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In this edition we start with ABAB Accountants & Consultants
Working across the border: three things you as an employer need to arrange for your employees
Your company is located in the Netherlands. Your employees do not only work in the Netherlands, but also in other countries within the European Union. Consider, for example, installing a machine for a client in Belgium or performing maintenance work in France. The Global Mobility Services of ABAB Accountants and Consultants have lately received a lot of questions about regulations for international employees. There are three things you should have arranged properly.
Employee notification obligation
Globally, you have to verify per country whether there is a reporting obligation for your employees (the notification obligation). If you report this, you declare as a service provider that you will be carrying out work with your company with one or more employees in another country. The notification must often be made before the employee starts working in that country. Based on the European guidelines, the notification obligation applies within the European Union for service providers who employ their employees in another Member State. Member States have transposed these guidelines into their own national laws and regulations. Per country, there are general rules and sector-specific rules for this notification obligation. For example, a mandatory reporting system has already been set up in Belgium. This European reporting obligation consists of very strict rules. If you do not make the report in time or the report is incomplete or done incorrectly, you can get a large fine. “Hard core” terms and conditions of employment It is possible that the law of another country has an effect on your working relationship with the international employee. It is possible that the national law and regulations of a country and/or a collective labor agreement may require a mandatory minimum of working conditions. These are, for example, working conditions in the area of remuneration, working and resting times, minimum number of days off (or days of leave) and employment conditions. These mandatory terms of employment are also known as the "hard core" and can have consequences for you, regardless of the law governing your employment contract. In several countries, the "hard core" is strictly controlled and maintained. In case correct papers are missing or do you not meet the employment conditions, high fines can follow.
Certificate of Coverage (A1 form)
Certificate of Coverage, also known as the A1 statement, is an European form. With this form, an employee shows in which country he/she is insured for social security. Is your employee going to perform a service for you outside the Netherlands? Then the employee must have an A1 statement.
Complex guidelines
Doing business is often not bound by national borders. The same goes for employees. Some employees join an employer outside their country of residence. Other employees make business trips outside their usual working country. And sometimes people work on behalf of an employer in another country for a short or longer period. In all these cases, you as an employer will have to deal with the applicable law in both the home country of employment and the host country. Therefore always ensure that you are well informed or contact an expert in time.