Local employment contracts - NL Host Nation
8. Local employment contracts
8.1 General
The Vienna Conventions distinguish between individuals who are nationals or permanent residents of the receiving State and those who are not. Diplomatic missions and consular posts may choose to employ Dutch nationals or permanent residents of the Netherlands, but they must only recruit people who may legally work and reside in the Netherlands. A mission or a post is expected to inform the Ministry about any recruited of non diplomatic staff.
8.1.1 Permanent residents
Prior to entering the employment of a diplomatic mission or consular post, non-Dutch nationals must be in possession of a valid residence permit entitling them to work and, if necessary, a work permit issued under the Foreign Nationals (Employment) Act (Wet Arbeid Vreemdelingen), unless they are an EU citizen.
8.1.2 Staff directly recruited in another EU country
Nationals of another EU member state may also be employed by a diplomatic mission or consular post, if they fall under the provisions on the free movement of labour. For Croatian nationals, a transitional regime is in effect; for the time being, the full free movement of labour does not apply to them. Staff members may be hired directly from another member state, without a prior stay in the Netherlands. In that case, they enjoy all privileges and immunities associated with their position.
8.1.3 Staff directly recruited in a third country
It is also possible to recruit people directly from a third country. They must be in possession of a valid residence permit that entitles them to work. Moreover, the diplomatic mission or consular post must obtain a work permit from the UWV WERKbedrijf (UWVWb). Please note that persons who hold an authorisation for temporary stay but not a work permit cannot be employed.
8.1.4 Questions regarding legal status
Any questions concerning legal aspects of the residence status of a prospective member of staff should be submitted the Host Nation Division of the Protocol Department (DPG/NG) of the Ministry of Foreign Affairs prior to arrival and before an employment contract is drawn up.
8.2 Contracts for Dutch nationals or permanent residents
The employer and employee may opt for a foreign legal system to serve as the basis of an employment contract, but even then the mandatory provisions of Dutch employment legislation must be respected. These mandatory provisions should always be respected by both the employer and the employee and have been communicated to all diplomatic missions and consular posts through Note Verbale DPG 2018/189, dated 20 March 2018.
Mandatory provisions of Dutch employment legislation include the following:
8.3 Disputes concerning the implementation of employment contracts
If an employee brings a dispute before a Dutch court, the court will first establish whether it has jurisdiction over the dispute. As Dutch courts will not automatically assume the immunity of diplomatic missions and consular posts, the Ministry advises missions and posts to be represented by a lawyer in any court case. If the employer enjoys immunity, it should ensure its presence at any court hearing in order to claim this immunity.
8.4 Income tax and social insurance contributions
Persons employed at an embassy or consulate are exempt from income tax and social insurance contributions unless they are Dutch nationals or permanently resident in the Netherlands. Individuals who have dual citizenship of which one is Dutch will be regarded as Dutch nationals for the purposes of these exemptions.
Family members forming part of the household of persons enjoying such exemptions are not entitled to any exemptions if they are Dutch nationals or permanently resident in the Netherlands.
Employees who are Dutch nationals or permanently resident in the Netherlands are themselves responsible for paying their share of income tax and national social insurance contributions. The diplomatic mission or consular post is not obliged to deduct these at source or remit them to the Tax and Customs Administration. The mission or post is, however, expected to pay the charges that are customarily paid by employers in the Netherlands consisting of employee social insurance premiums and healthcare contributions.
Each year, employees receive a tax and national social insurance contributions return form from the Tax and Customs Administration. A tax assessment will be issued on the basis of the information the employee provides via this form. Employees are themselves responsible for paying the amount stated in the assessment.
Please note: these employee social insurance contributions and healthcare contributions, an employer is obliged to pay, are not considered to be taxes within the meaning of article 34 of the VCDR.
The Tax and Customs Administration will grant double taxation tax relief on certain income components. This is dependent on the provisions of any conventions that the Netherlands has signed with the sending State to avoid double taxation.
In principle, employees who do not fall under an exemption must pay national social insurance contributions in the Netherlands. However, whether an individual actually has to pay such contributions depends on the social security conventions that are actually in force. Any exemption applies solely to income from employment at a diplomatic mission or consular post. It does not apply to income from employment elsewhere: income tax must be paid on income received from another employer.
For more information about income tax or social insurance contributions please contact Team IFB. by phoning +31 (0)88 152 2546
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The Vienna Conventions distinguish between individuals who are nationals or permanent residents of the receiving State and those who are not. Diplomatic missions and consular posts may choose to employ Dutch nationals or permanent residents of the Netherlands, but they must only recruit people who may legally work and reside in the Netherlands. A mission or a post is expected to inform the Ministry about any recruited of non diplomatic staff.
