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Global Updates: NETHERLANDS


NETHERLANDS

Fines for illegal employment have decreased from €12,000 to €8,000.

On January 1, 2013, the government raised the fines for illegal employment by 50% (from
€8,000 to €12,000 per unauthorized employee) “to bring the fines up to the general price indexation level.” In a landmark ruling on October 12, 2015, the High Administrative Court judged that this increase was unjustified and that any fine imposed on the basis of this rule must be deemed unreasonable (High Administrative Court 12 October 2015, 201500286/1/V6 http://www.raadvanstate.nl).

In response to this ruling, the Secretary of State of Social Affairs proclaimed on October 15, 2015, that the penalties for illegal employment are lowered from €12,000 to €8,000. Only in cases of grave and persistent noncompliance can an employer be fined €12,000 per unauthorized employee. This amendment entered into force with slight retroactive effect to October 7, 2015 (Official Gazette 2015, 36169).

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