When the Netherlands Labour Authority visits your company

Receiving a visit from the Netherlands Labour Authority (NLA) (formerly SZW Inspectorate) can be stressful for many companies, especially when it comes to checking compliance with the Foreign Nationals Employment Act (Wav). This act sets strict rules for employing foreign workers in the Netherlands. In this blog, we explain what companies need to pay attention to when the Netherlands Labour Authority visits in the context of the Wav, how such an inspection proceeds, what preparations and pitfalls there are and some examples.

The Foreign Nationals Employment Act (Wav) prohibits employers from allowing foreign nationals to work in the Netherlands without a valid work permit (TWV) or combined residence and work permit (GVVA), unless an exemption applies. The law is intended to prevent the displacement of Dutch workers and the exploitation of foreign workers.

The Netherlands Labour Authority may make unannounced visits to companies where foreign workers are suspected of working. This may be based on signals, reports, or risk profiles. Inspections are also common in sectors where migrant workers are frequently employed (such as agriculture, hospitality, construction, and logistics).

During the visit, the inspectors will first identify themselves and explain the reason for their visit. They will then ask questions to the employer and employees and request access to documents, such as payroll records, employment contracts, copies of identity documents and any permits. Inspectors have extensive inspection powers and are allowed to enter virtually any premises and request any documents.

If a violation is found, or there is reason for further investigation, a claim will often follow. The Netherlands Labour Authority will request documents and information. It is important to comply with a claim in a timely manner (because failure to respond will result in a fine), but also to carefully consider whether all the information can actually be requested. This is not always the case.

Once the Netherlands Labour Authorities investigation has been completed and a violation has been established, you will be invited to make a statement. The invitation will refer to your right to consult an attorney in advance. Be sure to make use of this right. Making a statement is a right, not an obligation. It is important to first assess the advantages and risks of making a statement.

Preventing violations

The best thing, of course, is to ensure that there are no violations, so that the Netherlands Labour Authority can quickly complete their investigation without finding any violations. Therefore, make sure that your company is well informed about the rights and obligations under the Foreign Nationals Employment Act. As an employer, you are also responsible for (the employees of) temporary employment agencies, contractors and lenders. You must determine for everyone who performs work that ultimately benefits your company wether they are permitted to work.