Immigration
Netherlands | Stricter enforcement of recognised sponsors
Summary
The Dutch Immigration and Naturalisation Service (IND) has been increasing enforcement of recognised sponsors. This is mainly related to the core duties of recognised sponsors. To ensure compliance, employers are advised to be aware of the rules and have the necessary processes in place to limit the risk of sanctions.
The detail
What is recognised sponsorship?
In order to sponsor permits in fast-track immigration categories, Dutch employers are required to become recognised sponsors with the Dutch Immigration and Naturalisation Service (IND). For example, only recognised sponsors can apply for Highly Skilled Migrant permits for their non-EU/EEA/Swiss employees. As a result, most Dutch companies who regularly hire foreign nationals have recognised sponsorship status.
Recognised sponsorship is a trusted employer scheme that allows employers to secure residence and/or work authorisation for their non-EU/EEA/Swiss workforce is a fast-track procedure with limited documentation requirements. In place since the implementation of the Modern Migration Policy Act of 2013, recognised sponsorship puts a stronger burden on employers after permits have been issued. For example, recognised sponsors are required to notify the IND of any changes relevant to the sponsorship of an employee as well as keep detailed records in their administration. In essence, the burden of proof was shifted to continuous review after issuance of the permits, with the IND trusting the relevant employers in respect of information provided before and after issuance of the permit.
Why is enforcement increasing?
In recent policy reviews of the scheme, the IND came to the conclusion that there had been insufficient emphasis on enforcement. This is while the fast-track service orientated measures for recognised sponsors were deemed to be highly effective. Seeking to redress this perceived imbalance and have more control over compliance, the IND has gradually increased enforcement measures and has been carrying out audits and issuing sanctions in respect of the duties of recognised sponsors. Sanctions can range from warnings and an administrative fine of up to EUR 3.000 to, ultimately, suspension or withdrawal of recognised sponsorship status.
What are the duties of recognised sponsors?
The duties connected to recognised sponsorship are: the duty to inform, the duty of care, and the duty to keep and retain records. More information can be found on the website of the IND here.
As part of the duty to inform, recognised sponsors are expected to inform the IND within 4 weeks about any changes related to the granted immigration status of an employee they are sponsoring. Changes that require notification often include change of sponsor of Highly Skilled Migrants, terminations, and temporary changes in salary.
Recognised sponsors are also required to inform the IND of corporate changes that could impact their sponsorship status. For example, employers who engage in temporary staffing or payrolling in accordance with the Allocation of Workers by Intermediaries Act (Waadi) are required to have accreditation from the Labour Standards Register (SNA). If this accreditation is lost or not in place, the IND must be notified.
After initially issuing formal and informal warnings, the IND is now regularly issuing fines for untimely notifications and other forms of non-compliance with the duty to inform.
As part of the duty of care, employers are required to have a diligent recruitment and selection process. Evidence of this is requested when the IND audits recognised sponsors. In addition, employers are required to inform their sponsored employees of their rights and duties in the Netherlands.
In respect of the administration duty, the recognised sponsor is required to keep records of complying with the above duties, as well as other key documentation related to the sponsorship and employment. In practice this duty is also included in the audits that are being carried out. If the address where records are kept changes, this must be notified to the IND within 2 weeks, as part of the duty to inform.
What does this mean for employers?
The relevant obligations for recognised sponsors have been in place for many years. However with increasing enforcement and sanctioning of non-compliance, it is advisable for employers to continuously assess whether they are aware of all the relevant legal immigration obligations for recognised sponsorship and have the required processes in place to ensure compliance.
While the IND is responsible for enforcing the relevant obligations for recognised sponsorship, the Dutch Labour Inspectorate also enforces immigration and employment rules more broadly. Employers should therefore also ensure compliance with all other immigration related legislation beyond the obligations of recognised sponsorship.
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Hugo Vijge
Director
Anoushka Bhawanidin
Manager
Nini Braken-Zheng
Senior Associate
Marijan Vrhovac
Senior Associate
Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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