Based on the Aliens Employment Act (in Dutch WAV), the Inspectorate of the Ministry of Social Affairs and Employment is authorised to impose fines in the event of illegal employment. These fines are very hefty, partly due to the fact that the fine is imposed for each foreign national working illegally. For natural persons this fine amounts to €4,000.00 per violation and for private companies and foundations it amounts to €8,000.00 per illegally employed foreign national. In case of repetition of the same or similar violation within a period of 5 years, the fine can be increased up to 200%. The rules with regard to the imposition of fines are laid down in the Dutch Beleidsregel boeteoplegging Wet arbeid vreemdelingen 2017.

It is therefore important for the employer to properly check whether his employees are allowed to work in the Netherlands. Foreign nationals are allowed to work in the Netherlands if, for example, they possess the required work permit or a combined residence & employment permit (so called GVVA). It is also possible that the foreign national has a residence permit stating that the foreign national is allowed to work without a work permit. European Union nationals may always work without a work permit.

If you are confronted with a possible fine as a result of an inspection, it is advisable to contact an attorney, as there are sometimes reasons to reduce the fine imposed. If there are any uncertainties as to whether the foreign national is allowed to work, you can always contact the inspection.