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Netherlands – Government advisory group recommends amending staffing agency use rules

19 November 2014

European rules covering foreign workers in the Netherlands need to be revised and there should be an EU-wide blacklist of companies that commit employment-related fraud, according to the Dutch government advisory group SER, reports dutchnews.nl

SER; which comprises union, employer, and lay members, said a new plan needs to be drawn up to ensure worker mobility in Europe does not lead to some member states being disadvantaged. SER was asked to make recommendations for encouraging equitable labour mobility by Social Affairs Minister Lodewijk Asscher following union complaints.

The advisory group’s draft report advised that EU rules are often abused to the detriment of Dutch workers, who are losing out on jobs to cheaper foreign workers and unfair competition. In particular, it says the rules on using staffing agencies need to be revised.

Since 1996, companies have been able to take advantage of a clause in the legislation that allows firms to pay foreign workers in line with Dutch minimum wage rules, but pay social insurance and pension premiums in their country of origin – which is usually much cheaper.

SER also said measures need to be taken to ensure EU migrants integrate better in their host country and that their qualifications are properly used. Many EU migrants are overqualified for the work they are doing, SER pointed out.

The report comes as 10 Hungarian lorry drivers take legal action against Noord-Brabant-based transportation company Van den Bosch Transporten. They claim that they should have been paid according to the official Dutch pay and conditions agreement, rather than the much lower Hungarian pay scale.

The drivers, who are represented by the FNV trade union, said that they are flown from Hungary to Eindhoven airport. They then travel to the southern town of Erp to pick up their lorry and spend the next three weeks driving in the Netherlands and abroad.

Van den Bosch claims their work in the Netherlands is minimal and they are rightly paid according to Hungarian norms. The union, however, claims that their Hungarian subsidiary employer is a letter box firm and everything, including the job interviews, took place in Erp.

The case is expected to go to court in January 2015.