In our increasingly globalised world, cross-border employment has become a common reality. Whether you are a Dutch employee taking on a role abroad or a foreign employee working for a Dutch company, understanding the legal implications of your employment relationship is crucial. GMW lawyers is here to guide you through the complexities of employment law, ensuring you know your rights and obligations.
The first question to consider is whether a choice of law has been established. This is where it is decided which country's legal system is applicable to the employment. According to the Rome I Regulation, the applicable law generally follows the choice made by the parties. Many employment contracts include a specific choice of law.
Even when a choice of law exists, it does not automatically apply. The Rome I Regulation protects employees from being deprived of mandatory rules that cannot be deviated from.
To determine which law would apply in the absence of a choice, the "objectively applicable law" must be determined. This involves looking at the country where the employee ordinarily performs their work. If that's unclear, the law of the country where the employer's business is located will govern the contract.
Once you establish the usual country of work, it must be assessed whether the employee has a closer connection to another country than the country in which the employee usually performs their work.
If that is the case, then the law of this country is the objective applicable law. It follows from case law that various factors must be taken into account, including where the employee pays taxes, where they are enrolled in social security and the different pension and insurance schemes they are part of.
Do you have any questions about your cross-border employment? Contact GMW lawyers now!
After determining the objectively applicable law, parties must determine whether the chosen law is not less favourable to the employee than the mandatory provisions of the objectively applicable legal system. Mandatory law refers to statutory provisions that cannot be waived by either party. In the Netherlands, this includes regulations on minimum wage, dismissal rights, and minimum holiday entitlements.
Cross-border employment laws can be complicated, but it's important that you understand how they apply to you. Even if parties have made a choice of law, it does not guarantee that it will automatically apply. Understanding the objectively applicable law and identifying which mandatory statutory provisions are more favourable to you is essential. The good news is that you don’t have to do it alone.
GMW lawyers specialises in employment law, and their lawyers will be happy to provide you with advice tailored to your unique circumstances. Do you have any questions about your cross-border employment situation or need guidance on employment law in the Netherlands? Don’t hesitate to reach out to their experienced and professional team of English-speaking lawyers.
Contact GMW lawyers today and ensure that you know your rights - they can work it out!