Requirement for Foreign Employees to Work
- if the employee has a specific expertise, which is (almost) not available in the Netherlands;
- the employee has obtained a valid individual decision of the Tax and Customs Administration;
in a period of 24 months before the employment in the Netherlands commenced, the employee must have lived at least 16 months more than 150 km in a straight line from the Dutch border.
Does a Foreign Employer need to Establish or Work through a Local Entity to Hire an Employee?
Foreign employers can hire employees in the Netherlands either through a local entity or a foreign entity. Before deciding on how to structure their business in the Netherlands, foreign employers are advised to consider the tax consequences.
Limitations on Background Checks
During the pre-employment phase, only personal data specifically required for the position that the applicant applied for, can be screened. Standard screening procedures are normally not allowed in the Netherlands. In the pre-employment phase no extraordinary personal data of the candidates may be screened. This is only allowed if there are exceptional requirements for the vacancy that make this type of screening necessary.
Restrictions on Application/Interview Questions
The employer can only ask about an applicant’s health situation if a medical examination is required for the job by law. Of course, it is prohibited to discriminate against applicants on the grounds of – among others – gender, race, age, civil status, religion, and so on. Every company is required to comply with the regulations outlined in the General Data Protection Regulation (in Dutch: AVG). If the employer fails to do so fines can be given by the Dutch Data Protection Authority.
The Recruitment Code of the Dutch Association for Personnel Management and Organisational Development (in Dutch: Nederlandse Vereniging voor Personeelsmanagement & Organisatieontwikkeling, abbreviated to: NVP) contains basic rules that employers should observe during the recruitment and selection process. The purpose of this code is to provide a standard for a transparent and fair recruitment and selection procedure. This Code is not binding, but employees can derive protection from these rules. The Code for example prohibits the requirement of a photo of the applicant prior to the applicant being invited to an interview.