The Netherlands, known for its progressive stance on international trade and practical approach to work permit rules, has regulatory frameworks in place to support project-based work and facilitate the participation of foreign skilled workers in those projects.
With its strategic location on the North Sea, advanced infrastructure and commitment to sustainability, the Netherlands is a hub for offshore activities, ranging from renewable energy ventures to maritime engineering projects. How can foreign skilled workers compliantly engage in working activities for such projects?
Understanding the intricacies of the International Trade Regulation (ITR) in the Netherlands is crucial for businesses and professionals seeking to engage in energy sector projects in Dutch territorial waters. The ITR is a strategic solution for many trade initiatives in the Netherlands, and this blog specifically highlights the unique alignment with offshore projects.
Support for Offshore Projects
The Netherlands has prioritized the development of offshore projects, particularly in renewable energy sources such as wind, solar and tidal power. The country's expansive coastline and favorable wind conditions make it an ideal location for offshore wind farms, which have emerged as a cornerstone of its energy transition strategy.
To support offshore wind projects, the Dutch government has implemented various incentives and regulatory mechanisms. These include subsidies for renewable energy generation, streamlined permit procedures and designated zones for offshore wind development. Foreign companies and skilled workers involved in offshore wind projects can benefit from these incentives, fostering further collaboration and innovation in this and other offshore project sectors.
Moreover, the Netherlands has invested in infrastructure projects to enhance the efficiency and sustainability of offshore activities. The Port of Rotterdam, Europe's largest seaport, serves as a vital hub for offshore logistics and maritime services. The development of specialized facilities and offshore terminals facilitates the installation, maintenance and decommissioning of offshore structures, creating opportunities for foreign companies and skilled workers to participate in large-scale projects.
Regulatory Framework
The Netherlands operates within the framework of the European Union (EU), adhering to EU directives and regulations governing international trade. As an EU member state, the Netherlands benefits from the free movement of goods, services, capital and labor across its borders. The harmonization of trade policies within the EU ensures a level playing field for businesses and facilitates cross-border cooperation in offshore ventures.
At the national level, the Dutch government has implemented comprehensive legislation to regulate international trade and offshore activities. Key regulatory bodies such as the Ministry of Foreign Affairs, the Ministry of Economic Affairs and Climate Policy and the Netherlands Enterprise Agency (RVO) play pivotal roles in formulating trade policies, issuing permits and promoting investment in offshore projects.
It is important to note that the specific type of highly skilled and highly specialized employee required for Energy sector projects can't always be found in the Dutch or European labor markets.
Fragomen's Amsterdam Program Implementation Practice offers many bespoke, project or ad hoc-based strategic services to companies and contractors active in the sector. For example, if you intend to send employees for a specific project on your worksite or as part of a client service agreement to take place at the client site, it may be worth assessing if the project can be registered under the ITR.
The purpose of the ITR is to ensure that employees and businesses can deploy foreign workers in the Netherlands in a flexible manner. To make use of this regulation and its benefits, certain conditions must be met. For instance, a scheme may be eligible if it involves international trade, cooperation or services.
Furthermore, there must be no competition, meaning that Dutch/EU workers cannot perform the work activities and that there is thus a need for foreign specialized labor. The Employee Insurance Agency (UWV, the Labour authorities) consider various points when deciding whether to admit a scheme, including:
- What is the content of the project? Does it involve international trade, cooperation or services?
- How many employees are involved in the project and what are the tasks or duties they will be performing?
- What is the duration of the project?
- What is the value of the goods or services delivered or received?
- What is the estimated total value of the project?
How Fragomen Can Help
Fragomen offers specific knowledge surrounding ITR, offering pre-analysis of whether the project is likely to be approved. We focus on thorough assessment and maximum client satisfaction.
Once the UWV has determined that a scheme falls under the ITR, the foreign employees can work in the Netherlands based on a simple ITR notification alone, which can be filed as late as 48 hours before the work is performed, and no additional work permits are required.
If an employee needs to work in the Netherlands under the ITR for longer than the allowed Schengen days (90 in any 180 days), Fragomen can assist in obtaining a residence permit from the Dutch immigration authorities. The need for a residence permit will be analyzed on a case-to-case basis.
Fragomen has developed internal processes to ensure that the registration of projects, the submission of notifications and the application for residence permits run as smoothly as possible with proactive flags to circumvent avoidable delays. Applying project management to oversee and ensure that the various government agency stakeholders (UWV, IND) are aligned is also a value-added service offering many clients benefit from selecting.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.