The Dutch Labour Inspectorate recently penalized a local freelance platform and nine hiring companies for violating employment regulations. Investigators found that the platform knowingly placed foreign workers who lacked legal authorization to work in the Netherlands. These violations fall under the Foreign Nationals Employment Act and the Labour Allocation by Intermediaries Act.
Authorities imposed fines totaling €146,500 regarding the Foreign Nationals Employment Act. The platform itself received a fine of €66,000, while nine businesses that hired these individuals for work in hospitality and education faced penalties between €4,000 and €27,000 each. Additional fines were issued for violations concerning how labor is provided to client companies.
The platform attempted to argue that its role was limited to connecting workers with companies, but regulators rejected this classification based on operational realities. The Labour Inspectorate emphasized that the platform functions as an employer under the law regardless of its self-description. This decision reinforces that businesses acting as intermediaries must verify the legal status of workers before assignments begin.
This enforcement action highlights the broader responsibility companies hold when managing contingent labor. Hiring organizations are expected to perform due diligence on the staffing firms they work with to ensure all labor practices meet national requirements. The Dutch government plans to implement an admission system in 2027 for companies that provide temporary workers to further reduce these types of regulatory gaps.