Remote working from abroad

• Does the employee need a work permit to work in the relevant country?
• What happens to any permits issued for a foreign employee in the Netherlands?
• Is there a registration and/or notification requirement in the host country?

• If no choice of law is made in the employment contract, the law of the country where the work is usually performed (the habitual place of work) applies.
• If a choice of law is made, the chosen national law applies. However, this choice may not deprive the employee of the protection of mandatory provisions under the law of the habitual place of work.
• The longer the employee works from abroad, the greater the risk that the host country will be considered the habitual place of work, and its full employment law will apply.

• If the employer initiates proceedings, they must go to the court in the employee’s country of residence.
• The employee has more options: they may go to the court in their country of residence or the court in the habitual place of work.

Within the EU: 

• The employee falls fully under the social security system of their country of residence if they work at least 25% of their time there. Otherwise, they must be (or remain) insured in the employer’s country.
• With an A1 certificate, an employee who temporarily works from another EU country (max. 24 months) can remain insured in the Netherlands.

Outside the EU:

Check whether a treaty exists between the Netherlands and the relevant country. Otherwise, the employee may be required to be insured in both countries.

• Always check whether a treaty exists between the Netherlands and the relevant country to avoid double taxation.
• The general rule is: the country of residence taxes worldwide income, but salary is also taxed in the work country if the employee stays there for more than 183 days within a year. Relief from double taxation can then be requested in the country of residence.

For questions about remote working, please contact Caroline Mehlem, Attorney at law in Employment & Employee Participation.

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