8.1.1 Permanent residents
Prior to entering the employment of a diplomatic mission or consular post, non-Dutch nationals must be in possession of a valid residence permit entitling them to work and, if necessary, a work permit issued under the Foreign Nationals (Employment) Act (Wet Arbeid Vreemdelingen), unless they are an EU citizen.
8.1.2 Staff directly recruited in another EU country
Nationals of another EU member state may also be employed by a diplomatic mission or consular post, if they fall under the provisions on the free movement of labour. For Croatian nationals, a transitional regime is in effect; for the time being, the full free movement of labour does not apply to them. Staff members may be hired directly from another member state, without a prior stay in the Netherlands. In that case, they enjoy all privileges and immunities associated with their position.
8.1.3 Staff directly recruited in a third country
It is also possible to recruit people directly from a third country. They must be in possession of a valid residence permit that entitles them to work. Moreover, the diplomatic mission or consular post must obtain a work permit from the UWV WERKbedrijf (UWVWb). Please note that persons who hold an authorisation for temporary stay but not a work permit cannot be employed.
8.1.4 Questions regarding legal status
Any questions concerning legal aspects of the residence status of a prospective member of staff should be submitted the Host Nation Division of the Protocol Department (DPG/NG) of the Ministry of Foreign Affairs prior to arrival and before an employment contract is drawn up.
8.2 Contracts for Dutch nationals or permanent residents
The employer and employee may opt for a foreign legal system to serve as the basis of an employment contract, but even then the mandatory provisions of Dutch employment legislation must be respected. These mandatory provisions should always be respected by both the employer and the employee and have been communicated to all diplomatic missions and consular posts through Note Verbale DPG 2018/189, dated 20 March 2018.
Mandatory provisions of Dutch employment legislation include the following:
- employees must earn at least the minimum wage and must receive 8% holiday pay, in accordance with Dutch legislation (for the latest update on the minimum wage, please consult the website of the Ministry of Social Affairs and Employment at minimum wage;
- no employment contract may be terminated while the employee is sick or pregnant;
- salaries must be paid monthly in a timely manner into a bank account held by the employee;
- different treatment of employees is not permitted; treatment must be on an equal basis. regardless of gender, sexual orientation, religion or political beliefs;
- employees must be given paid leave (a minimum of 20 working days’ leave per year).
8.3 Disputes concerning the implementation of employment contracts
If an employee brings a dispute before a Dutch court, the court will first establish whether it has jurisdiction over the dispute. As Dutch courts will not automatically assume the immunity of diplomatic missions and consular posts, the Ministry advises missions and posts to be represented by a lawyer in any court case. If the employer enjoys immunity, it should ensure its presence at any court hearing in order to claim this immunity.
8.4 Income tax and social insurance contributions
Persons employed at an embassy or consulate are exempt from income tax and social insurance contributions unless they are Dutch nationals or permanently resident in the Netherlands. Individuals who have dual citizenship of which one is Dutch will be regarded as Dutch nationals for the purposes of these exemptions.
Family members forming part of the household of persons enjoying such exemptions are not entitled to any exemptions if they are Dutch nationals or permanently resident in the Netherlands.
Employees who are Dutch nationals or permanently resident in the Netherlands are themselves responsible for paying their share of income tax and national social insurance contributions. The diplomatic mission or consular post is not obliged to deduct these at source or remit them to the Tax and Customs Administration. The mission or post is, however, expected to pay the charges that are customarily paid by employers in the Netherlands consisting of employee social insurance premiums and healthcare contributions.
Each year, employees receive a tax and national social insurance contributions return form from the Tax and Customs Administration. A tax assessment will be issued on the basis of the information the employee provides via this form. Employees are themselves responsible for paying the amount stated in the assessment.
Please note: these employee social insurance contributions and healthcare contributions, an employer is obliged to pay, are not considered to be taxes within the meaning of article 34 of the VCDR.
The Tax and Customs Administration will grant double taxation tax relief on certain income components. This is dependent on the provisions of any conventions that the Netherlands has signed with the sending State to avoid double taxation.
In principle, employees who do not fall under an exemption must pay national social insurance contributions in the Netherlands. However, whether an individual actually has to pay such contributions depends on the social security conventions that are actually in force. Any exemption applies solely to income from employment at a diplomatic mission or consular post. It does not apply to income from employment elsewhere: income tax must be paid on income received from another employer.
For more information about income tax or social insurance contributions please contact Team IFB. by phoning +31 (0)88 152 2546
< back to protocolguide