International recruitment?

More and more businesses are looking to recruit across borders in their search for qualified staff. When can a Dutch company start to consider hiring a foreign employee and what are the steps in the hiring process? Find out more from the three examples we have set out in this article.

Staff wanted: can you recruit internationally?

Your business is growing and you are flooded with orders. Unfortunately, you cannot find the right people to fill your vacancies locally. International recruitment would seem the perfect solution. You decide to proceed and you manage to find three new prospective employees:

1. A Swiss welder
2. An Egyptian order picker, who will help out for two months
3. An engineer from Hong Kong

Work and residence permits: what is the employee’s home country?

Switzerland – single market country

First, you need to check whether the person you want to recruit is from the European Economic Area (EEA), which comprises all EU countries, plus Liechtenstein, Norway and Iceland. If your prospective employee is from one of these countries or from Switzerland, which is not an EU or EEA member but part of the single market, you can hire them without questions asked. The free movement of persons is one of the core rights guaranteed in the single European market. You can hire your welder, no problem.

Tip: Check your prospective employee’s ID to make sure what nationality they are.

Please note: As an employer, you are required to look for prospective employees in the EEA and Switzerland first. You cannot widen your search beyond this area unless you are able to demonstrate that you cannot find any qualified staff there.

Egypt – non-EEA

If a prospective employee is not from an EEA country or Switzerland, you will typically need a work permit. The person may also require a residence permit.

Stay of less than 90 days

If you bring in a foreign employee for less than 90 days, they can usually get by with a short-stay visa and a work permit only. In the case of the example, you will have to fulfil the relevant formalities with the Dutch Immigration Service (IND) and the Employee Insurance Administration Agency (UWV) for your Egyptian order picker.

Hong Kong – non-EEA

If your prospective employee is staying longer than 90 days, they will need a residence permit as well as a work permit. Some foreign employees, including knowledge workers, do not require a work permit. Knowledge workers are highly skilled foreign professionals who contribute to the knowledge economy. Your engineer from Hong Kong might qualify as a knowledge worker.

Please note: Knowledge workers are subject to additional requirements. Firstly, your business must be listed as a recognised sponsor with IND. Secondly, the employee’s pay must be in line with the market rate. IND sets the minimum pay rate annually.

Tip: Being a recognised sponsor also brings advantages in other immigration procedures. It gives you the option to submit applications online, you do not have to submit as many supporting documents as non-sponsors and IND will fast-track your applications.

Housing for foreign employees

You have the obligation to arrange for clean and safe housing for your foreign workers. Please remember to check your local authority’s housing requirements.

National insurance number

If your employee does not have a Dutch national insurance number (Dutch acronym: BSN), they are personally expected to apply for one with the Dutch Tax and Customs Administration.

Employment contract for foreign employees

In the employment contract, you will need to stipulate the governing law and the country in which the foreign employee will remit payroll tax and social security contributions. If the employee lives and works in the Netherlands, they will usually make remittances in the Netherlands. As a rule, the governing law is that of the country where the employee typically works.

Tip: prepare the employment contract in a language the employee understands.

To sum up, prospective employees from the EU, Liechtenstein, Norway, Iceland or Switzerland can be hired without restrictions. In other cases, conditions apply, for instance depending on the person’s home country and the length of their stay. You can contact IND for advice if you need help.