The 4 most frequently asked questions about hiring staff

When hiring staff, four legal questions arise most frequently: who is liable in the event of a workplace accident, who is responsible for payroll taxes, are you allowed to hire staff from outside the EEA, and are you allowed to pay payrolled workers less? In short: your duty of care also applies to hired personnel, you may be liable for payroll taxes through chain liability, a work permit is usually required for employees from outside the EEA, and payrolled workers are entitled to the same employment conditions as your own staff. Below is an explanation for each question.

1. Who is liable if hired personnel have a workplace accident?

The employer has a duty of care and can be held liable for damage sustained by employees due to an accident at work. You must provide a safe working environment, give proper instructions, and supervise. Important: this duty of care also applies to hired personnel, such as temporary agency workers and seconded employees. You are therefore not “exempt” simply because someone is formally employed by another party — the actual workplace is your responsibility.

2. Am I liable for the payroll taxes of hired personnel?

When hiring through an employment agency or secondment agency , the intermediary pays the payroll taxes. However, you as the hirer can be held liable for this: this is called chain liability. If the lender fails to pay the payroll taxes, the Tax and Customs Administration will send a decision and you will have to pay — including additional costs and collection interest.

You limit this risk by:

• only do business with reliable intermediaries, preferably with an SNA quality mark (Foundation for Labor Standards);
• the correct portion into the intermediary's g-account , so that that amount is “earmarked” for taxes;
• to keep good records of who worked where

3. Am I allowed to hire staff from outside the EEA?

Yes, but subject to conditions. You must first attempt to recruit staff from the Netherlands or the European Economic Area (EEA) to protect the local labor market. Furthermore, for employees from outside the EEA and Switzerland, a work permit required, which must be applied for before the start. The staffing agency often arranges this, but always check it yourself — in the absence of a permit, you risk substantial fines.

The rules regarding the admission and employment of migrant workers change regularly; consult the current requirements with the official authorities.

4. Am I allowed to pay payroll workers less than my own staff?

No. Payroll employees are entitled to the same employment conditions as your own employees — both primary (such as salary) and secondary employment conditions. You must inform the payroll company of the employment conditions applicable in your company before commencement. If you do not yet have any staff of your own, you must base this on the employment conditions customary in your sector.

Frequently asked questions about hiring staff

What is the difference between temporary staffing, secondment, and payroll services?

With temporary staffing and secondment, the intermediary recruits the worker and places them with you. With payroll services, you recruit and select the employee yourself, but the payroll company assumes legal employer status. This distinction has implications for employment conditions: payrolled workers are entitled to the same conditions as your own staff.

How do I check if an employment agency is reliable?

Pay attention to the SNA quality mark and registration in the Trade Register as a labor lender. Make use of the G-account and record agreements in writing. This limits your risk of chain liability.

Does my duty of care also apply to self-employed professionals I hire?

In many cases, yes. The duty of care extends to persons performing work under your responsibility, even if they are not employed by you. Therefore, ensure a safe working environment for hired freelancers as well.

Legal assistance with hiring staff

Hiring personnel involves many legal complexities. The legal experts at MKB Juristen advise employers on duty of care, chain liability, work permits, and payroll services. View our employment law or schedule a no-obligation intake.