid; “SNA”) has been introduced in order to combat dishonest working practises in employment agencies. The foundation issues a quality mark to all employment agencies, contractors and sub-contractors that work in accordance with NEN 4400-1 and NEN 4400-2 standard. This standard involves strict guidelines with respect to the staff and salary records of employment agencies and work mediators and is regarded as a legal and official method to control fraud. Organisations that meet the requirements are included in one central register.

Tax legislation

Employment agencies and work mediators need to meet certain tax legislatory rules. It is essential to ascertain who the employer is and who the withholding agent is for the payroll tax and social security contributions of the temporary worker. You also need to know when you need to consider the recipient’s liability and the Vicarious Liability Act, to ensure that the recipient cannot be made liable for the tax debts the business hiring out has not paid. Your business could also encounter the reverse-charge mechanism in VAT, for example, when the activities that are to be performed concern real estate.

International legislation

European and international legislation and tax treaties apply to business conducted abroad. The European Directive indicates in which country an employee is ensured for the social security when an employee lives in country A and works in country B, or works in more than one country. It is advisable to determine the consequences of international secondment beforehand.

Services Rubicon

Rubicon provides advice and support in organising the correct set-up for your organisation and advises you based on the legislation applicable to your situation. We can also detail the consequences of international secondment for you. In addition, we can provide support if you have any questions regarding the Dutch tax consequences of the international secondment and can prepare the Dutch income tax returns of your seconded employees. For more information, contact Casper Remmers or Arjan Timmers on phone number 040 253 34 30.